When is enough enough? I am a commercial Real Estate agent. Our industry is already being decimated by the faltering economy, lack of financing for properties we sell, and the CONVEYANCE TAX imposed by the State (which was promised to sunset but was extended in 2005 and 2007). Now, ACCORDING TO HB 6349 the legislature wishes to enact more fees yet again. If lawmakers at the capitol would actually care to ASK what these taxes have done to our industry, they would hear the following:

Commercial Agents get paid for a service in arrears not in advance and take extraordinary RISKS with their time to deliver value to either the SELLER/BUYER or LANDLORD/TENANT. We do not charge hourly fees and many of our transactions take 2-5 years to close and are conditional TO THE VERY END. In other words, a tax now will likely WIPE OUT most if not all COMMISSIONS for the previous two years once the affected principals discover their COSTS are going up.
COSTS to the principal will increase as a result of additional taxes. Simply explained, Brokers will attempt to pass the TAX along to the principal. The Principal will in turn will refuse to pay and walk away from the transaction or take it out of the BROKER COMMISSION. This is not fantasy; this is the way it happens in the commercial world. We, as brokers have limited leverage against the principals because they are PAYING THE COMMISSION. This is not your intended result I am sure but it appears that lawmakers do not see the unintended consequences of raising TARGETED taxes.
SALES transactions are already suffering due to the increased CONVEYANCE TAX EXTENDED FOR A SECOND TIME IN 2007.
With our industry in the greatest contraction since 1990 and sales activity at 40 year lows, how is additional tax justified?

Regards,

Kyle Ely
Goodfellow Ashmore Commercial RE
2A Ives St.
Danbury, CT 06810