The Rell administration is open to a compromise with Democrats on its plan to eliminate the property tax on cars, the state’s budget chief told New Haven’s Rotary Club Tuesday.
Budget chief Robert Genuario was the featured speaker at a Rotary lunch at the Quinnipiack Club. He struck a conciliatory tone on the administration’s proposal to eliminate the property taxes cities and towns collect on individuals’ cars. That proposal has received the most attention as the legislature weighs Republican Gov. Rell’s proposed $16 billion budget. (To read about the details of the plan and the reaction to it in Hartford, click here.)
In his speech, Genuario reiterated the administration’s argument that the tax is inefficient and unfair. He spoke of how a person in Waterbury pays more tax on a 2000 Chevy Cavalier than someone in Greenwich pays on a 2005 Mercedes Benz.
Then he noted that some in the Democratic-controlled legislature are suggesting amendments to the proposal or different versions.
“[Gov. Rell] has never taken the position that it has to be exactly as she proposed it. We are willing to work with legislative leadership to find some common ground,” Genuario said.
One self-identified Rotarian Democrat criticized the proposal during a question-and-answer session. “At a time when we need job growth, rather than a way to bring in jobs or develop the grand list, it does nothing,” he said. “It’s just a waste of money.”
Unflustered, Genuario said he “appreciates” the comment. “There are some folks who agree with you. We’ll see what happens.”
He further acknowledged that, since the proposal pays for itself in part by eliminating the $350 property-tax credit, it does “create winners and losers.” Some people who don’t own cars but do own homes will pay more. But the vast majority of people in Connecticut will come out ahead under the proposal, he said. He also noted that municipalities have pushed the state for an alternative to the property-tax system. He characterized the car-tax proposal as that kind of property-tax reform.
Asked after the speech what specific changes are on the table, Genuario mentioned a proposal to maintain the property tax credit for people over 65 years old who don’t own cars. The administration is considering that idea, he said. He also mentioned State Sen. Don Williams’ bill to eliminate the property tax on manufacturing equipment. “My guess is a final package will include pieces of both” that idea and the car tax cut, he said.
