FAIRFIELD COUNTY, Conn. — Gov. Dannel Malloy is telling the state's municipal leaders that middle-class tax relief is a priority with his administration, a statement said.
The governor has written a letter to local officials about his spending plan to eliminate the local property taxes on vehicles valued at less than $28,500 and reinstate the sales tax exemption on clothing costing less than $50, the statement said.
Cities would have the option of implementing the car tax exemption in 2013, before it goes into effect statewide in 2014, the statement said. While residents would see savings, municipalities would because they wouldn’t need to spend money collecting the taxes, the statement said.
The tax exemption on clothing would start in July 2014 on items costing less than $25, and rise to $50 items in July 2015, the statement said.
Cities and towns would receive the same amount of funding from the state, and possibly more, without raising taxes because of $1.8 billion in savings at the state level, the statement said.
“This is a tough budget, built for tough times. Connecticut is making hard decisions and setting priorities in order to live within its means,” Malloy said in the letter. “We’re all public servants, but we’re also citizens and taxpayers; we can hopefully agree that all levels of government must change with the times, find savings and operate efficiently.”