That's correct.
There are certain exceptions for life circumstances. If the sale occurs as a result, for example, of a death or disability, birth of a child, a new job, divorce, or certain other exceptions tied to personal safety, or destruction of the property, then those are situations where this rule would not apply.
But, yes, the general rule is that if somebody acquires ownership of a residential property and sells it within less than one year they will be subject to this rule.