CT Lawmakers Issue Another New Position On Whether To Increase Sales Tax

HARTFORD, CT — Democrats are now working on a budget plan that doesn’t include a sales tax hike after some members of the party voiced opposition. Democrats earlier this year proposed a 6.85 percent sales tax up from the current 6.35 percent. Gov. Dannel P. Malloy criticized a sales tax increase, but then included a raise to 6.5 percent in his latest budget proposal that was released late last week. He called the measure a compromise.

“The Senate was not comfortable with that so it was our opinion as house Democrats that we would drop that off of our proposal,” said House Speaker Joseph Aresimowicz.

A proposal to have a seven percent tax on restaurants is still up in the air, he said. (Sign-up for Patch newsletters and alerts here.)

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Tolls have not come back into the discussion and there have been only a few discussions of legalizing recreational marijuana. Aresimowicz said he wouldn’t take any option off the table and that there would be no revenue surprises for the public.

The goal remains to have a vote Thursday on the budget. Legislative Democrats have considered whether to pass a budget with a simple majority and the governor’s signature or to pass it with a greater majority without the governor’s signature. The second option would require at least some Republican support while the first could be done strictly with Democrat votes.

A more progressive tax increase would be increasing the real estate conveyance tax, which is what is paid when a home sells in the state, said Senate President Pro Tempore Martin Looney. The current .75 percent rate for home sales under $800,000 would increase to 1 percent while home sales over that amount would increase from 1.25 percent to two percent. Under Malloy’s latest budget proposal it is estimated to bring in more than $50 million extra in fiscal year 2018 and $77.3 million in fiscal year 2019.

Both Republican Senate President Pro Tempore Len Fasano and House Minority Leader Themis Klarides said that Democrat proposals to date amount to kicking the can down the road for Connecticut’s fiscal woes and provide any structural changes into how the state does business.

Both Republican leaders said thinks such as spending and bonding caps an’t be agreed on.

“If we can’t agree to those important things then there is no reason to be discussing the numbers,” Klarides said.

Legislative Democrats weighed making a deal with Republican or the governor and it appears they will side with Malloy, Fasano said. The move isn’t a surprise.

Looney said that there are several structural changes in the budget outline and includes both Democrat and Republican proposals.

Image of Aresimowicz via Jessica Hill/AP