May 14, 2016

New Britain Legislators Pass Budget With No Tax Increases

Budget cuts spending but increases funding for New Britain over the previous fiscal year

The state budget secured final legislative passage this week, with support from Representative Peter Tercyak, Representative Rick Lopes, Representative Robert Sanchez and Representative Betty Boukus. Senator Terry Gerratana supported the budget in the Senate on Thursday.

“Despite tough fiscal times, we stood up for our city, passing a budget that makes deep cuts to government spending but increases funding to New Britain,” said Senator Gerratana. “We secured nearly $700,000 in additional municipal aid for the city and a car tax cut that will save businesses and residents more than $4.5 million at no cost to the city. This budget makes significant structural changes, cutting spending and consolidating government while still maintaining Connecticut’s priorities and supporting the people of New Britain.”

Over the past year, Democrats in the General Assembly have cut $1.5 billion from the state budget. The budget passed this week makes long-term spending cuts to state spending and government payroll, and institutes fiscal reforms without raising taxes. This budget closes the deficit while also increasing municipal funding by nearly $50 million.

New Britain will receive $692,320 more in municipal aid than it did in Fiscal Year ’16. In total, New Britain is receiving $101,4111,421 from this budget. In addition, the state budget caps municipal car tax rates at 37 mills, down from New Britain’s current tax rate of 49 mills. This decrease will be visible on car local tax bills this summer, providing businesses and residents with a direct car tax cut of $4,450,144. Next year the car tax cap will drop to 32 mills, and New Britain residents will be paying 35 percent less than they are today. 

New Britain Motor Vehicle Taxes
For a car assessed at $18,000

  FY 15 FY 17 FY 18 and after
Mill Rate 49 37 32
Total Tax Owed $882.00 $666.00 $576.00
Savings N/A $216.00 $306.00