CCM Wants More Taxes

CCM, not the hockey equipment maker but Connecticut Conference of Munipilaties, a, er, special interest group, says, according to the Courant;

CCM wants Gov. M. Jodi Rell and the General Assembly to authorize towns, or regions of the state, to create their own new taxes, most likely a half-percent surcharge on retail sales and a new levy on hotel stays. State law now blocks such local taxation, restricting communities to property taxes — which pay for the bulk of school and municipal spending. Communities also levy fees for beach passes, building permits and the like, but historically, those generate just a tiny revenue stream.

Yep you read that right, they want to raise the state sales tax to 7 percent and have 1/2 go to the municipality it is generated in. Oh can you see the red tag sales by twilight’s last gleaming? It’s bad enough that towns compete for the big box stores as it is, contributing to the sprawl and over development all over Connecticut. But to really kick it up a notch is rather special.

Granted, the State doesn’t do a good job on passing back the bucks to municipalities. But is that any reason to increase taxes? CCM has put together a list of its legislative priorities:

• On a pilot, or trial, basis allow municipalities to levy local-option taxes (e.g., hotel tax, “land value” tax, sales tax, “piggyback” income tax, etc.). Connecticut lags behind the nation: 34 other states allow at least some municipalities more than one other significant revenue source such as sales taxes, income taxes or both. Make permanent the present rates of the municipal real estate conveyance tax;
• Allow municipalities broader authority to, at local option, increase and assess fees for municipal services and fines for violations;
• Continue progress towards increasing the State’s share of K-12 public education to 50%, on average;
  Identify a state revenue source where future growth will allow the State to phase-in state assumption of the fiscal and administrative responsibilities for special education;
• Identify a permanent funding source to restore the Town Aid Road Grant to pre-2003 levels, plus inflation. For example, allowing municipalities to establish and collect a $10 surcharge on registered motor vehicles could raise as much as $30 million if applied statewide;
• Earmark Native American gaming revenues for future property tax relief by dedicating any increase in revenue above expected FY 08-09 levels ($387 million) to fully fund PILOT reimbursements and increase Pequot-Mohegan grants; and
• Use the State’s Rainy Day Fund to prudently maintain or, if circumstances allow, increase State assistance to towns and cities in order to prevent a tax shift from the State to the local level.
• Increase state financial and other incentives for intermunicipal and regional cooperation. For example, encourage the formation of Councils of Government (COGs) in each region and create incentives for consolidation of the regions. Empower them to:
  • share future growth in state sales tax revenue and distribute it on a regional basis. Also, increasing the state sales tax to 7% and sharing half of the increase would spur regional cooperation while also increasing state revenue;
  • levy their own regional taxes (sales, hotel, etc.) and distribute the proceeds for use on regional infrastructure and economic development projects;
  • deliver services and pool health insurance costs on a regional basis;
    negotiate multi-municipal master contracts with municipal employee and teacher unions; and
    make land use decisions on regionally significant projects.
  • Reallocate existing personnel to increase the staff of the State Office of Responsible Growth so that it can meet its potential for providing technical and financial assistance to municipalities and better coordinate the actions of state agencies. This will bring about more efficient government and regions overall; and
  • Establish a broadly representative (state, local, private sector) blue ribbon commission to discuss and develop alternative service-delivery models and cooperative ventures to achieve greater overall governmental efficiency.
  • Immediately establish the capability for the State to undertake tax incidence analyses. This capability, delayed far too long, would allow CT to understand the real impacts on individuals, families, and businesses of federal, state, and local taxes and of proposed tax changes.