Bulletin: CT2017002

Dear Associates:

IMPORTANT INFORMATION RE:  

THE CONNECTICUT REAL ESTATE CONVEYANCE TAX RETURN (FORM OP-236)

The CT Department of Revenue services has just released two new informational websites regarding the Real Estate Conveyance Tax Return (Form OP-236) as well as an updated form. Links to the websites and revised form can be found below. Note that the changes include some very important rules regarding Social Security Numbers (SSN's) and Employer Identification Numbers (EIN's).

Following is a summary of the highlights:

IP 2017(9)

1. While a Town Clerk cannot refuse to record an instrument based upon the fact that the return does not include the SSN's of the Grantor(s) (see C.G.S. §12-497), any such return will be considered incomplete and will be subject to additional review by the DRS. Note, however, that a willful failure to supply a SSN may subject the Grantor(s) to a penalty of up to $1,000.00 and/or a one year prison term. In addition, willfully filing a return with a false SSN is a Class D felony.
2. Where the Grantor is an entity, the Town Clerk must refuse to record any accompanying instrument when the EIN is not provided on the return.
3. Where the Grantor is a pass-through entity, a Town Clerk will "generally" accept an instrument for recording where the return includes the EIN of the entity and may not refuse the same based upon the fact that the Schedule A of the return does not contain the SSN's of the individual members or partners.
4. The on-line OP-236 form can be printed and completed by hand.

Format changes to Form OP-236

1. The fonts on the name and address fields and the property location field are now "shrink to fit" thereby allowing more characters on the form.
2. The declaration and signature requirement have been removed from the Town Clerk Copy.
3. The pink shading was removed from page 1 of the OP-236 and is now only on the Town Clerk Copy consistent with the old carbon copy form. 
4. Line 7 on the OP-236 changed to ask if more than one deed was filed with this conveyance. This allows for manipulation to the mansion tax threshold on line 16a. Preparers should read the instructions for Lines 16, 16a, and 16b for details.
5. Line 14 check box for exempt transfers now requires an exempt code entry. Exempt codes 1, 9A, 9B, 9C, or 9D require a citation as well. If an exemption is claimed, the preparer can enter the consideration on the appropriate line and there is "no tax due" calculation.
6. The consideration and tax fields now display commas. 

AN 2017(8) Reiterates prior DRS guidance on the continued acceptance carbon form returns until the exhaustion of existing supplies. 

Links

OP-236 (http://www.ct.gov/drs/lib/drs/forms/1-2017/realestate/op-236.pdf) Connecticut Real Estate Conveyance Tax Return

AN 2017(8) (http://www.ct.gov/drs/cwp/view.asp?a=1508&q=592176) Revision to the Connecticut Real Estate Conveyance Tax Return

IP 2017(9) (http://www.ct.gov/drs/cwp/view.asp?a=1510&q=592148) Real Estate Conveyance Tax Return Information.   If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

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