Under Connecticut's real estate conveyance tax law (CGS § 12-494), which of the following statements about the conveyance tax is NOT correct?
Correct Answer
D) The conveyance tax rate of 0.75% applies to the entire sale price regardless of the amount
Option D is NOT correct. The 0.75% rate does not apply to the entire sale price regardless of amount. Under CGS § 12-494, Connecticut uses a tiered rate structure: 0.75% applies only to the first $800,000; 1.25% applies to amounts between $800,000 and $2,500,000; and 2.25% applies to amounts above $2,500,000. Applying 0.75% to the entire price is a common but incorrect approach.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Depreciation is an accounting method of allocating the cost of an asset over its useful life, allowing investors to deduct a portion of the asset's cost each year.
Highest and best use is an appraisal concept that identifies the most profitable, legally permitted, physically possible, and financially feasible use of a property. It is the foundation of all property valuation.
Homestead portability allows homeowners to transfer a portion of their accumulated homestead tax savings to a new homestead in the same state.
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