Republicans in the Connecticut state House of Representatives are proposing to expand the state’s property tax credit to a maximum of $1,000. They’re calling on Democrat leaders to take up the proposal during a potential upcoming special session to address changes to the federal budget and to put $501 million from the volatility cap into property tax relief instead of using it to offset cuts from Washington.
Minority Leader Vincent Candelora, R-North Branford, referenced rumors that a special session likely to be convened next month will see Democrats use $500 million of the state’s volatility cap for state spending to address changes to the federal budget.
“We believe that’s not a prudent approach. We believe the Rainy Day Fund, standing at $4.3 billion, is certainly sufficient to sustain any type of potential federal cuts that may be coming down in the future.” Candelora said.
Instead, Candelora said Republicans are proposing to use the $500 million to “honor the spirit” of the budget guardrails and use it to reduce unfunded liabilities for tax burdens.
The Republican plan would expand the property tax credit from a maximum of $300 to a maximum of $1,000 and expand eligibility to an estimated 800,000 additional people in the state by expanding income eligibility by $20,000 for single income tax filers and $30,000 for joint filers. The proposal would also increase the minimum credit to $400.
Rep. Joe Polletta, R-Watertown, who sits on the Finance, Revenue, and Bonding Committee, said Republicans want to “for the first time in our state’s history triple the property tax credit and give taxpayers back, those that are eligible, their hard-earned money.”
Polletta emphasized the $501 million price tag on the plan, saying it was “the same money that the Democrats are planning to put in a special fund to spend on other projects.”
“But Republicans are here trying to provide real tax relief to struggling seniors, struggling folks on fixed incomes, our veterans, our most vulnerable folks around Connecticut.” Polletta added. He also said the proposal would stop seniors from being priced out of their homes.
Polletta also mentioned a proposal put forward by Gov. Ned Lamont in the last legislative session that would have raised the tax credit by $50.
“Republicans are expanding on that today and calling on Democrats to join us.” Polletta said.
Legislators were joined by the mayors of Bristol, Wallingford, and Seymour, who all discussed the effects of state-mandated revaluation on their towns. State statute requires revaluation to happen every five years. Candelora said the revaluation process since the COVID-19 pandemic has caused a “crisis for homeowners.”
According to Bristol mayor Jeff Caggiano, the town is seeing seniors being priced out of their homes following a 2022 state-mandated revaluation that led to a 35 percent increase in home valuations, increasing taxes and decreasing the mill rate. Caggiano said the town has tried to expand its local tax relief program by increasing the income limit, but called it a “self-fulfilling thing” that is “taking money from others to save taxes there.”
Caggiano also mentioned underfunding in other areas of the town budget, including in special education, which he says are forcing the town to rely more on property taxes to make up for the shortfall. He also mentioned a 2022 change in state law that now requires municipalities to calculate car taxes based on the manufacturer’s suggested retail price (MSRP), adjusting annually for depreciation. Previously, car taxes were based on a vehicle’s resale value.
According to Caggiano, that change, along with a change to the motor vehicle mill cap also made in 2022, reduced taxable income from 17 percent t 10 percent, cost the town $1 million in revenue, and shifted the burden onto homeowners.
Mayor Vincent Cervoni of Wallingford said the town’s revaluation in 2024 resulted in an average property value increase of 40 percent. Property taxes increased by 16 percent as a result due to the town budget increasing by 4 percent.
“People in town ask me for tax relief. We apply all of the statutory programs that are available to us. When we tax as a municipality, we follow state law. So, the way to change the way we tax, or the way to benefit homeowners, is for the state law to change.” Cervoni said.
Candelora also addressed rumors about what might take place in an upcoming special session, slated to potentially take place between November 11 and November 13. He said Republicans have heard “very little” about what might happen and are concerned about it possibly taking place after the election. Candelora suggested Democrats may be holding off until after the election because they want to pass a new tax.
“The other thing I’ll add that is pretty disturbing when I look at this process is the volatility money that’s sitting out there has always been transferred into the pension by October 1. This is the first time in Connecticut history that it’s being held onto through November. And it’s being held onto for political purposes to give Democrats an opportunity to sweep that money.” Candelora added, stating this had implications for loss return in the state pension fund.
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I spoke with someone from Inside Investigator about this hypocrisy.
That is Wallingford Mayor, Vinny Cervoni. My Wallingford property (cond0) taxes have increased 29% since last year, and 37% since 2021.
We have this gigantic tax increase, and one Councilwoman, who voted for the tax increase, saw a 4% increase. One BOE member saw a 66% decrease.
This is horrible.