Connecticut Senate Bill SB00349

Connecticut 2017 Regular Session

• Introduced: 1/19/17
• Refer: 1/19/17

Caption

An Act Excluding Commissions Paid To Real Estate Brokers Or Salespersons From The Calculation Of The Real Estate Conveyance Tax.

Impact

The bill's passage would directly affect how real estate transactions are taxed, impacting both buyers and sellers. By removing commissions from the conveyance tax equation, individuals engaging in property transactions may see a reduction in the overall costs involved in the sale or purchase of properties. This change is expected to stimulate activity in the real estate market, encouraging more transactions due to lower costs and greater investment in properties by individuals and companies alike.

Summary

SB00349 is an act aimed at amending title 12 of the general statutes to exclude commissions paid to real estate brokers and salespersons from the calculation of the real estate conveyance tax. By doing so, this legislation seeks to mitigate the tax burden associated with property transactions, facilitating a more manageable financial environment for property buyers and sellers in the state. The intention is to create a more favorable economic condition for real estate transactions, which has significant implications for the market as a whole.

Contention

While supporters argue that SB00349 is a necessary measure to support real estate activity and reduce financial strain on property buyers, there may be opposition from entities concerned about the potential decrease in tax revenue. Critics might fear that excluding commissions from the tax calculation could lead to an increase in the tax burden on the remaining taxable items or necessitate re-evaluation of tax policies to maintain revenue levels. As such, the bill may provoke discussions about equalizing tax structures to avoid disproportionate impacts on state finances.