The legislature’s finance, revenue and bonding committee passed a bill Thursday that would extend the current conveyance tax rates until 2012. It would also expempt homeowners who are facing foreclosure or who have homes worth less than what they owe from the tax. <\/p>\n
The committee vote was 35-15.<\/p>\n
Most municipalities receive 0.25 percent of a property’s sale price. More distressed communities, such as Hartford and New Haven, get 0.50 percent of the sale price. <\/p>\n
Prior to 2003, the conveyance tax was 0.11 percent. The tax was increased in 2003 in the midst of a state budget deficit, but was set to revert back to the original rate the following year. The General Assembly, however, has consistently extended the tax increase, and now cities and towns rely on the revenue. <\/p>\n
The increases are now set to expire at the end of this fiscal year. If they do, it would leave a hole in municipal budgets. The rate would drop to 0.11 percent for most cities and towns and 0.36 percent for distressed communities. <\/p>\n
The conveyance tax has become a controversial issue at the Capitol, and special interest groups heavily lobby lawmakers about the tax. <\/p>\n
The Connecticut Conference of Municipalities is in favor of extending the increases and would like to see the increases made permanent, but the Connecticut Association of Realtors disagrees. Realtors say the increases were never meant to be a revenue stream for cities and towns, and they say that the tax means double taxation for homeowners. <\/p>\n
There is also a state conveyance tax that is 0.5 percent or 1 percent of the sale price depending on the type of property. <\/p>\n","protected":false},"excerpt":{"rendered":"
The legislature’s finance, revenue and bonding committee passed a bill Thursday that would extend the current conveyance tax rates until 2012. It would also expempt homeowners who are facing foreclosure or who have homes worth less than what they owe from the tax. The committee vote was 35-15. Most municipalities receive 0.25 percent of a property’s sale price. More distressed communities, such as […]<\/p>\n","protected":false},"author":5513,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-472214","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/472214","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/5513"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=472214"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/472214\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=472214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=472214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=472214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}