(WTNH) — Governor Dannel Malloy has signed off on the state’s budget, covering expenses for the next two fiscal years. What does it mean for you?
Of specific interest to city-dwellers in Connecticut is property tax relief in the form of reduced payments on vehicle taxes. City residents have historically paid exorbitant rates compared to suburban and rural areas.
“We have a factor of some communities taxing cars seven-times as much as others,” said Senate President Martin Looney. “We now address that at capping the car tax at 32 mills.”
More relief for cities will come from the PILOT program. Cities filled with tax exempt properties like colleges, universities, and hospitals will now receive more revenue from the state through “payment in lieu of taxes.” More money will go to cities with more tax exempt property.
“For first time now we recognize that communities with more tax exempt property should have a greater degree of reimbursement under the PILOT formula than those who don’t,” said Looney.
“This is a budget that provides actual property tax relief for working families in this state,” said Speaker of the House Brendan Sharkey.
To pay for these tax reliefs, the state’s wealthiest will be asked to pay more through an income tax increase for those who make more than $500,000 per year.
Republican leadership says this budget is bad fiscal policy.
“The first budget they passed had a $1.6 billion deficit at the end of two years. This one has a $1.8 billion deficit,” said Senate Minority Leader Len Fasano.
Governor Malloy defended his budget and his record.
“The average increases in year-to-year spending under my administration are lower than under Rell, lower than under Rowland, and lower than other administrations,” he said.
He says many of the best parts of this budget won’t be recognized until transportation projects begin.