Connecticut Citizens’ Assembly proposes property tax reform

The Connecticut Citizens’ Assembly on Property Taxes has released a series of recommendations aimed at reducing the tax burden on residents and businesses. Developed in collaboration with the Connecticut Conference of Municipalities, Yale University, and the University of Connecticut, the plan seeks to reform municipal funding systems.

A central proposal involves reinstating tolls on interstate highways to generate an estimated $950 million in annual revenue. These funds would be used to offset the elimination of the municipal motor vehicle tax, potentially providing relief to car owners without forcing municipalities to raise other taxes. The assembly notes that approximately 40% of toll revenue could come from out-of-state drivers.

Additional recommendations include: • Implementing a tax surcharge of at least 1% on annual incomes exceeding $1 million to fund state aid to towns and cities. • Having the state assume full costs for special education, which currently fall on local school districts. • Incentivizing the regionalization of educational services and promoting inter-municipal service agreements.

Critics, including members of the No Tolls CT group, have expressed skepticism, warning that new tolls could become a continuous financial burden on the middle and working classes.