Proposal Would Tax Home Buyers
Monday, Jun 6, 2011 | Updated 11:24 AM EDT
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A bill being debated at the state Capitol would tax Connecticut homebuyers as well as sellers.
A new tax proposal is sending shock waves through the real estate industry.
A proposal being debated by state lawmakers would give municipalities the option of taxing property buyers up to 1 percent of the price of real estate over $150,000, according to the New Haven Register.
Currently, only sellers pay a conveyance tax.
The Senate and House would have to pass the bill before the end of the Legislative session on Wednesday for the tax to take effect July 1.
State Sen. Edward Meyer, who introduced the measure, said it’s unlikely it will pass, given the uncertain state of the economy.
“This bill, in a sense, is property tax relief,” the Guilford Democrat told the Register. “It gives the towns an additional source of revenue for responsibilities they have to do: deal with contaminated land, brownfield remediation, storm water controls. It also deals with energy conservation in our towns, acquisition of open space.”
The Connecticut Association of Realtors is fighting the tax and said that this will put the price of a new home out of reach for first-time buyers.
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