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Case Pushes use of Federal Relief Dollars to Cut Local Taxes

Posted on April 14, 2022


HARTFORD—State Rep. Jay Case (R-Winsted) and his fellow Republicans called on the attorney general to take action in order to expand the scope of what pandemic relief dollars can be used for – namely tax relief.

“Lowering the tax burden on Connecticut residents is critical to the success of the state’s overall recovery effort from the impacts of the pandemic,” said Rep. Case. “Inflation and global conflicts are only fueling the hardship that too many residents are facing, using these resources will help us to deliver immediate financial relief.”

Case joined Republicans during Wednesday’s House of Representatives session in proposing an amendment (LCO 4582) to require Attorney General William Tong to file legal action against the U.S. Department of the Treasury. Current law does now allow for ARPA funds to be used in the reduction in net tax revenue, but rulings from around the country have deemed the restrictions on the use of federal resources as unconstitutional. The amendment failed by a 48 to 93 vote.

“The precedent for ARPA funds to be used for tax relief policies has been set by a slew of other states. It’s unfortunate that politics got in the way of bringing a solution to the businesses and residents of the Northwest Corner.”

The following states have successfully challenged the US Dept. of Treasury on the restrictions it’s placed on ARPA funds: New Hampshire, West Virginia, Alabama, Arkansas, Alaska, Florida, Iowa, Kansas, Montana, Oklahoma, South Dakota, South Carolina and Utah.

Case and his fellow Republicans have put forth several bill proposals that would lower taxes. These proposals include the repeal of the Highway User Tax and expanding the state’s property tax credit to $500.