(CBS Connecticut) — State lawmakers today revealed that their bipartisan budget deal includes the elimination of the car tax.
House Minority Leader Themis Klarides was asked how cities and towns would make up hundreds of millions of dollars in lost revenue.
“It is a lot of money, and towns and cities are going to have to make serious decisions as we have made on the state level,” Klarides said. “Towns and cities manage their budgets way better than state government ever could.”
The car tax would be eliminated in the second year of the 2-year state budget.
Democratic House Speaker Joe Aresimowicz says the state would help cities and towns replace the hundreds of millions of dollars in lost revenue. Aresimowicz says the form of that assistance has yet to be determined.
“You are being taxed one way or another, whether it is on your motor vehicle, or the property tax,” Areseimowicz said. “We are going to be looking through the finance committee for many options for taxation of motor vehicles, but we believe that not taxing motor vehicles is a good policy.”
Lawmakers also revealed that parts of their budget deal could require changes to the state constitution.
They want to enact a cap on the amount of revenue the state could collect, a cap on the amount of money the state could collect through bonding, and add new provisions to the existing state spending cap.
The parts of the budget deal that would change the constitution wold require approval by a supermajority of state lawmakers.