Realtors warn against proposed ‘mansion tax’

Posted: Updated:
GREENWICH -

The governor's proposed "mansion tax" could hit residents of western Connecticut hard -- even those who aren't millionaires, some realtors are warning.

Many homes in areas like Greenwich would be subject to the proposal, which would nearly double the tax on luxury home sales. Homes that sell for more than $800,000 would be impacted, and realtors say houses in that range are already struggling to sell as millennials move closer to New York City.

One affected house would be a waterfront home in Greenwich listed for just under $3 million. Coldwell Banker says a house like that would have fetched almost $4 million a few years ago, but as ultra-wealthy residents leave the state, real estate prices drop.

Realtors say the loss of residents looking to buy homes in the $3 million to $5 million range could also mean a decline in revenue for programs that normal residents rely on.

"These are the people that are…contributing to our tax base in other respects," says Mary Ann Clark, a Coldwell Banker realtor.

State lawmakers have two weeks to pass a new budget. Gov. Dannel Malloy says his proposal would actually protect towns like Greenwich by avoiding another income tax hike.

"We're making substantial adjustments in our income tax policy and our estate policy in this budget, so I think it was a fair trade-off," the governor says.

Gov. Malloy's budget is the only proposal so far to include the mansion tax. Neither Democratic nor Republican proposals currently carry the measure.

A comparable tax in the neighboring state of New York affects houses that sell for $1.75 million or more.

News 12 has recently updated to a brand new version of our iOS and Android apps. If you don't have auto updates enabled on your devices, head to the App Store or Google Play Store to update to the latest version. This will ensure you keep getting up-to-date local news, traffic and weather information.

  • Connecticut SlideshowsGalleriesMore>>

  • France shooting aftermath

    France shooting aftermath

    Wednesday, December 12 2018 12:07 PM EST2018-12-12 17:07:12 GMT
    Photos of the aftermath of a shooting that killed least three people in Strasbourg, France.
    Photos of the aftermath of a shooting that killed least three people in Strasbourg, France.
  • Gift Guides: Gifts for everyone on your list

    Gift Guides: Gifts for everyone on your list

    Wednesday, December 5 2018 7:37 AM EST2018-12-05 12:37:03 GMT
    From Jack-Jack, of the "Incredibles," to the newest Fingerlings toy, we have a list of the hottest toys for the kids in your list!From Jack-Jack, of the "Incredibles," to the newest Fingerlings toy, we have a list of the hottest toys for the kids in your list!

    We have a list of the best gifts for everyone on your list!

    We have a list of the best gifts for everyone on your list!

  • Your Connecticut 2018 Holiday Photos

    Your Connecticut 2018 Holiday Photos

    Your Connecticut 2017 Holiday PhotosYour Connecticut 2017 Holiday Photos

    Check out all of the photos this holiday season! Send us yours on Instagram or Twitter using #CTHolidays.

    Check out all of the photos this holiday season! Send us yours on Instagram or Twitter using #CTHolidays.

sorry to interrupt
your first 20 are free
Access to News 12 is free for Optimum, Comcast®, Spectrum Networks® and Service ElectricSM customers.
Please enjoy 20 complimentary views of articles, photos, and videos during the next 30 days.
you have reached your 20 view limit
Access to News 12 is free for Optimum, Comcast®, Spectrum Networks® and Service ElectricSM customers.
Please login or create an account to continue enjoying News12.
Our sign-up page is undergoing maintenance and is not currently available. However, you will be given direct access to news12.com while we complete our upgrade.
When we are back up and running you will be prompted at that time to complete your sign in. Until then, enjoy the local news, weather, traffic and more that's "as local as local news gets."