Budget Passes House
Rep. Jason Doucette’s (D-Manchester, Glastonbury) announced his first two legislative proposals - to eliminate the Business Entity Tax for small businesses and to create a real estate conveyance tax exemption for crumbling foundations, have been included in the 2020-21 budget plan, passed by the House late Monday evening.
Rep. Doucette introduced HB 5193 in January to create an exemption from the real estate conveyance tax for homes affected by crumbling foundations. As a practicing real estate attorney in Eastern Connecticut, Rep. Doucette is very familiar with the state’s crumbling foundations problem. Often these homes are sold at a greatly reduced price and, to add insult to injury, the seller is then liable for more out of pocket expenses in the form of a conveyance tax which can be hundreds or thousands of dollars. This exemption would be available to those homeowners who sell their home after the problem is identified, but who have elected not to seek relief through the CFSIC captive insurance program.
“This exemption provides just a little bit of relief to homeowners who have already lost so much. I am grateful to the leadership of the Finance, Revenue & Bonding Committee, as well as legislative leaders from both chambers and the budget team from OPM and the Governor’s office for seeing the good policy behind this proposal and including it in the budget.”
With the introduction of HB 5194 in January, Rep. Doucette championed for eliminating the biennial Business Entity Tax of $250. With the repeal of the tax, Rep. Doucette believes it will directly benefit existing small businesses and remove a deterrent for hopeful entrepreneurs.
“As a small business owner myself and an attorney to small businesses I know firsthand that this tax is not only a nuisance, it can be a very real burden to our smallest businesses.”
“I am gratified to know that my first two legislative proposals are one huge step closer to becoming law.” said Rep. Doucette.
The budget passed the House of Representatives and is expected to be voted on in the Senate before the end of the 2019 Legislative Session which ends Wednesday, June 5th.