GROW HOMEOWNERSHIP AND SIMPLIFY PROPERTY TAX SYSTEM:

MAYOR PEREZ ASKS TASK FORCE FOR REFORM RECOMMENDATIONS

---NEWS RELEASE---

(September 21, 2007)---Mayor Eddie A. Perez is asking the Property Tax Reform Task Force to recommend incentives to help grow homeownership in Hartford and to also find ways to simplify the tax system for business owners and investors.

Mayor Perez says, “Homeownership is key to Hartford’s growth and prosperity.  It helps reduce crime, builds wealth, and improves the quality of life on each block where owners have a true stake in the community.  Also, I would like to see our property tax system simplified so that those who invest in business in the City don’t bear too large of a burden when they decide to bring more private capital to the City.”

Mayor Perez also says, “Other communities such as Washington D.C., Providence, and New York City have all put in place measures to protect homeowners.  I urge the Task Force to carefully review the best practices from other cities and see how we can adopt them here.”

The Task Force’s first meeting was held last night and Mayor Eddie A. Perez praised the members’ commitment to finding long-term solutions to a complex issue.  Mayor Perez says, “This willingness speaks volumes to your commitment to our great city.”

The Task Force received an in-depth in informational and analytical presentation from the Directors of Management and Budget, Finance, and Assessments.  The Property Tax is the main source of local revenues for all cities and towns.  The General Assembly, through State Statute, sets how towns levy and collect property tax.

Mayor Perez says, “All of Connecticut’s towns and cities face fiscal challenges.  However, here in Hartford, almost half of our property is non-taxable and we have one of the lowest homeownership rates in the country.  We have a structural problem whereby the City is completely built out and there is little room to grow our grand list for property taxes.  Many of the largest new property developments have tax fixing agreements that run for 15 years and will not generate property tax revenue in the near future.”

Mayor Perez goes on to say, “We have done a very good job of keeping spending low by limiting budget growth on average to the rate of inflation over the past six years, while at the same time, growing back our emergency reserve funds which helps us keep the cost of bond issuances low.”

The next Property Tax Reform Task Force meeting will be held on Thursday, September 27, 2007 at 5:30 p.m. in Council Chambers at City Hall.  This meeting will once again be open to the public and will include comments and input from residents and business owners.