SUMMARY

The present rates of the real estate conveyance tax were enacted to protect property taxpayers - residents and businesses - from the impact of cuts in state aid to their communities - and that protection is still needed.

If the present rates are not extended, local governments will lose at least $40 million per year in needed non-property tax revenue. Allowing these rates to sunset would constitute a tax shift from the state level to the local level. Without that revenue, local property taxes will rise and local IMPORTANT MUNICIPAL REVENUE - AND PROPERTY TAX RELIEF services will be cut. There will be even more pressure on the General Assembly to provide increased grants to towns and cities to make up for this revenue loss.

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