Adult family homes

From the 2024 DOR Tax Exemption Study

(i) If the department of social and health services determines that the property fails to meet the requirements for continued use, the department of social and health services must notify the depart- ment and the real estate excise tax becomes immediately due and paya- ble by the qualified entity. (ii) The measure of the tax is the value of the property at the time of its initial transfer into use as residential property for per- sons with developmental disabilities. (iii) The tax due is not subject to penalties, fees, or interest. (b) If the qualified entity sells or otherwise conveys ownership of the residential property, including the conveyance of the residen- tial property as a result of casualty, the proceeds of the sale or conveyance must be used to acquire similar residential property and such similar residential property must be considered the successor for continued use. The exemption from real estate excise tax is limited to the ini- tial transfer to the qualified entity. Any subsequent sale or convey- ance of the real property is subject to real estate excise tax. (7) Documentation requirements. (a) In order to receive the exemption under this rule, a real es- tate exci