A Connecticut broker is advising a seller whose property qualifies as a transfer of a principal residence. The seller has heard that Connecticut provides an exemption or reduced rate for certain residential transfers. Which of the following most accurately describes how Connecticut's conveyance tax treats the sale of a principal residence compared to other residential property?
Correct Answer
D) Connecticut applies the same tiered conveyance tax rates to all residential property sales, including principal residences, with no special exemption based on owner-occupancy.
Under CGS § 12-494, Connecticut's conveyance tax applies to residential property sales using the standard tiered rate structure (0.75% / 1.25% / 2.25%) regardless of whether the property is the seller's principal residence. Connecticut does not provide a principal-residence exemption or reduced rate from the conveyance tax based on owner-occupancy status, unlike the federal income tax exclusion under IRC § 121 which is a separate concept.
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