A new white paper on property tax reform - Connecticut Property Taxes 2015: Time for a Change - has been released by the Property Tax Working Group of 1000 Friends of Connecticut. The paper gives an overview of the issues and concerns the group sees with the current property tax structure, including the state’s heavy reliance on local property tax to fund the government. Local property taxes account for 45% of state and local revenue which is more than most other states.
The paper provides a framework for property tax reform:
- Control spending by rethinking how we pay for necessary services
- Distribute state revenue more fairly to towns and taxpayers
- Fully fund Payment in Lieu of Taxes (PILOT) programs for state property, private colleges and non-profit hospitals, and for manufacturing machinery and equipment.
- Close the “need-capacity gap.”
- Increase direct state funding for the cost of special education.
- Provide increased funding to ensure the adequacy of K-12 education.
- Consider Circuit Breakers.
- Consider Homestead Exemptions.
- Consider Property Tax Base Sharing.
- Provide another source of revenue to municipalities, such as a share of the statewide income tax, sales tax or a new statewide property tax.
Read the full paper Connecticut Property Taxes 2015: Time for a Change.