The conveyance tax in Connecticut is based on what aspect of the property sale?

The correct answer is based on the selling price of the property. In Connecticut, the conveyance tax is a tax that is applied to the sale of real estate and is calculated as a percentage of the selling price. This means that the amount of the tax is determined by the actual price at which the property is sold, reflecting the current market value and the agreed-upon transaction details between the buyer and seller.

Understanding the basis of the conveyance tax is important for both buyers and sellers, as it directly affects the total costs associated with the transaction. The selling price provides the most relevant and current measure of a property’s value at the time of sale, making it a logical basis for the calculation of this tax. Other options, such as the earnest money or the assessed tax value, do not accurately reflect the value of the property being transferred and therefore are not used in determining the conveyance tax. Similarly, the size of the property does not correlate with its sale price, further solidifying why selling price is the appropriate metric for this tax.