Introduced
by
To charge the .75 real estate transfer tax to “initial improvements” made to a vacant lot, including the construction of a house, if the sales contract on the lot includes a requirement limiting the buyer’s choice of construction contractor, or if the initial improvements are constructed by the seller or an affiliate of the seller. Some allege that this closes a “loophole” used by some developers to avoid paying real estate transfer tax on the value of a new structure; others contend that the bill is in effect a new “construction tax.” This bill is one of many authorizing “revenue enhancements” which Gov. Jennifer Granholm has proposed to close a gap between state spending and expected revenue in the Fiscal Year 2003-2004 budget.
Referred to the Committee on Finance
