The Connecticut state legislature is expected to vote next week on an extension of the state's real estate transfer tax. 

Without an extension, the municipal portion of the conveyance tax would expire as of July 1.

The conveyance tax has been a controversial issue that has surfaced regularly at the Capitol since lawmakers decided in 2003 to increase the tax from 0.11 percent of the sale price to 0.25 percent in most cities and towns in order to close a budget gap. For 18 low-income, distressed communities, such as Hartford and New Haven, the tax rate was raised from 0.36 percent to 0.5 percent. The increased tax was scheduled to disappear under a "sunset'' provision, but it has been extended at least three times by the legislature. 

The main question now is whether the tax would be extended for two years, as requested by the mayors and first selectmen, or one year, as sought by some legislators. Lawmakers are also working to eliminate the tax on the sale of foreclosed homes.