Lawmakers Fail To Extend Municipal Conveyance Tax

by Christine Stuart | May 6, 2010 3:28am
(2) Comments | Commenting has expired
Posted to: Local Politics, State Capitol

In a flurry of last minute activity, the Senate failed to give final passage to bill that extends the municipal conveyance tax, which had passed the House 121 to 27 earlier Wednesday evening.

Given a free pass this year by the Realtors lobby that generally opposes the tax, the Senate failed to put it on the consent calendar which passed right before midnight.

Municipalities rely on the tax, which according to the fiscal note brings in about $20 to $25 million a year for struggling municipalities.

Derek Slap, spokesman for Sen. President Donald Williams, said it was not intentional and it’s possible they will be able to extend the municipal conveyance tax when they return for a veto session.

The tax is set to expire June 30 and without it every city and town in the state could run a deficit.

(2) Comments

posted by: City Hall Watch | May 6, 2010  9:12pm

The legislature must have had a momentary pang of conscience. They’ve promised to address that as soon as possible.

posted by: That Guy | May 7, 2010  9:22am

Unless it’s in the next few days the damage will have been done.  This mistake could cost jobs and local prop tax increases. 

It’s illegal for cities and towns to include revenue in their budgets that is not secured…  Many communities need to adopt or present their budgets for votes in the next two weeks.  With out immediate action the conveyance revenue must be left off the table.

So not only did Leadership in Hartford fail to deal with the mounting heap of unfunded mandates to munis, they screwed them even further in the last hour of their delirium.