Property taxes are soaring in CT. Can state lawmakers help?
Republicans and Democrats are divided over how much to expand property tax credits and whether to send out one-time rebate checks.
Connecticut lawmakers want to offer relief from "devastating" property tax hikes.
But how to do it is a big sticking point in Hartford.
“DEVASTATING IMPACT”
If you own a home, your property taxes have probably gone up.
“Since pre-pandemic, some towns have seen their property taxes more than double. That’s unfair,” said state Rep. Joe Polletta (R-Watertown). “It has had a devastating impact around the state of Connecticut. I mean, in my town alone, we’ve seen a 35% increase.”
On Monday, Connecticut House Republicans pitched their plan for relief.
Right now, homeowners can claim up to a $300 property tax credit on their state income taxes. The GOP plan expands the maximum credit to $650. More people could claim it too. Currently, families making up to $130,500 a year qualify. That would expand to $200,000 per year.
“That’s right away savings,” Polletta said. “It would be a right-off on their state income tax.”
The proposal would cost $275 million a year, House Republicans said. Last year, the caucus proposed an even bigger property tax credit.
BIGGER CREDIT OR REBATE CHECKS?
Democrats want to raise the property tax credit too, but only to $400. They are also proposing one-time rebate checks and a $150 million cash infusion for local schools, which would come out from "volatile" capital gains taxes that are usually diverted into the state pension fund.
“I think you could take the existing pot of money that goes to that credit and make it a check for this year,” Connecticut House Speaker Matt Ritter (D-Hartford) said last Wednesday. “And that’s not any new money required for that.”
Both sides could be gearing up for a fiscal showdown with Gov. Ned Lamont, who only proposed the rebate checks in his budget. Lamont urged lawmakers to be cautious with spending and tax cuts with deep Medicaid cuts coming from Washington.
“There are a lot of proposals that are one-time gimmicks,” said state Rep. Vin Candelora (R-North Branford), the Connecticut House Minority Leader. “And proposals that don’t offer structural change are not policy, it’s politics.”
LOWERING PROPERTY TAXES
Actually lowering local property taxes is a lot more challenging. School districts across the state are demanding a larger base funding rate from the state as special education costs skyrocket.
“I’m going do what I got to do to fight the fight,” said Dr. Royce Avery, Bridgeport Public Schools’ interim superintendent. “So I need this community, I need the mayor, city council, just like we are at the delegation, to stand with me.”
As for how to pay for both parties’ property tax credits? Stay tuned.
Democrats plan to vote on their tax and spending plans this week, while House Republicans plan to propose their own budget in the coming weeks.
