Herbert Rosenthal, First Selectman of Newtown and president of CCM
Municipal leaders from the Connecticut Conference of Municipalities, the statewide association of towns and cities, are hear today to urge the Governor and General Assembly to oppose any efforts that would cut the rates of the real estate conveyance tax for towns and cities.
Unless the State leaders act, the rates will drop to pre-2003 levels on July 1, costing towns and cities at least $40 million annually. A coalition of realtors, home builders and developers have been fighting relentlessly to insure that the rates drop at the expense of local property taxpayers.
In my town, the increased municipal share of the real estate conveyance tax means $510,000 in revenue - funding that is derived from neither property tax revenues or state aid. That is a win-win proposition for the towns and for the State. Without this revenue we would have to raise property taxes, cutback local services, or both.
In order to blunt the impact of mid-year budget cuts to municipalities made during the 2002-2003 fiscal year, the General Assembly and Governor Rell raised the local portion of the real estate conveyance tax. Since then, state aid has increased, but funding for some of those municipal aid programs has never been restored to their pre-2003 levels.
It’s not a “bonus” for municipalities, nor was it intended as one-shot revenue, both of which were claimed at a hearing last week. It’s revenue that municipalities need and it was always intended for that purpose.
Cities and towns use the current conveyance tax rates to, among other things, replace previously lost/reduced state aid, support fire budgets, hire new police officers and teachers, repair roads and pay for street lights, help fund pension and health insurance costs, and more.
Unless the Governor and the General Assembly hold the line and act to pass legislation that retains the municipal share of the real estate conveyance tax, the State will force property tax hikes and local service cutbacks across the state.
Connecticut Conference of Municipalities
900 Chapel Street, 9th Floor
New Haven, CT 06510
Phone: (203) 498-3000
Fax: (203) 562-6314
