January 9, 2008

PROPERTY TAX RELIEF MAY BE NEAR

A New Haven Register Editorial

Property tax relief will be on the state's legislative agenda again this year thanks to Gov. M. Jodi Rell's decision to revive her tax cap proposal.

With tax payments due, many homeowners can only hope that the legislature will take up either Rell's version that would cap tax increases at 3 percent or an alternative proposed by Rep. Patricia A. Dillon, D-92, that would limit the tax to no more than 5 percent of household income.

High local property taxes have a corrosive effect on communities that have little economic growth or new tax revenue. Confronted with high bills, businesses and homeowners leave and property values suffer.

Rell's proposal is not as restrictive as critics have charged. Towns could tax and spend more if higher taxes won approval in a referendum. Many state towns already have budget referendums by petition. Under Rell's plan from last year, the referendum would be automatic, rather by petition.

The referendum would put a focus on state municipal labor costs that have risen from 6.3 percent to 8.5 percent in the last three years and health care costs that have increased about 15 percent annually.

Although some municipal leaders have treated a property tax cap as an outlandish idea, Massachusetts has a 3 percent cap. California limits assessment increases to 2 percent annually.

Connecticut is one of the few states left that has not put some limit on property tax increases or local government spending. Some form of spending restraint and local tax relief is overdue.