State Cuts Tax Exemption

For The Disabled

By Jan Howard

About 60 individuals in Newtown would be affected by the state’s decision to cut the reimbursement to the town for the $1,000 property tax exemption for the permanently disabled.

First Selectman Herb Rosenthal advised the Board of Finance and the Legislative Council recently that Section 40 of Public Act 03-6 suspended the state-reimbursed property tax exemption for the October 1, 2003, grand list.

He said the town is not able under current law to provide the $1,000 property tax exemption, or $60,000 for the 60 individuals, and forego the state’s reimbursement for the resultant tax loss because legislation allowing the town to do so does not exist.

“We have no legal right to absorb this,” Mr Rosenthal said. “We will have to bill them for the amount that is owed.” The amount would be included in regular tax bills going out in January, he said, adding he said he intends to write a letter to those affected, advising them of the elimination of funding for the exemption.

According to information from the Connecticut Association of Assessing Officers, Inc, towns could provide the exemption for the October 1, 2003, grand list only if legislation allowing them to do so is enacted. The association noted it is considering proposing such legislation in the 2004 session of the General Assembly.

“It’s a strange place to save money,” Mr Rosenthal said, noting the amount of taxes covered by the exemption is very small, amounting to approximately $23.40 for each individual or a total of $1,404.

Mr Rosenthal told the Board of Finance recently that the state is projecting a deficit of anywhere from $2 to $4 million or up to $40 million, which he noted is not a significant percentage in the state’s overall budget. He said, “Hopefully the state won’t take money away from us.”

He said the state has said the towns have to do a better job of cutting their budgets. At the same time, he said, the state cuts municipalities and individuals who are less fortunate, pointing to the state’s elimination of the reimbursement for the exemption for totally disabled persons.

There are two Connecticuts, he said, “the never-never land they [state government] live in and the real world we live in.”

 Mr Rosenthal said perhaps the economic outlook would be better in the spring.