SN 2009(9), 2009 Legislative Change Affecting the Connecticut Real Estate Conveyance Tax

Deeds of Sale Under a Decree of the Superior Court Pertaining to Foreclosure by Sale Are Subject to the Real Estate Conveyance Tax: The judicial foreclosure process in Connecticut is carried out by either strict foreclosure or a decree of sale. In the case of a decree of sale, the court establishes the time and manner of the sale; appoints a committee to sell the property; and appoints three appraisers to determine the value of the property. The committee then proceeds to sell the real property. As evidence of the sale, a deed (commonly referred to as a committee deed) is issued to the purchaser. Deeds made under a decree of the Superior Court pertaining to a foreclosure by sale were previously exempt from the real estate conveyance tax under Conn. Gen. Stat. §12-498(a)(9).

2009 Conn. Pub. Acts 3, §114 (June Spec. Sess.) repeals the real estate conveyance tax exemption for deeds made under a decree of the Superior Court pertaining to foreclosures by sale. As a result, deeds made under a decree of sale conveying an interest in real property on or after January 1, 2010, will be subject to the real estate conveyance tax.

Effect on Other Documents: None affected.

ffect of This Document: A Special Notice announces a new policy or practice in response to changes in state or federal laws or regulations or to judicial decisions. A Special Notice indicates an informal interpretation of Connecticut tax law by the Department of Revenue Services (DRS).

For Further Information: Call DRS during business hours, Monday through Friday:

• 1-800-382-9463 (Connecticut calls outside the Greater Hartford calling area only); or
• 860-297-5962 (from anywhere).

TTY, TDD, and Text Telephone users only may transmit inquiries anytime by calling 860-297-4911.