OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http: //www. cga. ct. gov/ofa

sHB-5885

AN ACT CONCERNING THE MUNICIPAL SHARE OF THE REAL ESTATE CONVEYANCE TAX.

OFA Fiscal Note

State Impact: None

Municipal Impact:

Municipalities

Effect

FY 09 $

FY 10 $

All Municipalities

Revenue Gain

35. 8 million

36. 8 million

Explanation

Under current law the municipal real estate conveyance tax rates are scheduled to decrease from 0. 25% to 0. 11% beginning July 1, 2008. The bill extends the increase in the tax rate for an additional two years, until July 1, 2010. Therefore, municipalities will retain about $35. 8 million in FY 09 and $36. 8 million in FY 10 that they are expected to lose under current law.

The Out Years

Beginning in FY 11 the tax rate will be reduced from 0. 25% to 0. 11% which will result in a loss of revenue to municipalities.