Eddie A. Perez

Mayor

 

GOOD NEWS FOR HARTFORD’S SMALL BUSINESSES

 

--NEWS RELEASE---

 

(June 8, 2007)--- Mayor Eddie A. Perez wants to thank Hartford’s Court of Common Council for taking swift action today to phase-in revaluation and spare 2,227 commercial properties and lots in the city from significant property tax increases.  The final vote was 6-0-1 with two absent.

Mayor Perez says, “Our small business community plays a vital role in Hartford’s economic revitalization.  The uniqueness of these shops helps provide and sustain the character and diversity of all of our neighborhoods.  By working together, City Council members and I devised a local option to keep these businesses strong.  This plan adopts a phase-in of the new certified revaluation that equals one-fifth of the new assessment in fiscal year 07-08.  Since the State Legislature did not approve a tax relief plan for Hartford small businesses, this phase-in will prevent a large shift in taxes to neighborhood small businesses.  City officials found it imperative to take action that would benefit residents and business owners alike.”

The phase-in law adopted by Council reduces the surcharge on business and caps the residential increases due to revaluation at 3.5%.  The city would adjust the mil rate, to meet state law, in order to generate the same local revenue as computed in the adopted budget.

The impact is as follows:

  1. Every commercial property would have their increase in taxes due to revaluation phased-in over five years.  (Example:  a property with 100% increase would see a 20% increase in 07-08 with additional 20% increases in subsequent years)
  2. Properties with decreases due to revaluation would have the decrease spread out in equal portions over five years
  3. The plan uses existing statues and does not require new legislation by the General Assembly
  4. The city can use the phase-in for one year and report to the legislature ideas from its task force for further reform

The City will now form a property tax task force and recommend long-term solutions for the next legislation session.  However, today’s Council action does not prevent the State Legislature from acting in Special Session to provide a solution that helps more commercial properties for a longer period of time.