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Thursday, February 07, 2013

Malloy Proposal to Cut Car Tax Could Cost Westport $4.5M

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By Keith M. Phaneuf and Jacqueline Rabe Thomas

After wading through a myriad of proposed cuts and grant increases today, both municipal officials and state legislators were fearful that communities would lose ground under Gov. Dannel P. Malloy’s new budget plan.

While the municipal grants segment of the Malloy plan featured a mix of cuts and increases that largely balanced out, the governor’s plan to end municipal taxes on many, if not most, motor vehicles would leave cities and towns hundreds of millions of dollars in the hole.

[Westport Finance Director Gary Conrad told the Board of Finance tonight that a preliminary estimate is that Westport could lose at least $4.5 million in tax revenue annually under the governor’s car tax proposal.]

But the administration defended its proposals, saying they reflect a shift toward the most essential priorities—education, job-creating capital projects and middle-class tax relief—in tough fiscal times.

“Connecticut families have had to buckle down, make tough decisions, pay their bills, make sacrifices and find compromise, and at the same time keep doing whatever they can to invest in their future,” Malloy said in his budget address. “And so must their government.”

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Posted 02/07 at 01:46 AM

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