American Property Act

To 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 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 (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 (C) Qualifying occupant (i) In general The term qualifying occupant (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 (c) Estimated value For purposes of this section, the term estimated value (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 (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 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.

Summary: 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.