It’s been said that this year, the Connecticut legislature will be focusing more on financial matters, and that one of the top issues will be on municipal taxation.
In Connecticut, property taxes are a primary source of revenue for the towns. Towns are allowed to charge a uniform mill rate to personal and commercial properties, based on revaluations that are supposed to occur at least once every three years.
Yes, we have sales taxes, and we have income taxes….but those go directly to the state, although they do leak back to the towns in the form of block grants, at least when the budget isn’t tight.
However, some towns have issues with this funding mechanism. Here in Windsor, a common complaint is that the revaluation two years ago saw some residential property values jump 30%, while commercial property values held steady, meaning that many individuals were hit with a pretty spectacular tax hike, while commercial properties didn’t face a similar shock.
Over in South Windsor and Manchester, the towns face a significant amount of traffic associated with the Buckland Hills Mall and its neighboring commercial areas…and while property tax is collected, there are concerns that they lack the mechanism to impose a “fair share” of the burden of maintaining infrastructure, providing police services, etc. on the commercial developments.
So, I ask this — why not grant the towns a little more flexibility in determining how they derive their revenue. Why not allow towns to vary the personal and commercial tax rates, or to “piggyback” off the state sales and/or income taxes?
