Corporate Tax

Connecticut should maintain the road on earnings, property, and corporate taxes this yr

T.Axes of various kinds had come to the mind of Connecticut MP Stephen Meskers at a recent community and government event hosted by the Greenwich Chamber of Commerce.

The Democratic legislature, whose 150th district primarily encompasses the city’s coastline, expressed its hopes that the state would “keep” income, property and corporate taxes, which it keeps largely low compared to surrounding states.

While Connecticut’s income tax rate is 6.99% higher than Massachusetts’ 5%, it is well below New York’s 8.82%. Nutmeg’s property tax rate of 2.14% is higher than New York’s (1.72%) but less onerous than Massachusetts (2.25%), while corporate income tax is 7.5% compared to that of New York (6.5%) and that of Massachusetts (8%).

Still, Meskers said at the February 25 event that if Connecticut is to grow its commercial real estate market as well as its residential real estate market during the pandemic, it will have to withhold tax increases – at least for 2021. “The pressures in New York State, New York City, Massachusetts and even New Jersey to collect taxes is immense, ”he said. “I think we’re one of the relatively cheaper places” in the region.

The representative, who was elected to his second term in November, believed Connecticut could probably afford to keep taxes where they are given its budget of a $ 1 billion deficit due to federal aid and tax revenue Dollar fluctuated to a surplus of about $ 400,000. Looking ahead, he said he was “fairly satisfied” that the “Rainy Day Fund” could help keep taxes low, at least in the short term.

Meskers is also part of a fight against Connecticut residents who work elsewhere and pay at least a portion of their income tax to the state in which they work. His proposal, HB 6183, co-sponsored by Rep. Lucy Dathan (D-Norwalk and New Canaan), would allow Connecticut residents and one-year-olds to receive credits for taxes paid to other states while they were out during the pandemic of Connecticut worked out.

The legislation is particularly important in the current working atmosphere, said Meskers. Such “employer convenience” rules are unfair when people are out of the office – due to employer indulgence, office closures, or both – and New York takes a “very aggressive stance” to maintain the status quo.

He cited the Connecticut and New Jersey amicus briefs in a complaint New Hampshire filed against Massachusetts in the US Supreme Court last October. Bay State claims income tax can be levied on non-state workers who work in Massachusetts – a position New Hampshire disagrees with.

Should the court rule in New Hampshire’s favor – a decision is not expected until the middle of next year – S&P Global Ratings recently wrote that the result could be “the reallocation of billions of income tax dollars between states. New York and Massachusetts in particular could potentially lose significant income taxes while New Jersey and Connecticut could generate income. “

“What we want to see is (such workers) being taxed once – and in Connecticut, not New York,” Meskers said.

Meanwhile, on March 1, the Connecticut Senate passed Senate Draft 873, which, among other things, allows Connecticut residents who work in other states and pay income tax to them to receive credit for those taxes on their Connecticut tax returns . This bill now goes to Governor Ned Lamont, who is expected to legally sign it.

Meskers added that limiting the intricate control network would further encourage companies to come to Connecticut, including computer data centers that many lawmakers believe will be a boon to local communities’ bottom line. That legislation, House Bill 6514, was passed by the House on February 24th by a margin of 133-13.

“Data centers are the backbone of the digital age,” said Lamont after receiving approval from the house. “With this growing need, we are experiencing a significant phase of national growth in order to build these infrastructures and create the appropriate jobs to support their operations.

“Connecticut needs to come in and bring this industry into our state,” Lamont continued. “This is a unique opportunity to show the technology industry that Connecticut supports this sector and we welcome their development in our state.”

This bill is now also going to the State Senate.

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