CT state income tax cuts could be erased by rising local property taxes, lobbying group says

Whereas the proposed cuts in Connecticut’s state revenue tax are being cheered, the state’s largest lobbying group for cities and cities stated Monday the celebration could also be untimely as a result of positive factors by taxpayers are more likely to be largely erased by rising, native actual property taxes.

The primary discount within the state revenue tax since 1996 can be transfer, stated Joe Delong, government director of the Connecticut Convention of Municipalities. However in a state the place the funds surplus has risen above $3 billion, there have to be extra funding to offset the prospect of rising property taxes, pushed largely by inflation and better power prices,

“The prices are rising and with none help or assist from the Normal Meeting, these prices will straight shift into property taxes,” Delong stated.

Delong’s feedback got here in a digital roundtable dialogue with reporters and editors at The Courant on subjects starting from the implications of seven% inflation and hovering power payments for the budgets of Connecticut’s cities and cities to CCM’s push for extra monetary compensation by the state for municipalities — notably cities like Hartford — which have dozens of tax-exempt buildings, a lot of them state-owned.

Delong stated it doesn’t take a “nice deal of deep diving” to know that turning on the lights in colleges prices extra; sustaining authorities buildings means greater payments and highway restore — proper all the way down to filling potholes — carries the next price ticket.

“I consider what you’ll see occur is the Normal Meeting will cross some form of revenue tax break,” Delong stated. “However most individuals will see their total tax burden improve, not lower, as a result of the property tax will increase will wipe that out.”

One among CCM’s legislative priorities this 12 months was pushing for growing the state’s payment-in-lieu of taxes program — identified by the acronym “PILOT.” This system, which has existed for many years, supplies a reimbursement for property taxes for some tax-exempt properties in cities and cities.

Historically, state regulation known as for a forty five% reimbursement of property taxes for state-owned buildings and 77% for personal faculties and colleges. However the precise funding additionally was topic to the monetary ups and downs of the state funds. In keeping with CCM, PILOT reimbursements had been truly 14% for state properties in 2021 and 22% for personal colleges and hospitals.

In 2021, state lawmakers authorised adjustments that included making a three-tiered system that now supplies for a brand new PILOT reimbursement for the poorest cities, together with Hartford. This system now supplies Hartford and different “tier-one” cities 50% of what would have been due beneath a mix of the present share reimbursements for state-owned buildings and personal colleges and hospitals.

Delong stated the change was first step, however the full quantity of the reimbursement — supplied for in state statutes — ought to be paid by the state.

“It is best to begin the day without work by simply saying, OK — we have now all this cash, let’s pay our payments,” Delong stated. “It doesn’t need to be a brand new program. The three-tier PILOT was created, let’s put some extra money in.”

CCM additionally opposes a invoice now within the legislature would enable present firefighters and people inside 5 years of retirement to entry employees’ compensation advantages for any most cancers of the mind, pores and skin, digestive, endocrine, hematological, lymphatic, reproductive, respiratory or skeletal programs.

It might not apply to firefighters with a propensity for most cancers or proof of most cancers throughout their entry examinations. Exemptions would additionally happen for individuals who did not submit annual bodily exams, didn’t put on respiratory and private protecting tools, smoked inside 15 years of the diagnoses, or have labored lower than 5 years on the roles.

Cities and cities have opposed the invoice — successfully an growth of employee compensation — as a result of it might overburden municipal budgets.

“All of these issues are being paid for — in the event that they had been to cross — via elevated property taxes,” Delong stated.

Reporting by Courant Workers Author Alison Cross was included. Kenneth R. Gosselin will be reached at kgosselin@courant.com.