Connecticut Senate Bill SB00598

Connecticut 2013 Regular Session

• Introduced: 1/24/13
• Refer: 1/24/13

Caption

An Act Eliminating The Real Estate Conveyance Tax Payable To The State.

Impact

The elimination of the real estate conveyance tax may have significant implications for both state revenue and the housing market. Proponents of the bill argue that removing the tax could promote growth in the real estate sector by encouraging more property transactions, thereby making it easier for buyers and sellers to engage in the market without the added burden of taxation. This could lead to increased activity in property sales, potentially benefiting state and local economies from secondary effects, such as increased spending on home improvements and services related to moving.

Summary

SB00598 is a legislative act aimed at eliminating the real estate conveyance tax payable to the state. The bill proposes to repeal existing statutes that impose a tax on deeds and other legal instruments used in the transfer of real property. This tax, which has been applied when the consideration for property conveyed equals or exceeds two thousand dollars, is intended to provide revenue for the state but will be removed under this act. The effective date for this change is set for July 1, 2013, applying to all conveyances occurring after this date.

Contention

However, there are notable concerns regarding this bill. Critics argue that the removal of the conveyance tax could lead to a shortfall in state revenues, which have traditionally been bolstered by this tax stream. The funds generated from the real estate conveyance tax have historically contributed to various public services and infrastructure projects. As such, opponents contend that the bill might disproportionately benefit the wealthy segments of society who can afford high-value transactions, while potentially funding gaps could impact programs serving lower-income families and communities.