Lawmakers heard from many towns against dropping the car tax
Mayors, first selectman and town managers across the state are concerned about how the governor’s proposed budget would affect local communities, so they are at the state Capitol on Monday for a public hearing of the finance, revenue and bonding committee.
One of the biggest concerns for some municipal leaders is Gov. Dannel Malloy’s proposal to eliminate Connecticut's property tax for cars worth less than $28,500.
Some city leaders said eliminating the tax would cut at least $600 million in revenue annually and could force local leaders to raise property taxes.
Dick Smith, First Selectman of Deep River, said the average resident’s property taxes would go up about $400 per year if the car tax was cut.
John Elsesser, the town manager of Coventry, said no car tax would force local officials to raise the property tax 8.5 percent, or an average of $207 per year.
Barbara Gilbert, town manager of Rocky Hill, said property taxes would increase by $500 on average without a car tax and the elderly could be hardest hit.
Several lawmakers are also concerned that Malloy has set aside millions of dollars in state aid just for education instead of letting towns decide how to spend that money.
The Council of Small Towns opposes another plan under consideration that would set statewide rates for motor vehicle taxes.