The Finance Committee today scaled back a bill that would have permanently kept the real estate conveyance tax paid by sellers of property worth more than $2,000. The tax is $5 on every $1,000 of value and lawmakers today said it often surprises sellers when they are suddenly asked for it at a closing. It was first enacted during the fiscal crisis of 2003 and like so many things, created a flow of revenue of which lawmakers remain enamored. Rep. David Scribner, R-Brookfield, a member of the committee, admitted that towns and cities also like the revenue, which they share with the state. “I could argue that it’s neither dependable or reliable,” he said. “I think we should consider, as we move forward, a way to replace that source of revenue.” Instead of making it permanent, the committee approved substitute language that would extend it only two years after its original sunset of July 1 this year
Sen. Andrew Roraback, R-Goshen, ranking member of the committee, succeeded in gprompting an amendment that would allow “under water” sellers, who owe more on their homes than they can get in its sale, to be among those exempt from the conveyance tax. He had a stack of copies of the amendment that he offered to Democratic co-chairs Rep. Cam Staples of New Haven and Sen. Eileen Daily of Westbrook. When he asked about the procedure for handing them out, the Democrats smiled at the straight line, which he immediately picked up on.
“I didn’t ask the chairs what I could do with the amendment,” he quipped. The bill, which ultimately included language from a Banks Committee bill on underwater property sellers, moves on to the Senate.
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