Home values could fall 10% or more, Sen. Murphy says
Property values in Fairfield County could fall by 10% — or even more — under the GOP Tax Plan signed into law by President Donald Trump last month, U.S. Sen. Chris Murphy told homeowners and community leaders at a Connecticut Association of Realtors meeting Friday, Jan. 5.
“Sat down with Connecticut homeowners, community leaders and @ctrealtors to talk about the impact the GOP tax law will have on Connecticut home values, which could fall by more than 10% as a result of the law,” said Sen. Murphy, a Democrat,in a Tweet sent at 1:56 p.m. Friday.
The GOP tax bill particularly affects high-tax blue states, because it places $10,000 cap on the amount of all state and local taxes that filers can deduct from their federal tax returns. The cap applies to filings, not individuals, so couples filing jointly are still held to the $10,000 cap.
As the changes to existing tax laws went into effect on Jan. 1, the town tax collector’s office was reportedly swamped with residents attempting to pre-pay as much of next year’s taxes as possible.
Ridgefield Tax Collector Jane Berendsen-Hill said her office had been inundated with calls in the days leading up to the change.
“You’ll have a distortion in December — all these people frantically running around trying to pay taxes through June,” she said at the Dec. 19 Board of Selectmen meeting.
Online residents were critical of the Sen. Murphy’s suggestion that the tax law was to blame for falling Connecticut home values. Several comments put the blame squarely on the Connecticut Governor Dannel Malloy, and the state’s mired budget crisis, which only ended after the governor signed a new budget into law on Halloween night — after the state legislature sent the bill to his desk with a veto-proof majority.
Speaking to The Press on Jan. 2 about the new tax law, Ridgefield First Selectman Rudy Marconi ran the numbers for a typical Ridgefielder making about $140,000 per year in household income.
After state income taxes of 6%, or $8,400, the resident would still have to pay around $12,000 in real estate taxes, Marconi explained. So under the new tax plan, that resident could only deduct $10,000, and would effectively be left with a loss of about $10,000 from years past.
“The point is,” Marconi said, “even the more wealthy people, all of us who are lucky to live here, are bearing the brunt of this.”