Title: American Property Act
Policy area: Taxation

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.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9585 Introduced in House (IH)]

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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.
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