Lamont Releases 'Targeted Property Tax Cut' Plan

Greenwich resident and Democratic gubernatorial candidate Ned Lamont this week released a new tax cut campaign pledge aimed at benefiting Middle Class families.

The proposal would "provide working families with tax relief by restoring and expanding the property tax credit and targeting relief at middle-class families who are paying a disproportionate percentage of their income on property taxes."

Below is Lamont's release explaining the plan:

In his first year, Lamont will address the fiscal crisis in Connecticut, and will phase in the property tax cut plan over four years. The targeted proposal will offer the average beneficiary nearly $700 annually.

Connecticut has become one of the most expensive places in the country to raise a family or start a business. For Connecticut to compete with surrounding states, Lamont will decrease the financial burden placed on middle class families.

“This is a realistic plan to spur economic growth and give the middle-class relief, because they’ve paid enough. Both by restoring and expanding the property tax credit for working families and providing smart property tax relief to the middle class, we’ll reduce the financial burden on our residents and attract new businesses, jobs and residents to our great state. We need to make Connecticut more affordable – and this sensible tax cut plan will do that,” Lamont said.

In the First Biennial Budget

• In the second year of the first biennial budget, the plan reverses Malloy’s tax hike by increasing the property tax credit by 50 percent and expanding access to more middle-class taxpayers. Singles earning up to $116,500, heads of households earning up to $138,500, and joint filers earning up to $160,500, will get relief of up to $300 from property taxes paid on a residence or car.

• That’s $165 million in new property tax relief for 900,000 taxpayers in households with more than 2 million Connecticut residents.

• Roughly half of those 900,000 taxpayers will see property tax relief for the first time since 2015.

“Half of the eligible residents would be receiving much-needed property tax relief for the first time in four years. As governor, I am committed to creating a budget that puts Connecticut residents first,” Lamont said.

In the Second Biennial Budget

• After beginning to stabilize Connecticut’s finances in our first biennial budget, the plan will deliver targeted relief for the hardest-hit working families in the second biennial budget.

• There are nearly 350,000 taxpayers across the state who pay an enormous percentage of their household income in property taxes and who would qualify for much-needed targeted relief. More than 900,000 people and their families in Connecticut who spend at least 6.5 percent of their income on property taxes – and many who spend as much as 12 percent – would benefit.

• That’s $185 million in long-overdue relief to working families who pay a disproportionate percentage of their household income on property taxes, providing them with up to a $1,200 credit.

• The average beneficiary under the targeted relief tax plan will receive $693 annually.

• To shore up property tax relief for Connecticut’s seniors, we’ll restore the Malloy Administration’s state funding cut to the municipal property tax credit program – and add new funding to cover 25,000 senior renters under the same program.

• The program will restore state funding to the municipal property tax credit for seniors and cover senior renters under this program for the first time.

“The first two years will be critical in getting our state back on solid financial footing. Once we address our fiscal challenges, we can establish broader tax relief aimed families who need it and begin to reform our broken tax system. While some promote pie-in-the-sky tax promises that would result in gutting education, transportation, and all that already makes our state great, this is a realistic plan to help the middle class,” Lamont said.

Image via Shutterstock

To sign up for Greenwich breaking news alerts and more, click here.