Submitted to the Select Committee on Veterans Affairs

February 25, 2010

From
Lora Merrill
Woodstock , CT

I have been the wife of an active duty member of the United States Coast Guard for over twenty years. I am also a full time Licensed Real Estate Professional.

The reason I would like to have a say in the matters at hand is I work in a profession that serves the public, and I see first hand how the conveyance tax is putting a burden on the active duty service members and the spouses of fallen soldiers.

The active duty member receives orders from the United States of America that they must move to a new location. When these orders are received we do not ask questions. It is a part of the job that we do in order to serve our country. There are many burdens on the part of the American family when it comes to a move. The active member may have to move ahead without family, and the spouse stays behind to sell a home or finish out the school year with children. The stress alone is enough for a person to handle while the serviceman is juggling two households to stay financially afloat.

Then the State of Connecticut has the extra burden of adding a conveyance tax to them when they are trying to sell a property, and in most cases at a loss. Most active duty members of the Armed Services move every to three to four years.

Many choose to purchases homes and become a vital part of the community. So, why are we penalizing them for doing their duty and supporting their local economy?

Here are a few examples. In March 2009 my clients, an active duty member of the United States Navy out of Groton Ct, received his orders to move. I listed his home on the market to sell (in a down market) at a loss in excess of $50,000.00. He could not do a short sale on his home due to his security clearance with the Navy. He was not willing jeapordize his years in service or his ob. He moved to his next unit while the family stayed behind. I marketed his home. When a sale was imminent on his home, there would be a $50,000.00 shortage. His spouse wrote letters and contacted Senator Dodd's office many times and verbally was in contact with his assistant.

To no avail there was nothing that could be done for my client at the time. My client had to borrow $50,000.00 from Navy Federal Credit Union so they could close on their home and move to the next duty station.

To add to this, the State of Connecticut conveyance tax had to be paid at closing! This seems to be an unfair burden put upon the families. They do not get relocation packages many corporate Americans may receive when they move from location to location. The private sector has financial means in place for the most employees, where the United States Government seems to put this burden on the military to financially handle this on their own.

This was just one of many cases. Other examples:

> June 2008 a Navy couple moving from Groton to Seattle had a $150,000 short sale on their home.
> July 2008 a Single Navy Officer moving from Groton to Virginia incurred a $50,000 short sale on his home.
>August 2008 a Navy Officer moving from Montville to San Diego had a $ 6000.00 short sale.
>November 2008 a Navy couple (my assistant) was moving from Plainfield to Hawaii. She had an $11,000.00 short sale.

And many more short sales took place between 2008 and 2009. Many clients that are in this situation or clients that have moved are still paying their debt that they incurred in Connecticut for being part of our Community.

If my husband where to receive orders today, I too would become one of the many statistics.

So, consider removal the conveyance tax for those who serve our Country. You as Legislators need to help Connecticut find a solution. It is time we stopped bleeding our service men and women and help them with this burden.

Respectfully,

Lora Merrill

Eastern Connecticut Board of Realtors
William Raveis Real Estate