MANCHESTER, Conn. (WTIC Radio) - Lt. Governor Susan Bysiewicz is highlighting Governor Ned Lamont's proposal to lower the 45-mill rate cap on motor vehicle property taxes to 29 mills. (A mill equals $1 of tax for each $1,000 of a property’s assessed value.)
As part of Lamont's $336 million tax cut plan, the proposed 29-mill cap would provide relief for over 1.7 million vehicles across 103 cities and towns, including 20 distressed municipalities, Bysiewicz said.
Connecticut is in a fiscally sound position to offer this relief now, according to Bysiewicz.
While no promises can be made to keep this relief going forever, Bysiewicz said, "we are in this very good situation where we have a very robust rainy day fund and we have a $1.48 billion operating surplus. So, we're going to do it right now when we can."
It's this strong financial standing that eases East Hartford Mayor Michael Walsh's concerns.
East Hartford and other municipalities have seen this kind of support fall through in years past, Walsh said. However, he said state leaders have put Connecticut's finances back in order, making a proposal like this far more plausible this time around.
"The state's budget is in a very different place today than it was then. It's always been recognized by both the House of Representatives and the Senate that the car tax is the most insidious, regressive tax that we have in the state of Connecticut. So, several years ago, when they attempted to do this, and ultimately the funding wasn't there, it still didn't mean that they weren't recognizing the issue," he said.
The 29-mill cap would apply to passenger, commercial and combination vehicles. The proposal also includes reimbursement to local governments for the resulting revenue impact.