Submitted to the Finance, Revenue and Bonding Committee

March 24, 2008

By
Dan Keune

My name is Dan Keune and I'm representing the Connecticut Association of REALTORS®. I run a small real estate company in Ellington, and like most of our 19,000 association members I am a homeowner too.

I am here today to speak in strong opposition to Raised Bill No. 5885 which cancels the long, overdue property tax relief scheduled for home sellers on June 30, 2008. We are disappointed that our lawmakers would even consider a fourth extension to sunset the temporary increases in the real estate conveyance tax.

The home sales tax hike was felt by many to be bad tax policy by lawmakers when they passed the temporary increases in 2003. It is even worse public policy in today's troubled real estate market.

I am going to tell you about a recent sale I did.

The Seller had lost her husband
She lost her job
He had no life insurance
She quickly got into financial trouble
The home needed work
It was a difficult sale.

When we got to the closing she got less than was paid in conveyance tax.

I thought this articulate woman was the perfect poster child for our side of the story.

There are many like her and there are many many more with even worse positions.
I asked her to write a letter and call her reps.

She elegantly explained to me why she could not.
To summarize her answer:
She may have lost her husband,
She lost her Job
She lost her money, She lost her home.
But the one thing she did not loose was her pride.

A person should not have to come to Hartford to explain their personal tragedies for you to understand that this is just not a fair tax.

Let's not kid ourselves...This is a property tax, and nothing but a property tax.
This is a tax paid only by those that own property.
And for many it comes at the worst of times.

Here is an example of how the tax affects the sale of a $300,000 home, - not an unusual price in our State:

1)	The Original Town Conveyance Tax @ $1.10 / $1,000	=	$330.
2)	The 2003 Increase of $1.40 / $1,000	=	$420.
3)	The 2003 "Distressed Municipality" Increase of $2.50 / $1,000	=	$750.*
4)	The State Conveyance Tax @ $5.00/$1,000	=	$1,500.

The question has been asked does the tax hurt sales. I think my message is clear.
It hurts people buying and selling real estate, sometimes making a difficult transaction much more unfair and painful.

We would love to see the entire tax end. But we are here today to ask that the temporary increases approved in 2003, be allowed to finally sunset. That is a very reasonable request.

Please consider this testimony when you are deciding what will happen to future home sellers in this difficult market.

I appreciate your time and consideration, and I'd be happy to answer any questions you may have.