Free Daily Headlines :

  • COVID-19
  • Vaccine Info
  • Money
  • Politics
  • Education
  • Health
  • Justice
  • More
    • Environment
    • Economic Development
    • Gaming
    • Investigations
    • Social Services
    • TRANSPORTATION
  • Opinion
    • CT Viewpoints
    • CT Artpoints
DONATE
Reflecting Connecticut’s Reality.
    COVID-19
    Vaccine Info
    Money
    Politics
    Education
    Health
    Justice
    More
    Environment
    Economic Development
    Gaming
    Investigations
    Social Services
    TRANSPORTATION
    Opinion
    CT Viewpoints
    CT Artpoints

LET�S GET SOCIAL

Show your love for great stories and out standing journalism

‘Temporary’ tax to benefit cities and towns extended once again

  • by Jacqueline Rabe Thomas
  • June 22, 2010
  • View as "Clean Read" "Exit Clean Read"

The General Assembly voted overwhelmingly Monday to continue taxing real estate sales at an elevated rate first employed as a temporary measure seven years ago, a welcome relief to the state’s towns and cities who stand to benefit.

Without action, the 0.25 tax rate would have expired next week, and with it an estimated $25 million in revenue for the state’s 169 towns and cities. The rate would have reverted to 0.11 percent, where it stood for two decades prior to 2003.

Republican Gov. M. Jodi Rell plans to sign the bill, which easily passed the House and Senate, said spokesman Adam Liegeot.

A major supporter of the measure, Connecticut Conference of Municipalities,  said the tax should have been extended for at least two years, if not indefinitely. Instead, the tax hike was continued for just one more fiscal year, through June 30, 2011.

The 0.25 percent rate was first enacted as a temporary, one-year hike during the recession of 2003 to help offset mid-year cuts in state grants to cities and towns. Since then, lawmakers have neither repealed nor approved the hike indefinitely, instead endorsing one- or two-year extensions in 2004, 2005, 2007, 2008 and again on Monday, according to the Office of Legislative Research.

“We’ll have to fight this battle again all over again next year. We all know next session is going to be dominated by the state’s massive deficit, so trying to convince the legislature we need this money will be difficult,” said James Finley, executive director of the Connecticut Conference of Municipalities.

The Connecticut Association of Realtors dropped its opposition to the one-year extension last week, provided foreclosed homes and homes being sold for less than how much was due on the mortgage were exempt from the tax.

These exemptions — which are included in the final package — are estimated to affect 2,040 sales this coming year, reports the legislature budget office. Had they been taxed, it would have netted $1.73 million.

But CCM did not oppose the exemption for this group.

“We did not fight it. We understand people would need relief under those circumstances,” Finley said.

Because town aid has been flat-funded from the state at $2.8 billion for the past couple years–and next year is not looking any more promising with the $3.4 billion deficit– Rep. J. Brendan Sharkey, D-Hamden, co-chairman of the legislature’s Planning and Development Committee, said he would have supported permanently continuing the tax.

“We really need to do this until we find alternative revenues for them. It’s not fair to turn our backs on them,” said Sharkey.

But four state senators and nine representatives voted against the bill.

“This should go away,” said Sen. Toni Boucher, R-Wilton.

A second component of the bill conveys about a dozen parcels of state land to cities and towns – in most cases at little or no cost – despite an ongoing requirement that state government raise $60 million across two fiscal years from the sale of land, building and other assets.

The legislature traditionally adopts an omnibus property conveyance bill each year that transfers or leases dozens of surplus properties to communities, nonprofit agencies and others that are asked only to cover legal expenses. A bill was prepared this year, but died on the Senate calendar when the regular 2010 session ended on May 5.

Senate Majority Leader Martin M. Looney, D-New Haven, said legislative leaders limited this year’s property conveyance package to a relatively small number, and focused on small parcels to assist towns with economic development or other civic purposes.

Looney added that “we still assume that the administration is trying to meet the mandate” of raising $60 million from the sale of assets.

Rell and the legislature are counting on at least $60 million in total sales over this fiscal year and next to help balance the books.

The administration reported last month that while the Department of Public Works hopes to close the sale of three properties in the next two months, it had signed off on just $1.5 million in sales to date.

The $60 million biennial target, which includes $15 million for this fiscal year and $45 million for 2010-11, has been attacked by critics as overly optimistic, and as another method of pushing fiscal problems into the next term.

The bill adopted in special session Monday would provide land for public parking in Bridgeport, a fire station in Portland, and traffic improvements in Manchester and New Haven. It also includes property for unspecified “municipal purposes” in Wallingford, more than 14 acres for recreation in Burlington and returns a dam and surrounding land along Lake Phipps in West Haven to a local service district – even though the property was transferred to the state 20 years ago so it would repair and maintain the dam.

A final component of the measure authorizes a study on possibly dedicating 10 acres of the Newington campus of Cedarcrest Hospital, a state psychiatric care facility slated for closure, for town recreational use.

In other business Monday, the legislature also adopted a bill making a series of technical adjustments in the $19.01 billion budget approved last month for the 2010-11 fiscal year, which begins July 1.

The measure, which passed 103-36 in the House and 24-12 in the Senate in votes largely along party lines, also authorizes a new $40 million mortgage loan program through the Connecticut Housing Finance Authority to borrowers who purchase foreclosed or abandoned properties.

Sign up for CT Mirror's free daily news summary.

Free to Read. Not Free to Produce.

The Connecticut Mirror is a nonprofit newsroom. 90% of our revenue comes from people like you. If you value our reporting please consider making a donation. You'll enjoy reading CT Mirror even more knowing you helped make it happen.

YES, I'LL DONATE TODAY

ABOUT THE AUTHOR

Jacqueline Rabe Thomas

SEE WHAT READERS SAID

RELATED STORIES
Is the state’s vaccine rollout leaving behind Black and Latino residents?
by Jacqueline Rabe Thomas, Kasturi Pananjady and Jenna Carlesso

Rolling out the COVID vaccine to older residents first means it's more likely to go to white residents first.

Education is the cornerstone of democracy
by John J. Petillo

The events of January 6 represent an inflection point for our democracy and, in truth, for our concept of civil society. Much has already been written about the political and cultural tides that swept our nation toward these events —and a real understanding of their significance will not be possible for some time, in part because the reactions and responses to these events are still unfolding as I write.

A rebuttal to ‘A call to save arms’
by Tyler David Gavitt

A response to "A call to save arms: is vaccination really the solution?" published January 25: The aforementioned article, written by Genevieve Diamant, stands to do potentially significant damage to the efforts by the citizens and government of the State of Connecticut to bring under control the COVID-19 pandemic.

The Holocaust, history and today’s politics
by Avinoam Patt and Laura Hilton

On January 6 the world watched as domestic terrorists stormed the U.S. Capitol building in Washington, DC.  The pictures seared into our memories of this day are replete with symbols of hatred, racism, and extremism: The Confederate battle flag, the white power hand gesture, and the gallows erected near the Capitol reflecting pool. What many may not have noticed within this sea of white supremacy was the prominence of anti-Semitic images.

Sticker shock
by Eric W. Kuhn

It would award a modest amount to families making less than $203k in the first year of the program, ramping up to as much as $1,800 in year four. On a sliding scale, the money would also go to families making up to $682,000 a year. Really? That's 8.7 times the median household income in America.

Support Our Work

Show your love for great stories and outstanding journalism.

$
Select One
  • Monthly
  • Yearly
  • Once
Artpoint painter
CT ViewpointsCT Artpoints
Opinion Education is the cornerstone of democracy
by John J. Petillo

The events of January 6 represent an inflection point for our democracy and, in truth, for our concept of civil society. Much has already been written about the political and cultural tides that swept our nation toward these events —and a real understanding of their significance will not be possible for some time, in part because the reactions and responses to these events are still unfolding as I write.

Opinion A rebuttal to ‘A call to save arms’
by Tyler David Gavitt

A response to "A call to save arms: is vaccination really the solution?" published January 25: The aforementioned article, written by Genevieve Diamant, stands to do potentially significant damage to the efforts by the citizens and government of the State of Connecticut to bring under control the COVID-19 pandemic.

Opinion The Holocaust, history and today’s politics
by Avinoam Patt and Laura Hilton

On January 6 the world watched as domestic terrorists stormed the U.S. Capitol building in Washington, DC.  The pictures seared into our memories of this day are replete with symbols of hatred, racism, and extremism: The Confederate battle flag, the white power hand gesture, and the gallows erected near the Capitol reflecting pool. What many may not have noticed within this sea of white supremacy was the prominence of anti-Semitic images.

Opinion Sticker shock
by Eric W. Kuhn

It would award a modest amount to families making less than $203k in the first year of the program, ramping up to as much as $1,800 in year four. On a sliding scale, the money would also go to families making up to $682,000 a year. Really? That's 8.7 times the median household income in America.

Artwork Grand guidance
by Anne:Gogh

In a world of systemic oppression aimed towards those of darker skintones – representation matters. We are more than our equity elusive environments, more than numbers in a prison and much more than victims of societal dispositions. This piece depicts a melanated young man draped in a cape ascending high above multiple forms of oppression. […]

Artwork Shea
by Anthony Valentine

Shea is a story about race and social inequalities that plague America. It is a narrative that prompts the question, “Do you know what it’s like to wake up in new skin?”

Artwork The Declaration of Human Rights
by Andres Chaparro

Through my artwork I strive to create an example of ideas that reflect my desire to raise social consciousness, and cultural awareness. Jazz music is the catalyst to all my work, and plays a major influence in each piece of work.”

Artwork ‘A thing of beauty. Destroy it forever’
by Richard DiCarlo | Derby

During times like these it’s often fun to revisit something familiar and approach things with a different slant. I have been taking some Pop culture and Art masterpieces and applying the vintage 1960’s and 70’s classic figures (Fisher Price, little people) to the make an amusing pieces. Here is my homage to Fisher -Price, Yellow […]

Twitter Feed
A Twitter List by CTMirror

Engage

  • Reflections Tickets & Sponsorships
  • Events
  • Donate
  • Newsletter Sign-Up
  • Submit to Viewpoints
  • Submit to ArtPoints
  • Economic Indicator Dashboard
  • Speaking Engagements
  • Commenting Guidelines
  • Legal Notices
  • Contact Us

About

  • About CT Mirror
  • Announcements
  • Board
  • Staff
  • Sponsors and Funders
  • Donors
  • Friends of CT Mirror
  • History
  • Financial
  • Policies
  • Strategic Plan

Opportunity

  • Advertising and Sponsorship
  • Speaking Engagements
  • Use of Photography
  • Work for Us

Go Deeper

  • Steady Habits Podcast
  • Economic Indicator Dashboard
  • Five Things

The Connecticut News Project, Inc. 1049 Asylum Avenue, Hartford, CT 06105. Phone: 860-218-6380

© Copyright 2021, The Connecticut News Project. All Rights Reserved. Website by Web Publisher PRO