2014 -- S 2461

========

LC004735

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

____________

A N   A C T

RELATING TO TAXATION -- REAL ESTATE CONVEYANCE TAX

     Introduced By: Senators Crowley, Goldin, Miller, Pichardo, and Metts

     Date Introduced: February 27, 2014

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 44-25-1 of the General Laws in Chapter 44-25 entitled "Real Estate

Conveyance Tax" is hereby amended to read as follows:

     44-25-1. Tax imposed -- Payment -- Burden. -- (a) There is imposed, on each deed,

instrument, or writing by which any lands, tenements, or other realty sold is granted, assigned,

transferred, or conveyed to, or vested in, the purchaser or purchasers, or any other person or

persons, by his or her or their direction, when the consideration paid exceeds one hundred dollars

($100), a tax at the rate of two dollars ($2.00) two dollars and fifty cents ($2.50) for each five

hundred dollars ($500) or fractional part of it which is paid for the purchase of the property

(inclusive of the value of any lien or encumbrance remaining at the time of sale), which tax is

payable at the time of making, execution, delivery, acceptance or presenting for recording of the

instrument. In the absence of an agreement to the contrary, the tax shall be paid by the grantor.

      (b) In the event no consideration is actually paid for the lands, tenements, or realty, the

instrument of conveyance shall contain a statement to the effect that the consideration is such that

no documentary stamps are required.

      (c) The tax administrator shall contribute to the distressed community relief program the

sum of thirty cents ($.30) per two dollars ($2.00) of the face value of the stamps to be distributed

pursuant to section 45-13-12., and to the affordable housing rental subsidy account the sum of

fifty cents ($.50) per two dollars and fifty cents ($2.50) of the face value of the stamps to be

distributed pursuant to § 35-3-22 and chapter 11.2 of title 42. The state shall retain sixty cents

($.60) for state use. The balance of the tax shall be retained by the municipality collecting the tax.

Provided, however, in fiscal years 2004 and 2005, from the proceeds of this tax, the tax

administrator shall deposit as general revenues the sum of ninety cents ($.90) per two dollars

($2.00) of the face value of the stamps. The balance of the tax is retained by the municipality

collecting the tax.

     SECTION 2. This act shall take effect on July 1, 2014.

========

LC004735

========

LC004735 - Page 2 of 2

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION -- REAL ESTATE CONVEYANCE TAX

***

     This act would increase the real estate conveyance tax from two dollars ($2.00) to two

dollars and fifty cents ($2.50) per five hundred dollars ($500) of the sale price, with the increase

to go to the affordable housing rental subsidy account.

     This act would take effect on July 1, 2014.

========

LC004735

========

LC004735 - Page 3 of 2