Date: Fri 26-Mar-1999

Publication: Bee

Author: CURT

Quick Words:

open-space-legislation

Full Text:

Town Leaders, Environmentalists Support Open Space Tax Bill

HARTFORD -- In light of heavy development and high land prices in some parts

of the state, environmentalists and community leaders last Friday supported a

bill to fund land preservation through a new tax.

The proposed real estate conveyance tax of one-half of 1 percent of the sale

price would be levied by towns for open space acquisition, supporters of the

bill told the Finance, Revenue and Bonding Committee.

Realtors and home building groups opposed the bill, saying it would drive up

housing prices, hurt the state's economy and would be unfair to home sellers.

The tax would be in addition to current state and local real estate conveyance

taxes.

Newtown First Selectman Herb Rosenthal said this week that the plan would help

towns raise money to take advantage of a state law enacted last year designed

to preserve open space throughout Connecticut. The state-funded bonding and

grants to communities for this purpose require matching money from

municipalities.

"I don't think [the added conveyance tax] would change the ability of people

to purchase a home in Newtown. If someone is buying a $300,000 home, they

aren't going to balk at paying $301,500," Mr Rosenthal said. He also suggested

that the preservation of open space in town would make Newtown even more

attractive to home buyers.

The state now takes one-half of one percent for land and homes sold for under

$800,000, one percent for the portion of homes that exceeds $800,000 and one

percent on commercial property.

Municipalities already tax residential and commercial property $1.10 per

$1,000 of the selling price.

Andrew McDonald, Stamford's director of legal affairs, said the bill would

especially help pricey communities in lower Fairfield County, since the high

cost of land makes it harder to get enough money to preserve open space.

"This would present a significant opportunity and mechanism for municipalities

to acquire open space that is becoming increasingly scarce," McDonald said.

Opponents of the bill, however, said the proposal was unfair and would further

increase the "sticker shock" newcomers to Connecticut experience when they try

to buy homes.

"We firmly believe that since all people enjoy open space, all people should

pay for it. We believe the tax is a fundamentally unfair way to pay for open

space," said Bill Ethier, general counsel for the Home Builders Association of

Connecticut.

He also said some towns may use funds from the new tax to stop controversial

developments instead of using the money to preserve environmentally sensitive

or important parcels.

Members of the Connecticut Association of Realtors said the tax also would be

unfair to elderly people who are selling their homes so they can move into a

nursing home or for retirement, and for people who are selling their homes at

a loss.

The group urged the committee to continue the bonding and grant program for

open space.

Environmental groups noted that real estate conveyance taxes have been

successful in Vermont, New York and on Martha's Vineyard.

And, since the law would simply give communities the option of assessing the

tax, each town could decide whether the tax fits in with its development and

preservation goals, the Land Conservation Coalition for Connecticut said.

(Associated Press reports were used in this story.)