Fiscal outlook reshapes tax results

(May 9, 2008) Lawmakers this year considered a number of varied proposals dealing with property taxes, business tax credits, sales taxes and taxpayers’ rights.

As the state’s fiscal situation worsened this Spring, it was understandable that it would not have been fiscally responsible to adopt some of these measures. Subsequently, only one measure gained approval, and it concerns the revaluation of property.

It was encouraging, however, that lawmakers rejected the bulk of the property tax measures because most were not reforms, but simply ways to shift who would be paying the tax.

Also encouraging was the overwhelming support in the legislature for a proposal that would have strengthened taxpayers’ rights. The Finance Committee, Judiciary Committee and Senate unanimously approved the proposal that would have reversed the erosion of taxpayers’ administrative and judicial rights and protected their privacy. It also would have clarified the standard of proof in most tax appeals as the appropriate and fair “preponderance of evidence” benchmark.

Only because the session ran out of time was the proposal not adopted. Next week, the Government Affairs Report will have more detail about this year’s tax developments.

For more information, contact CBIA’s Bonnie Stewart at 860-244-1925 or bonnie.stewart@cbia.com.