News release from State Senators Marilyn Moore and Ed Gomes:
At a press conference today at Bridgeport’s We Transport Inc., State Senators Ed Gomes (D-Bridgeport) and Marilyn Moore (D-Bridgeport) announced that Park City businesses and middle-class families can expect to see millions of dollars in car tax relief in 2016. Bridgeport senators were joined by Senate President Martin M. Looney (D-New Haven) and Senate Majority Leader Bob Duff (D-Norwalk).
“Bridgeport’s residents and businesses will save hundreds to thousands of dollars and have that money put back into their pockets,” said Senator Gomes. The state budget will allow Bridgeport businesses and families to reduce their car taxes by 30.4 percent.”
“The budget establishes a permanent cap on the car tax all across Connecticut,” said Sen. Moore. “Businesses will see their car tax bills slashed by nearly a third, allowing for more money to be used to hire additional employees, give bonuses to current employees or purchasing more vehicles for production. I am happy to see that both the Bridgeport businesses and the communities they serve will benefit greatly as a result of this legislation.”
“The recently approved state budget reforms the state’s property tax system, delivering much needed motor vehicle tax relief to our residents and businesses,” said Senate President Martin M. Looney (D-New Haven). “It is estimated that this budget will save families and businesses $60 million in car taxes in fiscal year ’17 and $90 million in car taxes fiscal year ’18, in addition to the other property tax relief that should result due to the significantly increases municipal funding contained in our budget.”
“When I speak with business owners in my district, the tax that they are most concerned about is the property tax on their cars, fleet vehicles and other property,” said Senate Majority Leader Bob Duff (D-Norwalk). “Cutting motor vehicle taxes for businesses like We Transport Inc. will allow the company to reinvest those dollars back into the business and its workforce.”
As a result of the state budget, next year 46 percent of residents and businesses across Connecticut will receive a car tax cut when the mil rate is capped at 32 mils. In the following year, 56 percent of the state population will receive a direct car tax cut when the mil rate is again capped at 29.36 mils.
Companies like We Transport Inc., a provider of student and special needs transportation in Bridgeport will save over $200,000 over the next two years as a result of the mil rate cap.
Bridgeport families that own a vehicle with an assessed value of $18,000 can expect to save an estimated $400 over the next two years when the mil rate is capped at 29.36 mils by 2018.
“As one of the local companies, with a large amount of vehicles, that calls Bridgeport home, this reduction goes a long way to help us stay competitive within the industry,” said Andrew Ifill, WE Transport’s Director of Connecticut Operations. “We will utilize the savings to add jobs and obtain further growth within our industry. We would like to give a heartfelt thanks to Senator Moore and Senator Gomes for leading this effort that not only helps the residents of a city like Bridgeport, but also provides further opportunity for companies like WE Transport.
Great News! Let’s cap property taxes next.
You should have heard of Prop 2-1/2 in California? That capped property taxes at 2-1/2 percent of assessed valuation, or put another way, capped the mil rate at 25. With Bridgeport’s mil rate over 40, and only going higher once the new reval goes live, this would be a very interesting thing to happen. Unfortunately in CT, there’s no current way to get a citizen’s initiative into the system, and the Democrats in control would fight like hell against it anyway.
Very happy!
Another crock. The only people who benefit are those who live in the projects. Malloy just transfered the tax burden to the property owners. He cut the property tax credit on your income tax. If you pay income taxes and property tax on your house you are paying the car taxes for all those who do not rent or own. (If you rent you are just paying your landlord’s house taxes.) The city needs to get $500 million. We pay that one way or another. The only ways to lower the property tax is to spread that burden over more people (increase the grand list with things like Bass Pro) or cut budget. Replacing BOE cash with in-kind services is a good example.
BOE SPY,
“Replacing BOE cash with in-kind services is a good example.”
NOT if it’s a violation of the state MBR. NOT if the appraised value of in-kind services is off.
The cash value of the in-kind services has multiple definitions. You could assess the value as what it cost the city or what the BOE was paying for the same services. In this case, the in-kind services were a value to both sides. The most interesting thing is how much fuss an agency with a $250 million dollar budget made over about $5 million in services, especially after giving away $7 million to the teachers union in contract negotiations. The $7 million to the teachers union is a straight up loss. The in-kind services, at best, is an even trade as the BOE will get $5 million in cash and has to pay for the services. They will still need the snow plowed and the trash emptied.
You are absolutely correct about moving the car tax to property owners’ tax burden. Justifying the punitive budget this legislative group just passed is just plain ridiculous.
People who own rental apartments will pass their tax increases onto the tenants with higher rent.
BOE SPY, you are still a poor spy. The developer will pay no property taxes on Steal Point for the next 20 years.
In-kind services is illegal under the state law.
That is true. To be honest, they should have left Steel Point alone until development was closer to being in place. And, developers do have a 20-year tax deal. I think the developer, being a builder, will sell the development soon after it opens in order to free capital and start his next project. The tax deal would be akin to an interest-only mortgage. Not something a long-term business person is going to get. The developer is keen to get it built and cash out. Once the buildings are sold, the tax deal is moot. Honestly, the deal is particularly ingenious on Finch’s part.
Good deal. Now, if Finch would only man up and cancel VioLert’s contract …