HB 2387 Summary

• Adds an exemption to municipal transaction privilege taxes for speculative builders by excluding the price of leases on real property or other intangible/personal property from the sales price calculation, as allocated in the affidavit of legal value under section 11-1133.

• Requires that the resulting tax on gross proceeds or gross income from a speculative builder's sale cannot be less than the tax that would have been paid under standard property improvement tax provisions.

• Makes the exemption retroactively effective for sales of improved real property within the statute of limitations period, with a cap of $10,000 maximum aggregate refunds per city or town (reduced proportionally if claims exceed this amount).

• Requires cities and towns to remit and forgive any taxes, interest, or penalties assessed before the effective date that exceed amounts owed under the new law.

• Mandates that cities and towns release any liens filed against sellers' property and withdraw recorded notices of lien related to amounts that are now forgiven under this act.