City gets funding to offset motor vehicle tax cap

Torrington set to receive $603,276

TORRINGTON — Facing ongoing budgetary challenges, the city received a bit of good news this week, as the Office of Policy and Management released funding to offset a failure to reimburse the city, as well as two other communities, for the cap on motor vehicle tax rates in Connecticut.

Under SB 1502, which implemented the state budget for the 2018-19 biennium, the state Legislature raised the rate at which motor vehicle taxes can be assessed from 32 to 39 mills, noting that municipalities would be reimbursed for the difference between that figure and their respective tax rates in the assessment year that began Oct. 1, 2013.

Hamden, Bridgeport and Torrington conducted revaluations after that assessment year which pushed their respective tax rates beyond 39 mills — to 45.36, 45.75, and 54.37 respectively. This was not factored into the reimbursement formula in the FY 2018 state budget.

Torrington is set to receive $603,276, Hamden $856,025 and Bridgeport more than $3 million as a prorated share of $4.5 million in available funding, according to OPM Public Information Officer Chris McClure.

Norwich, in the same situation, previously received funding to address the matter under another grant program, McClure said.

Torrington Mayor Elinor Carbone said the allocation would be of significant use to the city, given other pressing financial requirements at hand. The community has lost $2.1 million in potential tax revenue as a result of the motor vehicle tax cap, Carbone said.

“As we continue to suffer losses in municipal aid, have been forced to take on state programs such as the renter’s rebate program and continue to look for ways to manage the state mandates that come with the alliance district designation, this fractional share of the motor vehicle tax revenue is desperately needed to offset our city and school budgets,” Carbone said in a statement.

Senate President Pro Tempore Martin Looney, D-New Haven, announced the decision in a Wednesday release, noting he had

previously asked OPM Secretary Ben Barnes and Gov. Dannel P. Malloy to distribute the funds.

The revaluations were accounted for in the FY 2017 budget approved by the legislature, Looney said in the release.

It was assumed this would continue in the FY 2018 budget, “given our strong efforts to keep Alliance Districts (which all

three of these towns are) to be kept whole as much as possible in terms of state aid,” Looney said.

State Sen. Kevin Witkos, R-Canton and Sen. Craig Miner, R-Litchfield expressed their pleasure that the development in a release, as did State Rep. Michelle Cook, D-Torrington.

“I am thankful for the strong bipartisan effort encouraging the administration to release the funding owed to our cities and towns,” Witkos said. “Last year lawmakers worked

hard to craft a bipartisan budget that minimized reductions to municipalities as much as possible. It was disappointing to see the administration penalize many towns and cities with midyear holdbacks and other policy decisions, but seeing this funding released now is a positive sign and I thank the governor for reconsidering.”

“I’m relieved that OPM is finally acting to relieve the unfair tax burden that has been placed on Torrington. Our residents should not

have to suffer cutbacks in services because of a state budgeting error, and these funds will significantly lessen the burden on taxpayers,” Cook said. “While this does not address the entire funding shortage, it is an important step toward making our town whole. I will continue to push for the intent of the car tax cap legislation to be honored and the full funding restored.”

Carbone