2015 -- H 5736

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LC001136

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO TAXATION -- REAL ESTATE CONVEYANCE TAX

     Introduced By: Representatives Giarrusso, Trillo, Chippendale, Morgan, and Costa

     Date Introduced: February 26, 2015

     Referred To: House 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 and thirty cents ($2.30) two dollars ($2.00) 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 and thirty cents ($2.30) two dollars ($2.00) of the face

value of the stamps to be distributed pursuant to § 45-13-12., and to the housing resources

commission restricted receipts account the sum of thirty cents ($.30) per two dollars and thirty

cents ($2.30) of the face value of the stamps. Funds will be administered by the department of

administration, office of housing and community development, through the housing resources

commission. 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 and thirty cents ($2.30) 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 upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION -- REAL ESTATE CONVEYANCE TAX

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     This act would reduce the real estate conveyance tax from $2.30 per $500 of purchase

price to $2.00 per $500.

     This act would take effect upon passage.

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LC001136

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