Connecticut Senate Bill SB01019

Connecticut 2011 Regular Session

• Introduced: 2/17/11
• Refer: 2/17/11
• Report Pass: 3/8/11
• Refer: 3/17/11
• Report Pass: 3/23/11
• Refer: 5/11/11
• Report Pass: 5/17/11
• Refer: 5/20/11
• Report Pass: 5/26/11

Caption

An Act Authorizing A Buyer's Conveyance Tax On Real Property.

Impact

If enacted, SB01019 would have a significant impact on municipal finance, allowing local governments to generate revenue specifically for environmental and infrastructure improvements. This may lead to enhanced local development initiatives and promote sustainable practices within communities. Additionally, it may incentivize transactions relating to the preservation of open space, potentially fostering more environmentally-friendly development patterns across the state.

Summary

SB01019 proposes the enactment of a buyer's conveyance tax on real property transactions, enabling municipalities to impose a tax of up to one percent on the portion of the transaction exceeding $150,000. The revenue collected from this tax is designated for various purposes, including the purchase of development rights, brownfield remediation, water treatment, energy conservation, and the preservation of green spaces. This bill aims to provide municipalities with the financial means to invest in vital environmental and community projects that fall under local jurisdiction.

Sentiment

General sentiment around SB01019 appears to be supportive among environmental advocates and local government representatives who see this tax as a valuable tool for funding crucial projects. However, there may be opposition from those who fear potential negative effects on real estate transactions. Some stakeholders might express concern regarding the additional burden placed on buyers, particularly in higher-cost housing markets, where the tax could be seen as a deterrent to home purchases.

Contention

Despite the potential benefits of SB01019, notable points of contention include the implications of taxing property buyers and how this could affect the real estate market. Critics may argue that imposing a tax could exacerbate housing affordability issues, particularly for first-time homebuyers. Supporters counter that the long-term environmental and economic benefits derived from the funded projects would ultimately outweigh concerns about initial costs to property buyers.