In fact, the average Connecticut homeowner pays $6,096 annually in property taxes.Ī financial advisor can help you understand how taxes fit into your overall financial goals. That is reflected in the state’s high effective property tax rates. Since there are no local income or sales taxes in Connecticut, local governments must collect most of their revenue through property taxes. That makes Connecticut among the more tax-friendly states for shoppers. The sales tax rate of 6.35% is also high relative to other statewide rates, but because there are no local sales taxes in Connecticut, that is the maximum rate levied anywhere in the state. Income tax rates range from 3% to 6.99% that top rate ranks as slightly above the U.S. The state of Connecticut generates most of its revenue through an individual income tax and a statewide sales tax. Gas tax: 25 cents per gallon of regular gasoline, 44.10 cents per gallon of diesel.Property tax: 1.96% average effective rate. “I am interested in making sure that those who can contribute to our state, and at a level that is appropriate. “Income inequality is steep in Connecticut and increasingly so,” she said. 15 and April 30.īut Horn agreed that tax fairness has become an increasing issue of concern at the Capitol and the issue won’t be going away any time soon. 10, with subsequent forecasts coming on Jan. Analysts will release the first of three assessments of state revenues this fiscal year on Nov. Next year’s tax debate also will depend heavily on the state’s overall fiscal picture. Maria Horn, D-Salisbury, House chairwoman of the Finance, Revenue and Bonding Committee, said she would wait to see the specifics of Looney’s new bill before commenting on its merits. Josh Elliott, D-Hamden, founder of the new House Democratic Tax Equity Caucus, said he favors a larger capital gains surcharge than Looney recommended last session.Įlliott said moderates and conservatives shouldn’t underestimate the growing concern about income and wealth inequality.Įven though surcharge legislation has stalled in the face of “a governor who is hostile” to adding progressivity to the tax system, lawmakers have passed laws in recent years mandating more frequent tax studies and other analyses of the burdens placed on poor and middle-income households, Elliott said.Īll of this is “creating a scenario,” Elliott added, “where the governor’s office and leadership have to respond to the question: Why aren’t you doing more?” “There are resources that we can tap into, and we’ll need to if the state has a desire to eradicate poverty and be the most family-friendly state in the country.” “Connecticut is one of the wealthiest states in the wealthiest country in the world,” said Emily Byrne, Connecticut Voices’ executive director. The Senate leader isn’t alone in this argument.Ĭonnecticut Voices for Children, a New Haven-based policy group that has argued for progressive state tax reform for years, endorsed a capital gains surcharge last December during its annual budget forum, projecting this could generate as much as $300 million per year. It’s a way “to make sure the income tax is going to continue as a healthy revenue generator.” Both the administration and Comptroller Sean Scanlon have warned of global economic uncertainty going forward.Ī capital gains surcharge on wealthy families “is a way of once again trying to build more equity into the system,” or ensuring the relief passed last year doesn’t go away if finances slip. Lamont’s budget office is projecting the current fiscal year will close with $968 million left over, a 4% surplus. Most of the promised funds still aren’t being shared with communities.Īnd while state government enjoyed a staggering $4.3 billion surplus in 2021-22 - equal to nearly one-fifth of the General Fund - and a $1.9 billion surplus last fiscal year, the black ink is retreating.Ĭonnecticut is tied with Wyoming for the highest levels of _ in the country as of 2021.ĭo you know the answer? Play this week's news quiz to find out. In fact, they could be a key to ensure that tax relief lasts for a while.Īs state government struggled with a sluggish economy and frequent deficits between 20, a state income tax credit that offsets a portion of local property tax burdens for middle class households was chiseled down from $500 to $100, costing families hundreds of millions of dollars annually.Ī landmark initiative to share more than $300 million per year in state income tax receipts with municipalities was passed with much fanfare in 2015 - then almost immediately cut and suspended due to deficits. Looney said the same middle-class tax relief the Lamont administration is touting this year is one of the main reasons why higher taxes on Connecticut households that don’t have to work makes sense.
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