117 HR 9585 IH: American Property Act U.S. House of Representatives 2022-12-15 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I117th CONGRESS2d SessionH. R. 9585IN THE HOUSE OF REPRESENTATIVESDecember 15, 2022Mr. Jacobs of New York introduced the following bill; which was referred to the Committee on Ways and MeansA BILLTo amend the Internal Revenue Code of 1986 to impose a tax on foreign-owned under-utilized residential real property.

1.

Short title

This Act may be cited as the American Property Act.

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:E

Tax on foreign-Owned under-Utilized residential real property

Sec. 4491. Tax on foreign-owned under-utilized residential real property.

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.