American Property Act
This bill imposes an excise tax on foreign persons who own any specified under-utilized residential real property for more than one-half of any taxable year. The amount of such tax is 1% of the estimated value of such property.
The bill defines specified under-utilized residential real property as any specified residential property located in the United States that is occupied as a dwelling unit for less than 180 days during the taxable year. Specified residential property means a single-family home or structure consisting of four residential units or less, or a part of a building that is a semi-detached house, rowhouse unit, residential condominium unit or other similar premises that is, or is intended to be, a separate parcel or other division of real property, and includes any land that was conveyed with such home, structure, or building.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9585 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 9585
To amend the Internal Revenue Code of 1986 to impose a tax on foreign-
owned under-utilized residential real property.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 15, 2022
Mr. Jacobs of New York introduced the following bill; which was
referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to impose a tax on foreign-
owned under-utilized residential real property.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``American Property Act''.
SEC. 2. TAX ON FOREIGN-OWNED UNDER-UTILIZED RESIDENTIAL REAL PROPERTY.
(a) In General.--Chapter 36 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subchapter:
``Subchapter E--Tax on Foreign-Owned Under-Utilized Residential Real
Property
``Sec. 4491. Tax on foreign-owned under-utilized residential real
property.
``SEC. 4491. TAX ON FOREIGN-OWNED UNDER-UTILIZED RESIDENTIAL REAL
PROPERTY.
``(a) In General.--In the case of any specified foreign person
which owns any specified under-utilized residential real property for
more than one-half of any taxable year, there is hereby imposed a tax
equal to 1 percent of the estimated value of such property.
``(b) Specified Under-Utilized Residential Real Property.--For
purposes of this section--
``(1) In general.--The term `specified under-utilized
residential real property' means, with respect to any taxable
year, any specified residential property located in the United
States which is occupied as a dwelling unit for less than 180
days, as determined pursuant to paragraph (2).
``(2) Determination of occupancy.--
``(A) In general.--Occupancy of specified
residential property shall be determined by taking into
consideration only such days as fall into a qualifying
occupancy period.
``(B) Qualifying occupancy period.--The term
`qualifying occupancy period' means a period of at
least one month in the taxable year during which a
qualifying occupant has continuous occupancy of a
dwelling unit.
``(C) Qualifying occupant.--
``(i) In general.--The term `qualifying
occupant' means an individual who is--
``(I) the taxpayer, the spouse,
parent, or child of such taxpayer, or a
tenant, and
``(II) either--
``(aa) a citizen or
permanent resident of the
United States, or
``(bb) authorized to work
in the United States.
``(ii) Special rule for taxpayer and
spouse.--In the case of a taxpayer or spouse of
such taxpayer, such individual may only be
taken into account as a qualifying occupant if
the dwelling unit is the primary residence of
such individual during the qualifying occupancy
period.
``(3) Specified residential property.--The term `specified
residential property' means a single-family home or structure
consisting of four residential units or less, or a part of a
building that is a semi-detached house, rowhouse unit,
residential condominium unit or other similar premises that is,
or is intended to be, a separate parcel or other division of
real property, and includes any land which was conveyed with
such home, structure, or building.
``(c) Estimated Value.--For purposes of this section, the term
`estimated value' means, with respect to property for any taxable year,
the greater of--
``(1) the appraised value of such property for purposes of
determining State or local property taxes (determined as of the
close of such taxable year), or
``(2) the most recent sales price of such property (as so
determined).
``(d) Specified Foreign Person.--For purposes of this section, the
term `specified foreign person' means any person other than a United
States person.
``(e) Special Rules for Property Acquired or Transferred During a
Taxable Year.--
``(1) Application of occupancy rules.--For purposes of
subsection (b)(1), specified under-utilized residential real
property shall not be treated as occupied as a dwelling unit
with respect to any taxpayer for any day during which the
taxpayer did not own such property.
``(2) Estimated value.--In the case of any specified under-
utilized residential real property sold or otherwise
transferred by the taxpayer during the taxable year--
``(A) the amount described in subsection (c)(1)
shall be determined as of the last day on which the
taxpayer owns such property, and
``(B) the amount described in subsection (c)(2)
shall be the amount for which such property is so sold
or otherwise transferred.''.
(b) Clerical Amendment.--The table of subchapters for chapter 36 of
the Internal Revenue Code of 1986 is amended by adding at the end the
following new item:
``subchapter e--tax on foreign-owned under-utilized residential real
property''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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