Hamden delegation secures $856,000 in supplemental car tax reimbursement money
April 12, 2018The town of Hamden is set to receive $856,025 in supplemental car tax reimbursement money after the Hamden delegation secured the release of the funds from the state Office of Policy and Management.
The funding announcement comes after state legislators representing Bridgeport, Hamden and Torrington called for the release of the promised motor vehicle tax reimbursements to their municipalities in a letter sent to legislative leaders. The three communities were facing a motor vehicle tax reimbursement shortfall of more than $10 million collectively.
A fundamental principle of the bipartisan budget, Public Act 17-4, that passed last year was that municipalities with car tax rates above 39 mills – the state mandated car tax cap for 2018 – would be reimbursed by the state for the difference between the cap and the higher tax rate.
To help make the municipalities whole, the Office of Policy and Management is releasing $5 million from the stabilization fund dedicated for car tax reimbursements. This money will be disbursed among each municipality.
State Reps. Mike D’Agostino, Josh Elliott and Robyn Porter said this funding will help Hamden balance its current year budget.
“The Hamden, Bridgeport and Torrington delegations worked hard to ensure this critical funding for our respective cities was released. This funding will help alleviate some of the financial burden placed upon Hamden’s taxpayers and will help the town balance its current year spending package,” D’Agostino, Elliott and Porter said. “This funding is critical to the ongoing operation of our town. As an Alliance District, we need to protect our residents from harmful budgetary cuts. This additional state aid will allow Hamden to prioritize investments in our children’s schooling and town programs and services.”
Torrington, Hamden and Bridgeport were denied this funding because each went through property tax revaluations in 2015 or later and saw tax rate increases of more than 4 mills. This was not considered in the motor vehicle tax reimbursement calculation in the budget.