PILOT dollars to New Haven
Last week I signed on as a cosponsor of SB 170, AN ACT CONCERNING A THREE-TIERED GRANTS IN LIEU OF TAXES PROGRAM.
The proposal, developed by Senator Martin Looney, is an elegant remedy to an ongoing unfairness in our property tax burden.
Connecticut towns rely heavily on property taxes, but unlike most states, we lack county-wide financing structures to share the financing of essential services. Colleges, hospitals, and state properties benefit all in a region or the state, but the revenue loss is borne locally by a town.
Senator Looney’s proposal redistributes PILOT dollars (payment in lieu of taxes) based on a municipality's equalized net grand list per capita. PILOT dollars are currently paid out to the town regardless of the wealth of the town, and Senator Looney’s proposal would change that.
The PILOT program was proposed by New Haven in the 1970’s, and has grown as lawmakers added other uses and facilities to the program.
SB 170 offers the potential for giving relief to homeowners and removing a barrier to economic growth in New Haven and other cities. Like most budget bills, it will, if successful, be rolled in to the overall budget rather than be voted separately. It represents a step forward in the relationship between the state and its urban centers.