Sen. Hwang: Give Realtors a Connecticut They Can Sell

Give Realtors a Connecticut They Can Sell

 By Sen. Tony Hwang

As your State Senator and a Connecticut Realtor, I want you to know that Democratic state legislators are considering accepting Governor Malloy’s plan to significantly increase taxes on real estate sellers (conveyance taxes).

Governor Malloy’s latest proposed budget includes an increase to the conveyance tax for the sale of real estate. When you sell your home, the state taxes you on the sale price of the property. Currently, for all sales $800,000 or less, sellers are charged a .75% tax on the price. For all sales over $800,000, sellers pay .75% on the first $800,000 and then 1.25% on the overage.  The Governor’s proposed budget would increase the rates to 1% and 2% respectively.

Democratic legislators need to remember the importance of the housing market to the overall state economy.  This new tax will make it even harder and more costly for people to buy or sell a home. The fragile economy will not recover until the housing market and valuation recovers. As legislators and policymakers, we should be making it easier for families to buy a home, not harder and more expensive.

By increasing the sales tax on real estate, state Democrats would effectively penalize homeowners and landlords for selling their property. This is another example of why, even though we live in a wonderful state, people and companies are leaving. Just a day ago, an innovative biotechnology company that was given major state economic incentives decided Connecticut was not the proper ecosystem for them.  The company plans to move to Boston, just as GE did.

Another tax is not the way to entice corporations to move here and stimulate our economy.  It sends the wrong message.

In Fairfield County, the impact is especially devastating as there will be expanded tax increases for the portion of the home sale over $800,000.  This tax would be especially burdensome to our residents due to our highly competitive property values. There are many benefits to the community when real estate sells. Jobs are created.  Banks, home improvement contractors and furniture stores all benefit from a new home sale.  This additional tax would have a negative impact on all of these businesses and the Connecticut economy.
So please, let your voices be heard.  Get active.  Get loud.

Now is the time.

Let the Governor, the Democratic leadership and your state representatives know that taxing home sales will only further damage Connecticut’s already fragile economy.

*Sen. Hwang represents Easton, Fairfield, Newtown, Weston and Westport.  He serves as Co-Chair of the Connecticut General Assembly’s Housing Committee. He can be reached at [email protected] or 800-842-1421. On the web:www.SenatorHwang.com.