Hartford Courant

Rell to revive proposed cap on local property tax increases

Associated Press

December 20, 2007

A proposal to cap local property tax increases below 3 percent yearly will be revived in the 2008 legislative session, Gov. M. Jodi Rell said this week.

Rell's proposal, which was rejected this year by Democrats who control the General Assembly, would require Connecticut's 169 towns and cities to limit their annual property tax increases. The only exceptions would occur in municipalities where residents vote in referendums to approve higher levels.

"The property tax cap will be back, which will help cities and towns," Rell said.

Nationwide, 43 states have limits on property taxes or spending, and 29 limit property tax increases.

Rell's proposal has drawn strong reactions in the past, and some Democratic legislators said this week they believe it could force some municipalities to cut services or compel the state to help struggling communities who need increases above 3 percent.

Hartford Mayor Eddie Perez and New Haven Mayor John DeStefano, both of whom are Democrats, also have opposed the plan.

Senate President Pro Tem Donald E. Williams Jr., D-Brooklyn, said Thursday he doubts Rell's concept will garner much support.

"We looked at it last year and decided it was not a good idea," he said. "I think it's going to hit the same obstacles it did last year."

Senate Majority Leader Martin Looney, D-New Haven, said Rell's proposal would work only if teamed with state money to help cities and towns. He said he worries mayors might be forced to cut services if certain costs increase, such as pension and energy costs, over which the communities have limited control.

"It is often a very different thing in theory than in practice," Looney said. "The crunch falls on municipal employees and supplies, and safety equipment and police and fire overtime. It's sort of a punitive and arbitrary thing, and not realistic."

Rell's original proposal allowed communities to override the 3 percent cap if voters approved it during referendums.

In addition to that provision, Rell's plan also would have let towns disregard the cap in certain emergencies such as major fires, hurricanes or other catastrophes. Large expenses, such as construction of a new sewer plant, also would be exempted from the total.