‘‘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 RES-
IDENTIAL REAL PROPERTY. 
‘‘(a) IN GENERAL.—In the case of any specified for-
eign person which owns any specified under-utilized resi-
dential 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 re-
spect to any taxable year, any specified residential 
property located in the United States which is occu-
pied as a dwelling unit for less than 180 days, as 
determined pursuant to paragraph (2). 
‘‘(2) DETERMINATION OF OCCUPANCY.— 
‘‘(A) IN
GENERAL.—Occupancy of speci-
fied 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 
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period of at least one month in the taxable year 
during which a qualifying occupant has contin-
uous occupancy of a dwelling unit. 
‘‘(C) QUALIFYING OCCUPANT.— 
‘‘(i) IN GENERAL.—The term ‘quali-
fying 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 quali-
fying 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 residen-
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tial units or less, or a part of a building that is a 
semi-detached house, rowhouse unit, residential con-
dominium 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 sec-
tion, 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 prop-
erty (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 
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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 prop-
erty is so sold or otherwise transferred.’’. 
(b) CLERICAL AMENDMENT.—The table of sub-
chapters 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. 
Æ 
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