Governor Dannel Malloy’s budget director Ben Barnes, in a comment he posted on OIB writes the governor’s proposal to put the brakes on auto taxes “does indeed assume that communities will make up most or all of the lost car taxes with a shift onto other property taxpayers.” City bean counters are reeling from the governor’s budget proposal that if passed by the legislature will cost the city roughly $17 million in revenue. No problem, says the state’s chief bean counter, the revenue will simply be shifted to “other” property taxpayers. But what will the residential tax rate be? How will this plan impact businesses considering the city? Is this a shell game? Barnes’ comment follows:
The governor’s proposed elimination of the car tax does indeed assume that communities will make up most or all of the lost car taxes with a shift onto other property taxpayers. Since some of those taxes are paid by absentee property owners, businesses and owners of taxable personal property, the shift should favor residents, particularly renters and lower-income residents. Bridgeport, and every other city and town, should do the math before jumping to conclusions about what this will mean. Overall, most Connecticut residents will benefit from this change, depending on what kind of property and cars they own.