HARTFORD - Legislative Democrats are considering convening a special session of the General Assembly this summer to extend higher real estate conveyance tax rates so cities and towns are not left with million-dollar holes in their budgets.

"I hope it's likely," Sen. Eileen Daily, D-Westbrook, co-chairman of the legislature's Finance, Revenue and Bonding Committee, said late Tuesday night. "That's money for municipal budgets."

The regular session ends at midnight Wednesday. Daily said the goal would be to call the General Assembly back for a special session vote on the conveyance tax anytime before the new fiscal year begins July 1.

Larry Perosino, a spokesman for House Speaker James Amann, D-Milford, confirmed a special session for extending the real estate conveyance tax is being considered.

"There has been that discussion," Perosino said. "We like to do as much for the towns as possible and that revenue is already on the table." Before 2003, cities and towns collected $1.10 on every $1,000 of a home or business sale.

The General Assembly then raised that to $2.50 and allowed 18 communities, including Norwalk and Stamford, to raise the tax to as much as $5 per $1,000.

Norwalk residents pay the maximum and Stamford charges $3.50 per $1,000.

The increases were supposed to have expired, but lawmakers have repeatedly extended them.

Earlier this session the Finance Committee approved extending the rates, which are currently scheduled to sunset June 30, another two years.

But last week that proposal and dozens of other bills were shelved when Democrats and Republican Gov. M. Jodi Rell decided not to make changes to the two-year state budget approved during the 2007 session. They are concerned about mounting deficits.

But if the budget is not revised the higher conveyance taxes sunset June 30.

Suddenly mayors and first selectman who had been urging the state to come up with new ways of providing them additional revenue this year were scrambling this week just to salvage the conveyance tax.

The General Assembly could raise the two-year extension as a bill separate from the budget. But the majority for the past two days has been avoiding taking up any proposals that would allow the Republicans to launch a debate on their alternative budget proposal.

The GOP is proposing a budget that uses projected revenues from an early retirement plan to provide some additional funds to cities and towns, nursing homes and non-profits.

Under legislative rules the Republicans can amend their budget to any "germane" piece of legislation and force a debate in the House and Senate. "I don't know if it (the conveyance tax) is germane," Daily said. "I think we don't need to have that fight."

Daily said cities and towns expected the higher conveyance tax would be extended once more and it would be unfair to suddenly strip them of the revenue.

"They had every indication from the legislature it would be continued," she said.

James Finley, executive director of the Connecticut Conference of Municipalities, last night said his organization will be "gratified if legislative leadership finds a way to maintain their commitment to towns and cities."

"It's desperately needed revenue," Finley said.

But Sen. Bob Duff, D-Norwalk, a Realtor who has long opposed the higher conveyance tax rates, said municipalities knew the sunset date was looming in June and should live with it.

"Municipalities may not have prepared themselves, but it was a distinct possibility," Duff said.