More proposed taxes for real estate transactions in Connecticut are on the table. Recently a 50% increase of our Connecticut Property Conveyance Tax was passed to take effect July 1, 2011 for home sellers. Now the State of Connecticut is looking to add an additional tax for buyers!
Currently Connecticut Conveyance Tax for residential properties is as follows:
$800,000 and under: 0.5%. Any portions over $800,000: 1%
New Connecticut Conveyance Tax as of July 1, 2011
$800,000 and under: 0.75%. Any portions over $800,000: 1.25%
We also have a municipal conveyance tax which remains at 0.25%, except for 18 targeted investment communities where the rate is at 0.5% and will remain so. Those targeted investment communities are as follows: Bloomfield, Bridgeport, Bristol, East Hartford, Groton, Hamden, Hartford, Meriden, Middletown, New Britain, New Haven, New London, Norwalk, Norwich, Southington, Waterbury and Windham. Stamford remains at 0.35%.
In a real estate transaction, these conveyance taxes are paid at closing by the seller.
Now the State of Connecticut is working to impose a buyers conveyance tax in addition to the above sellers conveyance tax. Senate Bill 1019 includes language to impose up to a 1% BUYERS municipal conveyance tax on properties over the first $150,000 of purchase price.
At a time when the economy is so fragile and the housing market even more fragile, this new tax could place a new burden on the purchase of residential real estate. Please, contact your representatives and tell them NO to Senate Bill 1019. The recovery of our housing market here in Connecticut may well depend on it. Go to www.cga.gov to find out who your CT House and Senate legislator is if you are unsure. Let them know how you feel!