
I write today in opposition to Proposed Bill No. 171, “An Act Establishing a Statewide Tax on Real Property.”
Senator Looney, the highest-ranking Democrat, would have the taxpayers of this State believe that his bill is a “Mansion Tax” and that only the very wealthy would be affected.
Senator Looney calls it a “progressive tax” that 1) only targets those with high-value homes and 2) that such a tax would “provide predictability.” This isn’t a mansion tax, but a tax that will hit regular people.
Senator Looney wants to create a new statewide tax on residential and commercial property.
The rate would be one mill — or $1 for every $1,000 of assessed value — with one big qualifier. The first $300,000 of assessed value would be exempt. And because Connecticut assesses property at 70% of its market value, the proposed levy would target houses, commercial buildings, and lots marketable at about (updated with correct dollar amount) $430,000 or more. Seymour’s town has 225 homeowners, 76 businesses, and several privately-owned apartment complexes that fall under the proposed mansion tax.
The only “predictability” such a tax hike would provide is that it would prompt the wealthy and middle class to “predictably” leave Connecticut at an even faster rate.
Governor Lamont is well aware of this elementary fact as to why he opposes this absurd bill. Senator Looney stated that “Municipal property taxes are as high as they are primarily because the state has not been able to raise enough revenue to provide municipal aid,” Senator Looney added. “We are, after all, one state, and we need to look at [taxes] on a statewide basis, and not a hyper-local basis.” Senator Looney also said his caucus hopes to channel about $130 million in additional state aid annually into poor cities and working-class suburbs”.
Meaning the taxes collected would not go to the cities and towns the houses, commercial buildings, and lots are located but other cities and towns.
Senator Looney’s Bill is ill-timed as it comes during an international pandemic. COVID-19 has created massive economic insecurity.
Approximately 190,000 Connecticut residents are still receiving weekly unemployment benefits, and many small businesses are in a fragile, tenuous state. This property tax, therefore, threatens our very economic stability.
Senator Looney’s self-proclaimed “progressive tax” to provide cities with property tax windfalls at the expense of all other communities is NOT what Connecticut needs at this time.
The bill would hit the middle class in every single Connecticut community!
In sum, a statewide mill rate is not the answer, especially during an international crisis. It is poor judgment and leadership to even propose additional taxes on our residents at this unprecedented time. I, therefore, urge our legislators to reject this bill summarily.
First Selectwoman Annmarie A. Drugonis
Town of Seymour