SUPPORT WITH CHANGES!

Submitted to the Insurance and Real Estate Committee

February 28, 2008

By
Barbara Weinberg

Good morning. My name is Barbara Weinberg. I'm a principal of RE/MAX East of the River, past president of the Manchester Board of REALTORS®, and today I'm representing the 19,000 members of the Connecticut Association of Realtors.

My comments are directed at Senate Bill 274: Concerning the Real Estate Conveyance Tax. As you know, our current State law provides for the expiration - -or "sunset" -- of the extra tax on folks selling their homes or business properties. That rollback is scheduled for June 30th of this year.

The emergency tax hike was enacted in 2003 to tie municipalities over for a very limited period of time (originally 15 months) during a State fiscal crisis. Unfortunately, municipal lobbyists have succeeded in persuading State legislators that their emergency has continued unabated, even while all around them the housing market has slowed and it is really the property sellers who are often facing true emergencies.

Although the Connecticut Association of REALTORS® continues to support the sunset written in current law, we also support the intent of Senate Bill 274 to lower the overall conveyance tax rate on property sellers by reducing the State portion in exchange for letting towns make their higher rate permanent. However, it is necessary to make changes in the bill to assure that ALL property sellers obtain the intended relief.

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As presently drafted, SB 274 only lowers the tax for some residential sales and for no commercial transfers. This needs to be corrected. The bill also leaves out relief for people who are delinquent in their mortgage payments and suffer a conveyance tax when the bank takes their property back.

This is easily remedied by tacking-on subsection (b) as revised by our substitute language (attached). In this way you'll assure equitable treatment in the sale of residential properties of $800,000 or more, very modest beauty salons, bakery shops and other business properties, as well as those suffering the loss of homes.

If it would be helpful to Senator Crisco and Representative O'Connor, we would be willing to meet with them and the co-chairs of the Finance Committee to address any concerns about reducing the State Conveyance Tax.

Finally, beginning today a new media campaign is being launched over the radio and other outlets to make this "hidden" property tax far more visible to the public. You can get more information by visiting MyMoney-MyHouse.org.

I'll be happy to take questions.