The Tax Foundation released its annual ranking of states based on their overall business tax climate and placed Connecticut 47th in the country, besting both New York and New Jersey but falling short of other Northeastern neighbors. The rankings were based on personal income, sales, corporate, property and unemployment insurance ...
Surprise state property tax on second homes included in budget
Connecticut will impose a state property tax of 5 mills on secondary and vacation homes, according to figures from the latest budget proposal.
The state tax would be in addition to the local property tax already paid by homeowners and is expected to raise $32 million per year.
Under the heading of “Establish State Tax Property Tax on Seasonal and Recreational Homes,” the state property tax would affect those who keep a second home or vacation home in Connecticut.
Sen. John Fonfarra, D-Hartford, said it is estimated the tax would apply to 20,000 homes across Connecticut during a review of the revenue projections by the Finance, Revenue and Bonding Committee.
Rep. Chris Davis, R-Ellington, and ranking member of the finance committee, questioned Fonfarra on how the state would define a seasonal or recreational home.
Fonfarra could not offer any specific language but assured Davis that it would be included in the budget. Davis was concerned the law could affect real estate brokers who own multiple homes.
Davis said such a proposal was never discussed during the legislative session and is “one that needs a lot of examination depending on the definitions of things and who is truly impacted by this.”
Davis said he looks forward to debating whether or not an individual who “works hard and owns an additional home on a lake,” should be charged an extra tax.
A coalition of public sector unions in Connecticut are running advertisements on television and social media calling for increasing taxes on the wealthy and list off the names of Connecticut’s billionaires they feel should be targeted. The ads come just two months after state employees received a second 3.5 percent ...