HB 5979 — AN ACT EXEMPTING CONVEYANCES AND SALES OR TRANSFERS OF CONTROLLING INTEREST TO PUBLIC HOUSING AUTHORITIES FROM THE REAL ESTATE CONVEYANCE TAX AND THE CONTROLLING INTEREST TRANSFER TAX.

House of Representatives General Assembly SubstituteFile Bill No.

5979855 January Session, 2025 ANSubstitute ACTHouse EXEMPTINGBill CONVEYANCESNo. AND SALES OR TRANSFERS OF CONTROLLING INTEREST TO PUBLIC HOUSING AUTHORITIES FROM THE REAL ESTATE CONVEYANCE TAX AND THE CONTROLLING INTEREST TRANSFER TAX.

5979 House of Representatives, May 8, 2025 The Committee on Finance, Revenue and Bonding reported through REP.

HORN of the 64th Dist., Chairperson of the Committee on the part of the House, that the substitute bill ought to pass.

AN ACT EXEMPTING CONVEYANCES AND SALES OR TRANSFERS OF CONTROLLING INTEREST TO PUBLIC HOUSING AUTHORITIES FROM THE REAL ESTATE CONVEYANCE TAX AND THE CONTROLLING INTEREST TRANSFER TAX.

(4)sHB5979 Tax/ deeds;File No.

855 1 sHB5979 File No.

855 (4) Tax deeds;

LCO(7) 1Deeds ofmade 6pursuant Substituteto Billmergers No.of corporations;

5979 (7) Deeds made pursuant to mergers of corporations;

(15)sHB5979 Deeds/ ofFile propertyNo. for the Adriaen's Landing site or the stadium facility site, for purposes of theoverall project, each as defined in section 32-651;

(16)855 Land transfers made on or after July 1, 1998, to a water company, LCO 2 ofsHB5979 6File Substitute Bill No.

5979855 as(15) definedDeeds inof sectionproperty 16-1,for provided the landAdriaen's isLanding classifiedsite asor classthe Istadium orfacility classsite, IIfor land,purposes of theoverall project, each as defined in section 25-37c,32-651; after such transfer;

(16) Land transfers made on or after July 1, 1998, to a water company, as defined in section 16-1, provided the land is classified as class I or class II land, as defined in section 25-37c, after such transfer;

The exemption authorized under this subdivision shall (A) apply to the first transfer of such residence after such written evaluation has been obtained, and (B) not be available to a transferor whosHB5979 has/ receivedFile financialNo. assistance to repair or replace such foundation from the Crumbling Foundations Assistance Fund established under section 8-441;

[and]855 (22) Deeds of property with dwelling units where all such units are LCO 3 ofsHB5979 6File Substitute Bill No.

5979855 deedwho restrictedhas asreceived affordablefinancial housing,assistance asto definedrepair inor replace such foundation from the Crumbling Foundations Assistance Fund established under section 8-39a.8-441;

[and] (22) Deeds of property with dwelling units where all such units are deed restricted as affordable housing, as defined in section 8-39a.

(a) (1) There is hereby imposed a tax on the sale or transfer of a controlling interest in any entity [which] that possesses, directly or indirectly, an interest in real property in this state when the present true andsHB5979 actual/ valueFile of the interest in real property equals or exceeds two thousand dollars, payable by the person selling or transferring such controlling interest, at the rate of one and eleven one-hundredths of one per cent of the present true and actual value of the interest in real LCO 4 of 6 Substitute Bill No.

5979855 property4 possessed,sHB5979 directlyFile orNo. indirectly, by such entity.

855 and actual value of the interest in real property equals or exceeds two thousand dollars, payable by the person selling or transferring such controlling interest, at the rate of one and eleven one-hundredths of one per cent of the present true and actual value of the interest in real property possessed, directly or indirectly, by such entity.

Section 1 July 1, 2025, and 12-498 applicable to conveyances made on or after July 1, Sec.sHB5979 / File No.

2855 July 1, 2025, and 12-638b applicable to sales or transfers occurring on or after July 1, 2025 LCO 5 ofsHB5979 6File Substitute Bill No.

5979855 StatementSec. of Legislative Commissioners:

2 July 1, 2025, and 12-638b applicable to sales or transfers occurring on or after July 1, 2025 Statement of Legislative Commissioners:

-LCO LCOsHB5979 6/ ofFile 6No.

855 6 sHB5979 File No.

855 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 26 $ FY 27 $ Revenue Serv., Dept.

GF - Revenue 2.2 million 2.2 million Loss Note:

GF=General Fund Municipal Impact:

Municipalities Effect FY 26 $ FY 27 $ All Municipalities Revenue Potential Potential Loss Explanation The bill, which exempts public housing authorities from (1) real estate conveyance taxes and (2) the controlling interest transfer tax, results in a General Fund revenue loss of approximately $2.2 million annually beginning in FY 26.

The bill also results in a revenue loss to municipalities by exempting certain deeds from the municipal real estate conveyance tax and exemptingcertainsalesortransfersfromthecontrollinginteresttransfer 2,3 tax.

The Out Years The annualized ongoing fiscal impact identified above would 1There is both a state and municipal real estate conveyance tax;

the bill exempts public housing authorities from each.

2The conveyance tax has a municipal component and ranges from 1% to 2.75%.

The controlling interest tax is 1.11% and is first collected by the state.