Sales Tax Hike Proposed By Legislative Democrats

HARTFORD, CT — Democratic legislators called for a hike in the state sales tax to 6.85 percent, up from the current 6.35 percent, to help close an estimated $3.5 billion budget gap and restore education cost sharing funds to municipalities.

Gov. Dannel Malloy said he wasn’t in favor of the tax hike.

“I think we shouldn't lead with discussions of revenue,” Malloy said.

The legislative Democrat plan would restore much of the lost ECS funds with the tax hike. Under Malloy’s executive action plan only about 30 school districts would maintain their current ECS funds while 85 would lose them entirely. The plan would go into effect in October, but could be avoided if a budget is passed before then.

For many communities it would force a property tax hike to make up for millions of lost dollars.

The Democrat plan also calls for a 1-percent surcharge on restaurant and hotel transactions.

Democrats hold a majority in the state house and are tied with Republicans in the senate. Even if the tax plan were to pass the house, it would face a greater battle in the senate. The tie-breaking vote is held by Lt. Gov. Nancy Wyman.

House Minority Leader Themis Klarides said she wasn’t in favor of tax increases.

“Quite frankly I’m still very frustrated with this process,” she said. “We keep coming to the table and nothing actually happens.”

She said she was more in favor of systemic changes of how Connecticut operates.

House Speaker Joseph Aresimowicz said that work is being done to avoid Malloy’s education cuts.

“What we all heard from our constituents on Friday as far as the executive order it is absolutely unacceptable,” he said. “We are going to do everything we can to avoid those things from happening on Oct. 1.”

Democrat Senate President Pro Tempore Martin Looney said much of Tuesday’s discussions centered on things like regionalization and how state dollars could be more efficiently spent at the local level.