Property tax dependence is killing our state, but we keep failing to fix it. Connecticut has the third-highest property taxes in the country; we are fifth in property taxes as a percentage of state revenue. Property tax dependence is even more extreme for our cities and towns. In Connecticut, 60 percent of local revenue comes from property taxes, compared with 30 percent across the nation. Unlike other property tax-dependent states such as New Hampshire and Massachusetts, we do little to equalize revenue between property rich and poor municipalities. This exacerbates inequality, undermines efforts at regionalization, and kills economic development in our struggling cities. Yet another legislative session has come and gone without any effort to address property tax dependence.

Property tax dependence undermines the health of our struggling cities. Plagued by low-value real estate, cities must raise property taxes higher than surrounding towns. The annual cost of these taxes is capitalized into sales prices, driving property value even lower. This hits both residents and businesses hard. In Hartford, for example, commercial property taxes are double residential rates, driving businesses away from the city. Making matters worse, in cities such as Hartford, New Haven, and Bridgeport, much of the land base is occupied by government and nonprofit entities that don’t pay property taxes. Although the state makes payments in lieu of taxes (PILOTs) on state property, PILOTs are inadequate and inconsistent.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]