Bulletin: RI2021005

Dear Associates:

Effective January 1, 2022, Rhode Island’s real estate conveyance tax under Rhode Island General Laws Chapter 44-25 will change.

Under current law, the real estate conveyance tax rate is $2.30 for each $500.00 (or fractional part thereof) of consideration paid for the purchase of real estate. Effective January 1, 2022, there will be an additional tax of $2.30 for each $500.00 of the consideration paid in excess of $800,000.00.

By way of example, effective January 1, 2022, if real estate is sold for $900,000.00 the tax will be $4,600.00. This figure is calculated by applying the rate of $2.30 for each $500.00 to the entire consideration of $900,000.00 and then adding the additional tax of $2.30 for each $500.00 exceeding $800,000.00:

[($900,000.00 ÷ $500.00) x $2.30] + [($100,000.00 ÷ $500.00) x $2.30] = $4,600.00.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.