Many sellers are bewildered when they get to the closing table to find they must pay the town an extra 0.25% for no apparent reason. Even if they paid their property taxes they still get zinged with this additional tax. This real estate conveyance tax was originally enacted to provide some temporary funds to struggling towns and then cease to exist in 2004 (that was how they were able to sell it to the public as good bill). However, the State of Connecticut continues to extend it and towns have taken it for granted.
James Finley, the lobbyist for the Connecticut Conference of Municipalities (yes, towns hire lobbyists with your tax money to collect more tax money) states that if Realtors are really concerned about the financial health of citizens we should just lower our commissions.
Mr. Finley is completely out of line. Realtors are concerned because it is our job and responsibility to watch out for consumers. We see their reaction when they find out the government is taking away even more of their money. We as Realtors feel that if you pay your property taxes you are already giving your town everything they need.
If you think this tax is unfair, let your representative know! If you're not sure who your rep is or how to contact them, use this link:
Battle Brewing Over Real Estate Conveyance Tax -- Courant.com
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