Politics & Government
Sales Tax Increase Gains Momentum In Connecticut
A plan that increases the state sales tax with revenue going to cities and towns is gaining momentum as legislators face the budget crisis.
By Jack Kramer, Correspondent
HARTFORD, CT — As the time crunch increases on dealing with the state budget crisis – and the impact it has on the state’s 169 towns and cities – the idea of allowing each municipality to share in a portion of the state’s sales tax seems to be growing support.
The plan would be to increase the state sales tax from 6.35 percent to 6.99 percent. The revenue generated from the increase would then go to cities and towns to help them offset their contributions to the teacher retirement system.
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State legislators said the increase in the sales tax is estimated to raise about $466 million. In order to receive the funding local boards and councils would have to vote to endorse the idea.
The proposal has been talked about before – and has the support of the Connecticut Conference of Municipalities – the largest lobbying group in the state for towns and cities.
Find out what's happening in Milfordfor free with the latest updates from Patch.
A special session of the General Assembly is slated for next Thursday, June 29 to try and come up with a two-year state budget blueprint, and Democratic leaders said on Thursday of this week that it’s likely the sales tax plan would be on the table at the June 29 session.
CCM Executive Director Joe DeLong said the organization supports the tax hike to boost revenue and reduce dependence on a regressive property tax system.
However, the group’s support is “contingent on other important cost-control measures being adopted by the General Assembly,” DeLong said.
“We need to have cost containment” along with a sales tax increase to prevent the additional money coming in “being spent like we’re drunken sailors,” he added.
Betsy Gara, executive director of the Council of Small Towns, said her organization supports the legislation because “property taxpayers have had a bullseye on their backs” for too long and increasing the sales tax is “a fairer plan.”
Several other states have adopted the idea – of allowing individual towns to share in sales tax receipts – so the concept is not a new one.
Image via Shutterstock
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