O’Dea Agrees with Local Leaders: Car Tax Proposal Will Hurt Small Towns

HARTFORD – With today’s public hearing on the Governor’s Car Tax proposal, State Rep. Tom O’Dea (R-125) applauded the testimony by the Council of Small Towns which included the First Selectman of New Canaan, Robert E. Mallozzi, to the legislature’s tax-writing Finance committee opposing Governor Malloy’s plan because the towns would not be reimbursed for the lost tax revenue.

Gov. Dannel P. Malloy in February released his $41 billion biennium budget which included eliminating Connecticut’s property tax for cars worth less than $28,500 in addition to more spending and borrowing. Local leaders say eliminating the tax would cut at least $600 million in revenue annually and could force local leaders to raise property taxes.

According to the non-partisan Office of Fiscal Analysis, New Canaan would lose approximately $3.5 million in car tax collections while Wilton would lose around $4 million.

“Unlike Governor Malloy’s car tax proposal, former Governor Jodi Rell made the towns whole by compensating towns for any lost car tax collections by creating a new state grant. While I support all tax cuts, this new proposal leaves towns struggling to make up the missing revenue, which would mean either higher property taxes or local spending cuts,” said Rep. O’Dea, a member of the Transportation Committee.

“If there is going to be a savings for residents, which I support, the state should cut its spending rather than passing the buck to the municipalities to try and figure out.”

“The issue of unfunded state mandate relief must be addressed this legislative session. The state must keep towns whole at this very difficult economic time. If we’re going to eliminate the car tax, the state must provide municipalities with the lost revenue in the form of a grant and cut state spending elsewhere rather than increasing our debt,” said O’Dea.