Sales down = tax revenue down. Do they know about this relationship in Hartford?

Conveyance tax receipts down, budget takes a hit.

For the first six months of the current fiscal year, which started July 1, the town took in nearly $1.5 million in conveyance taxes, according to the municipal budget director. At that pace, Greenwich would take in less than $3 million for the entire fiscal year, well below the $7.3 million for which town officials budgeted.

Slumping home sales are to blame, as some say it was only a matter of time until the bottom fell out of the housing market.

The number of single-family home sales in Greenwich tumbled 36.6 percent to 460 last year, from 726 in 2007, according to searchGreenwich.net, a Web site that tracks real estate transactions. Total single-family home sales volume fell nearly $900 million, from about $2.2 billion in 2007 to about $1.3 billion in 2008.

“We probably thought it was a reliable source of income. I think we’re now all realizing that was a bad assumption,” said Peter Berg, a Representative Town Meeting member from District 8/Cos Cob.

I don’t often agree with Mr. Berg but he’s spot on here. As Monty Python observed, “No one expects the Spanish Inquisition”. We should, no doubt, but human nature resists.

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One response to “Sales down = tax revenue down. Do they know about this relationship in Hartford?

  1. Stranger

    Bring out the comfy chair!