Sellers should get a better picture of the approximate proceeds from the sale of their property and laying out the numbers specific to conveyance taxes would be helpful. To simplify the Senate Bill No. 501, Public Act No.10-1 wherein Subsection (a) of Section 12-494 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):
Residential Municipal Tax State Tax Total
Purchase Price $800,000 or
less but more than $2000 0.25% 0.75% 1%
Portion over $800000 0.25% 1.25% 1.5%
The authority for certain designated municipalities, known as target investment communities, to impose an additional municipal real estate conveyance tax rate (at a rate of up to 0.25%) is still in effect. Targeted Investment communities include the towns of Bridgeport, Bristol, East Hartford, Groton, Hamden, Hartford, Meriden, Middletown, New Britain, New Haven, New London, Norwalk, Norwich, Southington, Stamford, Waterbury and Windham. NOTE: Check with your lawyer or town if your property is within the designated municipalities.
Transactions exempted from conveyance taxes such as foreclosure by sale or deed in lieu of foreclosure is outlined under the Public Act No. 10-1