State property taxes a heavy load on municipalities: CCM issues annual report it hopes will affect election debates

debate

The Connecticut Conference of Municipalities continues its annual battle with municipal property taxes today, issuing a report it hopes will influence legislative and congressional races.

“Towns and cities in Connecticut are responsible for providing the majority of public services in our state: pre-K-12 education; public safety; roads and other infrastructure; elderly and youth services; other social services; recreation; and wastewater treatment, among others,” says Matthew Galligan, town manager of South Windsor and CCM President. “They must do so while meeting numerous mandates, often underfunded or unfunded, from both the federal and state governments. In Connecticut, however, there is one revenue source that provides the majority of local funding — the property tax.”

The report finds that in the 169 towns and cities, property taxes on residents and businesses generated $9.2 billion.

“A property-tax dependent system only works fairly if two conditions exist: the property and income wealth of a community can generate enough property tax revenue at a reasonable cost to taxpayers to meet the need for services; or state aid is sufficient to fill local revenue gaps,” noted Ron Thomas, director of Public Policy and Advocacy for the CCM. “For many communities in our state, neither condition exists. It is increasingly clear that the over-reliance on the property tax is inadequate for funding local government services in particularly preK-12 public education, and is no longer advisable nor sustainable.”

The report finds:

Property taxes are the state’s biggest state-local tax, accounting for more than 70 percent of all local revenue.

It is regressive and hits lower-income residents harder.

Connecticut is more dependent on property taxes almost any other state, with a per capita burden of $2,522, twice the national average.

The CCM wants the state to:

* Reform education, including a plan to have the state assume all special-education costs.

* Restore the state revenue-sharing grant.

* Achieve full funding for the state’s PILOT program, payments in lieu of taxes for cities that host colleges and hospital, which are exempt from property taxes.

* Offer more financial for municipalities that share operations, such as emergency dispatching and public works vehicles.

* Ending so-called unfunded mandates, such as in-school suspensions for troublesome school students.

During this election season, CCM also plans to affect election debates by introducing reports on:

  • Education Finance Reform
  • Unfunded State Mandates
  • Infrastructure and Transportation Reform
  • CT’s Distressed Municipalities