Early Sunday morning Governor Dan Malloy and legislative leaders issued a joint news release on agreement for the two-year $40 billion state budget in the final days of the legislative session that includes tax relief on motor vehicles in high mil rate communities, sharing sales tax revenue with local communities and “revolutionary changes” in the state’s Payment in Lieu of Taxes program for tax-exempt properties. To finance the budget, taxes will increase on the wealthy and businesses.
Legislative leaders have crafted a uniform mil rate on car taxes so under the plan Bridgeport residents will see a drop in what they pay in vehicle taxes. The state will make the city whole on the revenue losses.
Senate President Martin Looney spearheaded the proposal to prevent municipalities from taxing motor vehicles more than 29.4 mils, the average mil rate of Connecticut’s 169 towns and cities. Bridgeport’s mil rate is 42.198.
In addition, the city will receive an increase from the state in PILOT payments for tax-exempt properties such as state buildings, colleges and hospitals. The majority of tax-exempt properties are located in cities.
Sales tax revenue will also be shared with communities.
The electronic drawing game keno will also be part of the new budget, allowed in some restaurants and bars authorized by The Connecticut Lottery.
Statement from Mayor Bill Finch:
“In Bridgeport, we’re investing in the future, making our city a place where more companies want to invest and hire people, more people want to live and work, and where our strong communities are making for an even stronger economy. Gov. Malloy and state leaders have proven time and time again that they’re willing to step up to the plate and make wise investments in Bridgeport. And, from what we understand of the compromise that’s been struck on this biennial budget so far, we’re confident that Gov. Malloy and state leaders will continue their trend of making smart investments in our city and its future.”
Governor Dannel P. Malloy, Senate President Martin Looney, House Speaker Brendan Sharkey, House Majority Leader Joe Aresimowicz, and Senate Majority Leader Bob Duff announced that they have reached an agreement on a biennium budget. The package takes Connecticut into the future by funding transportation, providing important property tax relief, and funding vital programs.
“A brighter tomorrow will start with this budget today. This agreement will help Connecticut now and in the long-run–it helps transform our transportation infrastructure as we aim for a best-in-class system. It supports our schools, supports the middle class, and supports vital programs for those who need it most. Most importantly, it helps us build a Connecticut for the long-term, making our state an even greater place to live, work, and raise a family,” Governor Malloy said.
“This budget meets the State’s obligations and provides historic property tax relief for the people of Connecticut,” said Senate President Martin M. Looney (D-New Haven). “After years of acknowledging the need to change our Payment in Lieu of Taxes program, this year, we delivered revolutionary changes by taking into account the relative need for assistance based on the percentage of tax exempt property in each municipality. We also begin to provide substantial relief for car owners and high mil rate municipalities on their car tax.”
“This budget has major property tax relief for Connecticut’s families by sharing sales tax revenue with local communities.” said Senate Majority Leader Bob Duff (D-Norwalk). “Additionally, this budget supports our people, our business sector and makes significant long term investments in our transportation system.”
“This budget protects hard-working, middle-class families by providing property tax relief through additional aid to our communities, and funds vital services people rely on every day by asking the wealthy and corporations to pay a little bit more. The legislature worked closely with the governor to finalize a budget that represents the wide ranging priorities of our diverse state, and sets us on a path that encourages continued economic growth. Concerns over some provisions in earlier versions of the budget were heard and reflected in the final deliberations,” said Speaker of the House Brendan Sharkey (D-Hamden).
“This is a balanced, responsible budget that protects middle-class taxpayers and restores the funding for services on which hard-working Connecticut families depend,” said House Majority Leader Joe Aresimowicz (D-Berlin/Southington). “We made sure to listen to what was important to Connecticut residents and were successful in restoring critical funding to the people that need it most.”