A buyer in New Haven is purchasing a home for $850,000. The Connecticut state real estate conveyance tax applies. Which of the following correctly describes the applicable state conveyance tax rate structure for this transaction?
Correct Answer
A) 0.75% applies to the first $800,000, and 1.25% applies to the remaining $50,000.
Under CGS § 12-494, Connecticut's state real estate conveyance tax uses a tiered rate structure for most residential property. The rate is 0.75% on the first $800,000 of the sale price, 1.25% on amounts between $800,000 and $2,500,000, and 2.25% on amounts above $2,500,000. For this $850,000 transaction, 0.75% applies to the first $800,000 and 1.25% applies to the remaining $50,000 ($850,000 - $800,000).
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