The bill amends the General Laws regarding the Real Estate Conveyance Tax by revising the tax structure for real estate transactions. It sets a tax rate of $2.30 per $500 of consideration for property purchases when the consideration exceeds $100, and the same rate applies to residential property sold for over $800,000 on the amount exceeding that threshold. The bill also introduces a new subsection (c), which imposes an additional tax of $6.90 per $500 of consideration on the conveyance of single-family residential real property to entities with assets over $15 million, to be paid by the purchaser. The revenue from this tax is allocated to various programs and government bodies, including the distressed community relief program and the housing resources commission. The bill includes a deletion in the definition of an "acquired real estate company," removing the reference to "subsection (e)(2)" and clarifying ownership change conditions.

The bill further specifies the obligations of real estate companies that become acquired real estate companies, requiring notification to the division of taxation and tax remittance at least five days before the transaction. Failure to comply will result in the transaction being considered fraudulent and void against the state. Upon tax payment, a certificate from the tax administrator will be issued, which can be recorded in land evidence records. Additionally, the bill imposes an extra conveyance tax on for-profit entities with over $15 million in assets purchasing single-family residences, with the proceeds going to the Housing Production Fund. The bill is intended to take effect immediately upon passage. The summary does not mention any specific insertions or deletions from the current law beyond the deletion in the definition of an "acquired real estate company."

Statutes affected:
7683: 44-25-1