In the spring of 2014, the Connecticut legislature created the State Tax Panel to examine the state’s tax policy. It was charged with evaluating its structure and administration with particular focus on efficiency, equity, reliability, economic development and simplicity.
Almost two years later, it has completed its task.
Of particular interest to us here in New Hampshire is what they said about property taxes. Property taxes, they said, were:
- Not equitable
- Detrimental to the state’s economic competitiveness
- Not levied equally among municipalities
They recommended a Tax Shift.
Raise the existing sales tax from 6.35% to 7.35%. This would raise $600 million. Take that money and send it back to the cities and towns to lower property taxes. This would result in a 7% decrease in property taxes across the state.
This is very similar to the NH Tax Shift Plan.
If Connecticut can do it, why can’t we?