Connecticut Senate Bill SB00776

Connecticut 2023 Regular Session

• Introduced: 1/19/23
• Refer: 1/19/23

Caption

An Act Concerning A State-wide Property Tax On Certain Residential Real Property.

Impact

The introduction of SB00776 is significant as it represents a targeted approach to property taxation, focusing on wealthier homeowners while aiming to provide necessary financial support for educational equity across the state. By directing funds to equalization aid grants, the state seeks to alleviate the financial burden on lower-income municipalities, thereby promoting a more equitable distribution of educational resources. If enacted, this could enhance the educational opportunities available to students in underfunded districts.

Summary

SB00776 aims to establish a statewide property tax on residential real properties with assessed values exceeding 1.5 million dollars. Specifically, the bill proposes a tax rate of 1 mill for properties valued between 1.5 and 2 million dollars, and a rate of 2 mills for properties valued at 2 million dollars or more. The revenue generated from this tax is intended to support the funding of equalization aid grants as outlined in the state statutes, which play a crucial role in addressing disparities in school funding among municipalities.

Contention

Despite its intentions, the bill is likely to face criticism and debate, particularly concerning the fairness of imposing higher taxes on affluent property owners. Opponents may argue that the bill could deter high-income individuals from residing in or moving to the state, potentially impacting the local real estate market. Additionally, there may be concerns regarding how effectively the generated revenue will be utilized and whether it will sufficiently address the disparities in educational funding it aims to resolve. Proponents, however, may contend that the measure is a necessary step toward achieving social equity in education funding and justifies the tax burden on those who can most afford it.