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Realtors went to Hartford to fight against it, but legislators on the finance, revenue and bonding committee passed a bill Thursday to extend a tax on real estate sales that was set to expire in July. The bill pitted Realtors against cities and towns, who benefit from the tax by an estimated $43 million a year. "Now isn't the time to cut their funding sources," Sen. Eileen M. Daly told the Connecticut Mirror.
Realtors argued that the tax hits homeowners hard in a slumping economy, especially families whose homes are in foreclosure or who are upside down - -owing more on their mortgage than their home is worth. "Like any tax that gets put into place, it doesn't leave," said Norwalk Realtor Linda Cappello of Cappello Realty Group. "As far as what it means for the folks in Norwalk, it would mean the same as it does to any seller, anywhere--higher closing costs. I do not believe it will make or break a deal, but it would have been nice it what was promised, the sunset date, was delivered."
Legislators ultimately decided to amend the bill to exempt homeowners in foreclosure and those upside down from the tax, which would be extended to 2012.
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