Action Needed on Harmful Tax Bill

The Chamber is calling action on Senate Bill 701!

SB 701 would allow the local governments in 18 “targeted investment communities” (TIC's) to exempt the first $100,000 in assessed value from most residential properties in computing the local property tax. Waterbury is labeled as a Targeted Investment Communities.

Known as a “homestead exemption,” this proposal would shift millions of dollars in taxes onto commercial and industrial taxpayers. The idea has been around a long time and every session the bill has been rejected by the legislature because of the impact it would have on municipalities that adopted it. The resulting increase in the mill rate would undoubtedly affect manufacturers that still make up an important part of Waterbury. Larger Manufacturers might get by but as we know in the Brass city most of shops are small to midsize manufacturer that might not survive. This bill has steam behind it because the proponents feel that just because the Legislation is in place does not mean the towns have to enact the tax exemption. We know that taxpayer groups and other advocates will fight for enactment and if done the businesses in our towns will pack it up and move elsewhere. This legislation will do nothing but hurt our city and state because once these 18 towns get the exemption every other town will push for it.

It is better that municipalities are never given the chance to adopt the exemption and that towns find other ways to grant relief to all taxpayers.