Connecticut House Bill HB06412

Connecticut 2023 Regular Session

• Introduced: 1/23/23
• Refer: 1/23/23

Caption

An Act Concerning Real Estate Conveyance Tax Remittances And Affordable Housing Plans.

Impact

The introduction of HB 6412 seeks to promote the development of affordable housing by providing financial relief to municipalities engaged in such efforts. By enabling these local governments to retain a portion of the real estate conveyance taxes, the bill is designed to help them allocate more resources towards their affordable housing projects. This could lead to increased construction of affordable homes, benefiting lower-income residents and addressing housing shortages in communities.

Summary

House Bill 6412, titled 'An Act Concerning Real Estate Conveyance Tax Remittances And Affordable Housing Plans,' proposes amendments to Title 12 of the general statutes. The bill specifically allows municipalities that submit an affordable housing plan under Section 8-30j to reduce the amount of real estate conveyance tax required to remit to the state by ten percent over a five-year period. This measure is aimed at incentivizing local governments to develop and maintain affordable housing initiatives.

Contention

Potential points of contention regarding this bill may revolve around its implications for state revenue. Some critics may argue that allowing municipalities to keep a portion of the conveyance tax could affect state funding for services that rely on these tax revenues. Additionally, there may be concerns regarding the effectiveness of the affordable housing plans and whether this financial incentive will translate into meaningful progress in housing availability. Proponents will need to demonstrate that the benefits of increasing affordable housing outweigh the potential drawbacks of reduced state tax revenues.