Property Tax Proposal to Hike Taxes on Job Creators
A proposal in the Planning and Development Committee would create a more complicated property tax system likely to increase property taxes on commercial and industrial job creators.
Certain sections of SB 1 would make Connecticut a much less desirable place to locate a business.
First, the proposal creates an additional property tax over and above what is currently exists.
The extra property tax revenue–a so-called “municipal contribution to the area-wide tax base”– is to be generated solely from an increase in the assessed value of all commercial and industrial property in a municipality over the 2013 base year.
The increase is not pegged solely to new construction, but could be all factors including new construction, market value appreciation, and revaluations.
If adopted, this may financially encourage municipalities to inflate the assessments of commercial and industrial properties in an effort to “make back” some of the revenue that may have to be shared with the region.
Also under SB 1, commercial and industrial property would be taxed at its own mill rate. This is a discriminatory classification scheme since it’s extremely likely that this mill rate will be higher than the residential mill rate.
Clearly a multi step, discriminatory property tax classification scheme that unfairly increases property taxes on job creators will make Connecticut a less desirable place to locate.
For more information, contact CBIA’s Bonnie Stewart at 860.244.1925 | firstname.lastname@example.org | @CBIAbonnie
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