DRS: Ruling 89-124, Real Estate Conveyance Tax

 

STATE OF CONNECTICUT
DEPARTMENT OF REVENUE SERVICES

450 Columbus Blvd
Hartford CT 06103
 
 
 
 
 
 

 
 

Ruling 89-124

Real Estate Conveyance Tax


You have inquired whether an exchange of an undivided one-half interest in one condominium for an undivided one-half interest in another is subject to State and municipal real estate conveyance taxes. Two conveyances have been made, and each is subject to the taxes. See Conn. Agencies Regs. 12-494-2(a)(2).

You have also inquired what the measure of the taxes is. The consideration received by each set of grantors would include the amount of any liability to which the realty is subject. See Conn. Agencies Regs. 12-494-1(a)(2).

If C and D transfer their undivided one-half interest in condominium B to E and F, subject to a mortgage granted on condominium B, in exchange for E and F transferring their undivided one-half interest in condominium A to C and D, subject to a mortgage granted on condominium A, two taxable conveyances have been made. The measure of the tax in each instance is the principal balance of the mortgage plus any accrued interest.

LEGAL DIVISION

September 27, 1989