Rutigliano, House Republicans: While Democrats Mail Out Checks, New York Is Cashing in on Connecticut

Call for Permanent property tax relief

HARTFORD—As Connecticut Democrats tout one-time rebate checks as property tax relief, House Deputy Leader, State Rep. David Rutigliano (R-123) and the Connecticut House Republicans are calling on the General Assembly to address a structural revenue problem hiding in plain sight: New York's "convenience of employer" rule, which diverts millions in Connecticut-earned income tax dollars to Albany every year. And while New York has been winning this fight for years, Connecticut's governor and attorney general have been silent.

Rep. Rutigliano said, “Families in Trumbull and across Fairfield County are doing everything right—working hard, often from home here in Connecticut—yet their income tax dollars are being shipped to Albany instead of supporting the communities where they actually live. That’s money that should be helping our towns fund schools, reduce property taxes, and invest locally.”

Under New York's aggressive "convenience of the employer" rule, remote workers who are Connecticut residents employed by New York companies are treated as working in New York—even when they never leave their homes. New York collects the income tax. Connecticut gets nothing.

The estimated 80,000 Connecticut workers caught in this situation aren't just losing their tax dollars to another state — they're paying more than they would here at home. New York's top income tax rate is 10.9 percent. Connecticut's top rate is 6.99 percent. Connecticut workers subject to New York's rule are being taxed at a significantly higher rate on income they earned without setting foot in the Empire State.

Worse, these residents risk being taxed twice on the same income—once by New York under its convenience rule, and again by Connecticut. Connecticut addressed that concern in 2019 by creating a tax credit to offset some of that double taxation, but a credit is not a solution. It is a workaround that leaves New York's hand in Connecticut's pocket and does nothing to bring that revenue home.

Even New Jersey—which also applies a convenience rule—has moved further than Connecticut to push back. In 2023, New Jersey enacted a refundable income tax credit specifically designed to encourage its residents to challenge other states' convenience rules in tax court. Connecticut has taken no comparable step to fight for its taxpayers.

This isn't a new concern for House Republicans. In 2025, as they advanced an alternative state budget proposal, Republicans identified the convenience rule as a standalone structural reform—one with the potential to drive goals ranging from expanding the property tax credit to creating a child tax deduction. That proposal also included funding to help Connecticut residents who wanted to challenge the rule in court, since the state itself cannot initiate such a lawsuit. Democrats ignored it then. They're still ignoring it now.

Repealing Connecticut's own version of the rule and asserting its right to tax income earned here could return more than $340 million annually to Connecticut, according to the nonpartisan Office of Fiscal Analysis. House Republicans say that money could go directly to Connecticut residents—permanently expanding the state property tax credit for homeowners, or bolstering school funding so towns aren't forced to raise taxes.

“For many Trumbull homeowners, property taxes are one of the biggest bills they face every year. Our proposal puts real relief directly into the pockets of Connecticut families by expanding the property tax credit and making sure the people who pay these taxes finally see meaningful help,” said Rep. Rutigliano.

House Republicans have introduced legislation this session to deliver permanent property tax relief directly to Connecticut families. The proposal would more than double the state property tax credit—raising the maximum from $300 to $650—while broadening income eligibility to reach more than 800,000 filers across Connecticut. Combined with the structural revenue that could be reclaimed from New York, House Republicans say the path to sustainable relief is clear.

Last session, legislators passed a bill (PA 25-172) directing Attorney General William Tong to examine the issue and develop legal strategies to defend Connecticut residents and taxpayers. But while Tong, Governor Lamont, and General Assembly Democrats have made a cottage industry of filing lawsuits and holding press conferences over federal funding disputes, they have had remarkably little to say about New York doing the same thing. Connecticut workers are losing money to Albany every single day, and the two most prominent Democrats in state government have barely lifted a finger.

Adding insult to injury, New York Governor Kathy Hochul has been publicly courting former New Yorkers who fled to Florida, urging them to return because she wants their tax revenue back. But she hasn't said a word to Connecticut residents who left New York. She doesn't need to. Thanks to the convenience rule, she's still collecting taxes on many of them.

The tax grab isn't the only front where New York is winning at Connecticut's expense. Cross-border bottle deposit fraud—encouraged by the gap between New York's 5-cent deposit and Connecticut's 10-cent deposit—is costing Connecticut beverage distributors millions. New York's blockade of natural gas pipeline infrastructure, meanwhile, continues to deny Connecticut ratepayers a shot at affordability. Taken together, House Republicans say the pattern is clear.