Connecticut Senate Bill SB00064

Connecticut 2016 Regular Session

• Introduced: 2/9/16
• Refer: 2/9/16

Caption

An Act Phasing Out The State Portion Of The Real Estate Conveyance Tax.

Impact

If SB00064 is enacted, it will amend chapter 223 of the general statutes, directly affecting the state’s revenue from real estate transactions. The reduction of the conveyance tax is expected to encourage home sales, potentially leading to increased activity in the real estate market. Proponents of the bill argue that this tax cut could stimulate economic growth by allowing homeowners to retain more financial resources, thereby increasing their ability to invest in home improvements or other local businesses.

Summary

SB00064 is a legislative bill introduced by Senator Boucher aimed at providing tax relief through the gradual phase-out of the state portion of the real estate conveyance tax. The proposal suggests a reduction of the tax by 1% each year, beginning in 2016. The overall goal of the bill is to alleviate the financial burden on homeowners and facilitate easier property transfers within the state. This kind of financial relief could stimulate the real estate market by making it more affordable for buyers to purchase homes.

Contention

The bill may face opposition from those who argue that phasing out the conveyance tax could significantly impact state funding for essential services. Critics might be concerned that reducing revenue from this tax could lead to budget shortfalls, consequently affecting public services that rely on these funds. Additionally, debates surrounding the equity of tax relief measures may arise, particularly questioning whether the benefits disproportionately favor wealthier individuals or communities in the state.