The bill amends Section 44-25-1 of the General Laws in Chapter 44-25, titled "Real Estate Conveyance Tax," to introduce a new tax structure for real estate transactions. It establishes a tax of $2.30 for every $500 of consideration paid for real estate transactions exceeding $100, with an additional tax of $3.13 for every $500 on commercial properties sold for over $1.5 million. The tax is to be paid at the time of the transaction, typically by the grantor or transferor. Furthermore, the bill mandates that all tax revenues from residential property sales be directed to the housing production fund, while those from commercial property sales will go to the Housing Resources and Homelessness restricted receipt account.

In addition to the new tax provisions, the bill clarifies the definition of "acquired real estate company" and outlines the notification process for ownership transfers, requiring that any transfer resulting in a company becoming an acquired real estate company must be reported to the division of taxation at least five days prior to the transaction. It also stipulates that any transfer not complying with these requirements will be considered fraudulent and void against the state. The bill replaces certain existing provisions related to ownership transfers to ensure compliance with the new tax structure, and it is set to take effect immediately upon passage.

Statutes affected:
6257: 44-25-1