Governor Ned Lamont today announced that he has signed into law the fiscal year 2023 budget adjustment bill, which includes more than $600 million in tax cuts – the largest tax reduction in Connecticut’s history.
Tax cuts in the package include suspending Connecticut’s excise tax on gasoline through November 30, 2022; enacting a $250 per-child tax credit for lower and middle-earning families; funding payments for earned income tax credit eligible households; increasing the property tax credit from $200 to $300; and speeding up a plan to eliminate taxes on pensions and annuities. In addition, bus fares on all public buses statewide will continue to be suspended until December.
Notably, it also reduces property taxes on motor vehicles in 75 cities and towns by capping mill rates at 32.46 and reimbursing the municipalities for the lost revenue. For example, if a town has a mill rate of 50, motor vehicle owners will pay a rate of 32.46 and the state will reimburse that town for the remainder.
The legislation is House Bill 5506. It was approved with bipartisan support of legislators.
“This bipartisan budget gives taxpayers their largest tax cut in history, while paying down approximately $3.3 billion in unfunded liabilities, making groundbreaking investments in childcare, crime prevention, environmental protection, and caring for our most vulnerable residents,” Governor Lamont said. “We are transforming Connecticut, making it a place where people and businesses want to grow and set down roots. I want to thank the members of the General Assembly, town leaders, and everyday residents who raised their voices in support of this budget.”
“The passage of this 2023 budget, a budget containing over a half a billion dollars in tax cuts, is the beginning of providing significant tax relief for Connecticut’s working people, middle class, and retirees,” Lt. Governor Susan Bysiewicz said. “When Governor Lamont and I took office in 2019, our state was facing a $3.7 billion budget deficit. We will be making a historic contribution towards paying down our long-term unfunded pension liabilities, while maintaining one of the strongest rainy day funds in the country. I applaud our state legislature for getting these initiatives over the finish line. We still have work to do, and the governor and I will continue our work to provide the best quality of life for our Connecticut community.”
Connecticut’s Transformative Budget: FY 2023 Budget Adjustment Summary Tax Cuts and Paying Down Our Long-Term Liabilities
Investing in Our Children
Cutting Crime
Creating a Sustainable State Employee Workforce
Transportation Investments
Housing Investments
Protecting Our Environment
Taking Care of Our Most Vulnerable Residents
Healthcare Investments
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