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Conveyance Tax Increase Effective 07/1/2011 in Connecticut

By
Mortgage and Lending with Atlantic Home Loans NMLS #99279

The Connecticut General Assembly adjourned its 2011 regular session on Wednesday, June 8th. The following material highlights a number of important pieces of legislation that were enacted in the session.

Conveyance Tax

  • Public Act 6: Section 102 of this act increases the state’s portion of the tax by ¼ of one percent. This increase will go into effect on July 1, 2011, and will be applicable to conveyances occurring on or after that date. The act was signed by Governor Malloy on May 4, 2011.
  • Residential property (and vacant land) will thus be taxed at ¾ of one percent (instead of ½ of one percent).
  • Residential property that is conveyed for more than $800,000 (the so called “mansion tax”) will be taxed at ¾ of one percent up to that amount and then 1 and ¼ of one percent on the excess.
  • Nonresidential property that is currently taxed at 1% will instead be 1 and ¼ of one percent.
  • Conveyances to a financial institution of property on which mortgage payments have been delinquent for not less than six months will be taxed at ¾ of one percent, instead of ½ of one percent.

Foreclosures

House bill 6351: This bill extends the sunset date of the foreclosure mediation program from July 1, 2012 to July 1, 2014. The bill also extends the program to include the owners of property occupied by a religious organization.

Recording Fees

Public Act 48: Section 134 of this act amends Connecticut Gen. Stat.7-34a to make permanent the ten dollar surcharge on recordings that was first established in 2009.

Comments (2)

Anonymous
Chris

Thanks for the info. Who pays the tax, buyer or seller?

Nov 07, 2011 02:39 PM
#1
Patricia Leary
Atlantic Home Loans - Hamden, CT
Homebuyer Specialist, Conv, FHA,VA,CHFA, 203K,USDA

Hi, The seller pays.

Nov 08, 2011 12:17 AM