Harmful Tax Bill to Hit Many Manufacturers
4/8/2008
The state Senate is considering a bill that would significantly raise manufacturers’ property taxes in certain municipalities in Connecticut by allowing the local government to exempt up to $100,000 from the assessed value of residential property.
This would shift millions of dollars in taxes onto commercial and industrial taxpayers. Manufacturers would be hardest hit because of the large amounts of personal property that they own.
Senate Bill 701, An Act Concerning A Homestead Exemption, has passed the Finance Committee and is now awaiting action by the Senate.
Proponents of the bill say it is needed to help lower residential property taxes. They also say the municipality would only have the right to provide the exemption – not that they will enact any exemption. But our experience has shown – in Connecticut and in other states – that once this law is passed, special interest groups will work to convince the municipalities to enact the homestead exemption, driving up already high property taxes on manufacturers.
Although the town in which your company is located is not currently being considered for this option, there will likely be amendments to expand it to all municipalities. And even if it passes in its limited form, there will soon be attempts to grant the exemption in all municipalities.
Take action today
Please contact legislators in your town today and urge them to reject this costly measure, especially during these difficult economic times.
