Letter: Conveyance tax increase would penalize the sellers
To the Editor:
When will it end? Governor Malloy’s proposed budget includes an increase to the conveyance tax for the sale of real estate. What does that mean exactly? If you sell your house, the government taxes you on the sale price. Right now in Connecticut, for all sales $800,000 or less, we pay a .75% tax on the sale price. For all sales over $800,000, we pay .75% on the first $800,000 and then 1.25% on the rest. But the governor’s proposed budget wants to increase those rates to 1% and 2%, respectively.
By increasing the sales tax on real estate, they are effectively penalizing homeowners and landlords for selling their property. This is another example of why, even though we live in a very desirable state, people and companies are leaving this state. This is no way to get them back. This is no way to stimulate the economy.
When real estate sells, jobs are created. When people are buying and selling it means business for banks and mortgage companies, appraisers, attorneys, inspectors, etc. It creates business for all sorts of tradespeople (plumbers, painters, electricians, designers, home remodelers). The shops benefit from sales of home décor and furniture, household goods and kitchen wares. If the cost to sell is too high, and real estate sales slow down, all of these businesses will be affected and the state economy will have no chance.
Are you a homeowner, a shop owner, a business owner? Please reach out to your local legislator to make sure they know how this will affect you. Because this will affect you.