(HAMDEN, CT) – Today, Lt. Governor Susan Bysiewicz joined Hamden Mayor Lauren Garrett and other Hamden officials to highlight the impact of the Governor’s tax cut proposal. The proposal includes a series of tax cuts that would provide approximately $336 million in relief for Connecticut residents.
One facet of the proposal would lower the mill rate cap on motor vehicle property taxes from 45 mills to 29 mills and reimburse local governments for the resulting revenue impact. A 29-mill cap on all motor vehicles would provide property tax relief for over 1.7 million vehicles in 103 towns and cities, including 20 of the 25 distressed municipalities. This would continue to apply to passenger, commercial, and combination vehicles.
“The Governor’s tax cut proposal will have a direct impact on Connecticut residents, municipalities and businesses, especially medium and small,” said Lt. Governor Susan Bysiewicz. “The dollars saved will allow for more money to be reinvested back into businesses, benefiting both customers and employees across our state. Municipalities would be able to use reimbursed revenue to invest back into their communities. Now is the time to make these cuts and provide relief to our state’s residents.”
Along with the capping of mill rates, Connecticut residents could see the restoration of full eligibility for the property tax credit beginning in income year 2022, expanding the credit to all adults in the state. Currently, those 65 and older or those with dependents qualify.
If passed, the proposal would restore eligibility of the property tax credit to all households within income limits and would boost the credit from $200 to $300. This is estimated to have a direct impact on 1.1 million residents.
“Through this proposal, the State of Connecticut will provide net $3 million to Hamden in support,” said Hamden Mayor Lauren Garrett. “That is $3 million that we don’t have to rely upon our taxpayers in Hamden for property taxes. This allows us to give gross wage increases and an increase in funding to the Board of Education. When we can get more financial assistance from the State of Connecticut, we don’t have to go to our taxpayers for those increases.”
“Thank you to Governor Lamont, Lieutenant Governor Bysiewicz, Mayor Garrett, and Hamden heroes including Christina Crowder and Representative D’Agostino who worked on a bill a couple of years ago regarding car taxes. To see this come full circle and bring relief to every Connecticut resident is so important,” said Justin Farmer, Town Council Member.
Governor Lamont said that he is proposing the tax cut package as the state is projecting an operating surplus of $1.48 billion, which will enable a significant reduction in the one-time revenues built into the enacted budget and will continue to ensure the state has a strong rainy-day fund.
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For Immediate Release: Wednesday, February 23, 2022
Contact: Chelsea Neelon