State Rep. Harry Arora: State Capitol Update on 8-30g & State Taxes

Posted on March 8, 2022

The CT legislative session is underway, and there is robust debate in various committees and public hearings. Below are some bills which have seen significant public participation.

Study of affordable housing policies and reform of 8-30g: SB 169 proposes a study of current affordable housing legislation and reform of 8-30g. Developers use the 8-30g regulation to bypass local zoning and build multi-family high-rise units. I believe this regulation needs urgent reform. This reform is opposed by legislators from big cities and progressive activists who support 8-30g in the current form.

State-wide property tax:  SB 21 imposes a state property tax on all properties assessed over $ 1.2 MM. at two mils (0.2%). This bill is a damaging proposal and is a long-term strategy to weaken town governments. Once the state imposes such a tax, one can expect that the threshold will go lower and the tax rate will go up over time. Property taxes are already very burdensome, and an additional levy is unacceptable.

Capital gains tax on high wage earners: SB 28 establishes a capital gains surcharge. This bill imposes an additional 1% tax on capital gains for high-wage earners. This bill, if passed, will likely lead to net declines in revenue by encouraging those with capital gains to move out of the state.

Expansion of property tax credit and Earned income tax credit: SB 27 increases state property tax credit from $200 to $400 for those making under a threshold. SB 29 raises the state-earned income tax credit. These offer tax relief for CT residents and have my support.

These bills now move to a final vote in the respective committees. A favorable vote will place them on the agenda of the General Assembly for debate and a vote. Please provide your input on these bills by clicking HERE.