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Murphy touts bill to ease property tax burden
Jun 10, 02:40 PM
New Britain Herald
June 10, 2008
By SCOTT WHIPPLE, Herald staff
NEW BRITAIN — Plainville resident Cathy Sencio said she and her husband would benefit from a bill alleviating the burden of property taxes.
U.S. Rep. Chris Murphy, D-5th District, came to a city office Monday to talk about HR 6049, passed by the U.S. House of Representatives last week, that includes a provision to ease the pain of property taxes.
Speaking at a press conference in the accounting offices of Mugford and Co. LLC, Murphy touted HR 6049, the Renewable Energy and Job Creation Act of 2008. The bill includes a provision to allow taxpayers who take the standard deduction on their federal income taxes to take an additional standard deduction of up to $350 ($700 for joint filers) for state and local property taxes on real estate. The bill now heads to the U.S. Senate.
“We’re in store for difficult economic times ahead,” Murphy warned.
The median property tax paid in Connecticut in 2005 (the most recent data available) was $3,865, making Connecticut a state with one of the highest property-tax burdens, according to the Congressional Research Service.
“After years of giving tax breaks to oil companies and millionaires, Congress is finally getting it right,” said Murphy. “I went to Washington to cut taxes for middle-class families, not big corporations. This tax cut for property taxpayers is the right kind of tax cut, one that will help Connecticut families cope with a tightening economy. These dollars could be better spent making their budgets work.”
Under current law, only those who itemize their deductions can deduct both real estate-property taxes and personal-property taxes. The change would allow all tax filers including those who don’t itemize, to benefit from a tax cut from their real estate-property taxes.
According to CRS, approximately 220,000 homeowners in Connecticut paid some form of property taxes in 2005, but either elected not to take the deduction on their Schedule A or did not itemize their deductions. So they were not eligible to take the property-tax deduction.
As property taxes, along with rising gas, food, and education costs, are straining families’ budgets, Murphy said he is encouraging passage of this bill to provide a tax break to Connecticut homeowners.
The bill also extends tax credits to businesses producing renewable energy as well as businesses and individuals who purchase renewable energy by installing solar panels.
Murphy was joined by Sencio and Steve Gitberg, a New Britain CPA.
Gitberg said the bill would be an extension of the standard deduction, similar to that which the elderly receive once they turn 65.
“This will greatly help those who own their homes but no longer have a large mortgage-interest deduction,” he said.
“This Sunday I become a senior citizen,” Sencio said. “My husband and I fit this category; we hope the bill becomes law.”
