The bill amends Section 44-25-1 of the General Laws concerning the Real Estate Conveyance Tax, introducing a base tax rate of $2.30 for every $500 of consideration paid on real estate transactions when the consideration exceeds $100. For residential properties sold for more than $800,000, an additional tax applies to the amount exceeding that threshold. A key insertion allows municipalities to impose an extra tax of up to $10 for every $500 on residential properties sold for over $900,000, contingent upon local ordinance enactment. The bill also specifies that municipalities retaining this additional tax must use the funds exclusively for affordable housing development, overseen by a local affordable housing board.

Furthermore, the bill outlines the distribution of tax revenues, mandating that portions be allocated to various programs, including the distressed community relief program and the housing production fund. It establishes that excess taxes collected must be deposited into a restricted account for affordable housing initiatives aimed at individuals or families earning at or below 80% of the area median income, with the option to transfer funds to state housing agencies for community development. Additionally, the bill clarifies the definition of an "acquired real estate company" and requires notification to the tax administrator regarding ownership changes, emphasizing that any transfer resulting in such a classification will be deemed fraudulent unless proper notification and tax payment are completed. The act is set to take effect upon passage.

Statutes affected:
37: 44-25-1