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How much has the Connecticut State Conveyance Tax Increased?
According to a legislative bulletin just released from the Connecticut Association of Realtors on May 5, the following changes are effective for conveyances occurring on or after July 1. They result from approval by the Legislature and Gov. Dannel Malloy of Senate Bill 1239 (the state budget).
The Connecticut Association of Realtors vigorously opposed these tax increases and commends those 17 senators and 67 representatives who voted in opposition to Senate Bill 1239. One caveat is, questions remain as to whether SB 1239 is a truly balanced budget since state employee union concessions remain unidentified or agreed to. Accordingly, depending on those outcomes, the possibility exists that the Legislature could revamp these or other taxes in the next several weeks. This is what has been enacted and signed into law as of now. Municipal Conveyance Tax Changes The termination or sunset date of the higher current rate is revoked. The rollback scheduled for July 1 is permanently canceled. The practical effect in most towns is the rate continues at 0.25 percent except for the 17 targeted investment communities where the rate remains at 0.5 percent: Bloomfield, Bridgeport, Bristol, East Hartford, Groton, Hamden, Hartford, Meriden, Middletown, New Britain, New Haven, New London, Norwalk, Norwich, Southington, Waterbury and Windham. The rate will be 0.35 percent in Stamford. State Conveyance Tax Changes The nonresidential rate goes from 1 percent to 1.25 percent. The residential rate for the portion of value up to $800,000 goes from 0.5 percent to 0.75 percent. Any portion more than $800,00 goes from 1.0 percent to 1.25 percent.Proposed Buyers Conveyance Tax This legislation, originally defeated in committee, was resurrected as an amendment to Senate Bill 866 (concerning Wine Festivals) and awaits action in the Senate. The Connecticut Association of Realtors continues to lobby against it.
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