MAYOR CALLS ON LEGISLATURE TO HELP HARTFORD SMALL BUSINESS OWNERS

---NEWS RELEASE---

(April 23, 2007)--- Mayor Eddie A. Perez has called on members of the Hartford Legislative Delegation to work to fix a flaw in tax relief legislation passed last year by the General Assembly.  It will increase city property taxes on 206 small business properties in the city by 62% on average as of July 1st.  Small businesses that own mixed use properties consisting of a business space and less than four units of housing have seen the value of their property increase significantly due to the increased value of their residential units.  Small business owners in these properties face tax increases of $6,321 on average due to state mandated revaluation alone.  The City of Hartford cannot provide relief to these business owners because state statute determines how properties are to be classified for the purposes of local property tax.

“The passage of last year’s tax relief legislation spared Hartford homeowners and large apartment buildings from the crippling tax burden associated with revaluation in the short term.  However, this legislation has pushed a tremendous burden onto small businesses throughout our neighborhoods that could force some to close.  Though taxes may only go up about 4% in the coming years’ municipal budget, state mandated revaluation would force a larger share of the tax bill on to these local businesses.  I call on the members of the Hartford delegation and the General Assembly to work with the leadership of the House and Senate to fix this problem before July 1^st when tax bills go out.”

Mayor Perez had proposed state legislation last year that would permanently protect owner occupied properties in the city from the harmful impact of revaluation and lift the 15% property surtax on business properties.  The legislature adopted a different proposal that allows for temporary relief for Hartford homeowners and apartment units while increasing the burden on small businesses.