In that news report, Looney said, “It is a very slight increase spread very broadly across the state, so it’s not something that would be burdensome on anyone … And yet, it would create a substantial pot of money to address some of our inequities and problems.” Tammy Felenstein, president-elect of the Connecticut Association of Realtors, told News 12 that the median asking price in Fairfield County is more than $650,000. In many Connecticut communities, a home with a market value in the $430,000 range is not considered a high-end property.The new mansion tax would also apply to commercial property.While that may not seem significant to some, at least two factors are causing concern. The added tax on a home with a market value of $1 million-thus an assessed value of $700,000-would be $400 for the $400,000 difference between $300,000 and $700,000.For example, the new tax on a home with a market value of $500,000, which has an assessed value of $350,000, would be $50 a year $1 for each $1,000 in value for the $50,000 difference between $300,000 and $350,000.Only the part of a home’s assessed value exceeding $300,000 would be subject to a new annual tax of $1 per $1,000 of value.(Assessed value is 70 percent of market value.) The new tax would be imposed on homes with an assessed value of more than $300,000, which translates to a market value of approximately $430,000.Whatever one thinks of that socio-economic political philosophy, here’s how Connecticut property owners would be impacted: fiscally challenged cities like New Haven and Bridgeport-and argues the roughly $74 million a new mansion tax would reap from “the rich” communities could redistributed to “the poor” towns and cities. Looney cites the economic disparity reflected in the tax rates of Connecticut municipalities-affluent Gold Coast towns like Greenwich and Darien vs. Martin Looney, the Senate president pro tempore whose district includes parts of New Haven, Hamden and North Haven, is proposing the new tax at a time when Connecticut faces deficits of $1 billion in each of the next two fiscal years, according to The Hartford Courant, but also when the state’s rainy day fund is expected to reach $3.5 billion, a record. This proposed new tax would come on top of annual property taxes that homeowners pay to the municipality in which they own property-and it follows a different type of mansion tax that took effect July 1, 2020, which increased the conveyance tax on homes selling for more than $2.5 million. The odds are against implementation, but at least one Democratic leader in the Connecticut General Assembly is proposing a new annual “mansion tax” on homes with a market value exceeding $430,000. The hearing, beginning at 9 a.m., may be be viewed on YouTube. Sign up here to offer testimony or comments. 171, is scheduled to be held via Zoom on Monday, March 15. UPDATE: A General Assembly Finance Committee public hearing on the proposed new “mansion tax,” set forth in Senate Bill No. (Hank) AndersonĬramer & Anderson Center for Mediation & Alternative Dispute ResolutionĮstate Planning, Probate & Trust Administration What to Expect from Our Attorneys and StaffĪ Tribute to Founding Partner Henry B.
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