Connecticut Enters Excise Tax Fray Against Fannie, Freddie

Law360, New York (August 21, 2012, 4:45 PM EDT) -- The city of Bridgeport, Conn., on Monday joined a growing list of U.S. municipalities to file a putative class action against Fannie Mae and Freddie Mac alleging the mortgage giants dodged property-related excise taxes in real estate deals.

Filing the suit in Connecticut federal court on behalf of the state's 169 municipalities, Bridgeport alleges the two companies have illegally claimed to be government entities that are exempt from having to pay transfer taxes when property under their domain trades hands. The city is seeking the unpaid...
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