Sec. 12-347. Exemptions.
Sec. 12-347. Exemptions. (a) There shall be exempt from the tax imposed by this
chapter all transfers to or for the use of the United States, any state or territory, or
any political subdivision thereof, the District of Columbia, any public institution for
exclusively public purposes, any corporation or institution located within this state
which receives money appropriations made by the General Assembly, or any corporation, institution, society, association or trust, incorporated or organized under the laws
of this state or of any state whose laws provide a similar exemption of transfers to any
similar Connecticut corporation, institution, society, association or trust, formed for
charitable, educational, literary, scientific, historical or religious purposes, provided the
property transferred is to be used exclusively for one or more of such purposes; but no
such transfer shall be exempt if, at the time such transfer occurred, any officer, member,
shareholder or employee of such corporation, institution, society, association or trust is
receiving or previously received any pecuniary profit from the operation thereof, except
reasonable compensation for services in effecting one or more of such purposes or as
proper beneficiaries of a strictly charitable purpose, or if the organization of any such
corporation, institution, society, association or trust for any of the foregoing avowed
purposes is a guise or pretense for directly or indirectly making for it, or for any of its
officers, members, shareholders or employees, any other pecuniary profit, or if it is not
in good faith organized or conducted for one or more of such purposes; and any transfer
to any person, association or corporation in trust for the care of any cemetery lot.
(b) All transfers to or for the use of any corporation, institution, society, association
or trust which would be exempt under the provisions of subsection (a) if such corporation, institution, society, association or trust had been incorporated or organized at the
date of the transferor's death, shall be likewise exempt if satisfactory evidence of the
incorporation or organization thereof is submitted to the commissioner prior to the time
of the filing by the fiduciary of the return as provided in section 12-359. If such satisfactory evidence is not presented at such time, the transfer shall not be exempt; but, if such
satisfactory evidence is presented to the commissioner within five years after the date
of the transferor's death, the commissioner shall recompute the tax, treating such transfers as exempt, and shall, with the written approval of the Attorney General, present the
matter to the Comptroller for a refund.
(c) In addition to exemptions from the tax imposed by this chapter as provided in
subsections (a) and (b) of this section, exemption from said tax shall be allowed with
respect to any transfer of open space land, as defined in section 12-107b provided (1)
the grantor in the instrument of conveyance restricts the perpetual use of such property
to that of open space land or (2) the grantee submits to the probate court in which the
decedent's estate or trust is pending, a document executed by the grantee with the same
formality as that of a deed, whereby the grantee and the heirs, successors and assigns
of such grantee agree to restrict perpetually the use of such property to that of open
space, which document shall be recorded in the land records of the town in which such
property is located. The provisions of this subsection shall be applicable to the estate
of any person whose death occurs on or after July 1, 1984. The estate of any person
whose death occurs prior to July 1, 1984, shall be subject to the provisions of this chapter
in effect at the time of such person's death.
(d) In addition to exemptions from the tax imposed by this chapter, as provided for
in subsections (a), (b) and (c) of this section, exemption from said tax shall be allowed
with respect to any transfer by gift that was not included in the total amount of gifts
made during a calendar year pursuant to subsection (b) of Section 2503 of the Internal
Revenue Code of 1986, or any subsequent corresponding internal revenue code of the
United States, as from time to time amended.
(1949 Rev., S. 2027; P.A. 84-366, S. 1, 2; P.A. 93-261, S. 2, 4; P.A. 99-173, S. 51, 65.)
History: P.A. 84-366 added Subsec. (c) providing exemption from tax under this chapter for any transfer of land restricted
perpetually to use as open space in the conveyance by the grantor or in a document executed by the grantee; P.A. 93-261
added a new Subsec. (d) to exempt any transfer by gift that was not included in the total amount of gifts made during a
calendar year pursuant to Section 2503 of the Internal Revenue Code, effective July 1, 1993, and applicable to persons
dying on or after July 1, 1993; P.A. 99-173 amended Subsec. (c) to delete requirement that land donated be classified as
open space land for inheritance and succession tax purposes, effective June 23, 1999, and applicable to transfers made on
or after July 1, 1999.
Validity of former classification upheld. 76 C. 235. For decisions construing corporate exemptions under former act,
see 92 C. 101; 95 C. 53. Eligibility of educational institution for exemption; this provision distinguished from section 12-81(7). 115 C. 127. Legislature may withdraw exemption any time before final distribution of estate. Id., 149. Cited. 123
C. 560. Gift to foreign charity exempt only if it would be wholly exempt under laws of other state if made to Connecticut
charity; gifts to Boy Scouts and Girl Scouts, incorporated under federal and D.C. laws respectively, held exempt. 127 C.
441. Cited. 129 C. 274; 141 C. 257. Statute is constitutional and must be strictly construed. No exemption allowed any
charity unless it completely satisfies statutory requirements. Id., 266. Cited. 147 C. 178. Exemption does not apply if a
charitable organization takes under terms of a compromise agreement rather than by will itself. Id., 406. Cited. 168 C. 447.
Cited. 209 C. 429.
Legislature intended exemption from succession tax to be limited to public institutions and charitable organizations
located in the United States. 1 CA 22. Cited. 4 CA 249.
Specific appropriation not condition precedent to right of refund. 9 CS 422. Cited. 44 CS 421.
Subsec. (a):
Cited. 217 C. 457.
Finding of a charitable corporation exempt from succession tax under the statute discussed. 41 CS 469.