Connecticut Citizens Assembly Proposes Tolls and Wealth Taxes to Fix Broken Property Tax System
A 98-member Connecticut citizens assembly has released a report recommending interstate highway tolls and a surcharge on high incomes to fund property tax relief. The proposals aim to repeal local motor vehicle taxes and shift special education costs to the state, though they face significant legal and political hurdles.
Key points
- The assembly, formed by the Connecticut Conference of Municipalities and researchers from Yale and the University of Connecticut, consists of 98 randomly selected citizens representing the state's adult population.
- The group recommends imposing tolls on interstate highways to generate up to $950 million annually, which would be used to repeal local motor vehicle taxes and keep municipal budgets whole.
- The report suggests a state income tax surcharge on high earners, noting that 76% of the public supports increasing taxes on millionaires and billionaires, despite opposition from both gubernatorial candidates.
- Assembly members recommend shifting the full cost of special education services, currently about two-thirds of the $3.3 billion statewide cost, to the state government.
- The proposals face legal barriers, including a 2018 constitutional amendment that restricts the use of transportation fund revenues, which would require a new amendment process not reaching voters until 2028.
Background
Connecticut's property tax system has been criticized for decades as complex and inequitable, with the lowest 10% of earners losing 40% of their income to state and municipal taxes in 2022. Previous attempts by politicians to reform the system, including tolling proposals by Governor Ned Lamont in 2019, failed to gain legislative support. The citizens assembly was created as an alternative to traditional political processes, drawing inspiration from ancient Greek lotteries to select participants.
How outlets are covering it
NPR framed the assembly as a modern experiment in democratic problem-solving, highlighting the personal transformation of participants and the willingness of a politician to take the proposals to the legislature. CT Mirror emphasized the political and legal hurdles facing the proposals, noting opposition from both Democratic and Republican leaders and the complexity of navigating constitutional restrictions on transportation funds. While NPR focused on the procedural innovation, CT Mirror detailed the specific fiscal impacts and the likelihood of legislative rejection.
Why it matters
The assembly's recommendations could reshape Connecticut's fiscal landscape by addressing long-standing inequities in property taxation and local funding. If implemented, the proposals would significantly alter how the state funds education and infrastructure, potentially reducing the burden on residents and businesses while challenging existing political and legal frameworks.
What to watch
The proposals must now navigate the state legislature, where they face opposition from both gubernatorial candidates and significant legal barriers. Any changes to transportation fund usage would require a constitutional amendment process, with voters not likely to see such changes until 2028. Municipal leaders are expected to weigh in on whether the recommendations align with their priorities.
- Politicians are afraid to fix taxes. So 100 citizens tried. : Planet Money NPR
- Citizens’ group wants tolls, tax on rich to finance property tax relief CT Mirror
- Connecticut Citizens’ Assembly proposes highway tolls, wealth tax WTNH.com
- Report: Tolls, regionalization, mandate relief could help lower property taxes NBC Connecticut
- Tolls, regional schools, tax on rich, fewer mandates. 100 CT citizens plan for property tax reform: Dan Haar CT Insider
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