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See Malloy’s Proposed Tax Changes for 2017 Here

February 9, 2017 By Staff
See Malloy’s Proposed Tax Changes for 2017 Here

Would you pay more under the new budget from Gov. Dan Malloy (D-Conn.)? Find out with our breakdown here.

On Wednesday, Gov. Dan Malloy (D-Conn.) presented a number of new tax changes that will impact Connecticut residents and businesses. A summary of the major changes here:

Eliminating the $200 property tax credit: $105 million in 2017-18

  • Reclaim Connecticut covered the elimination of this popular tax credit, which around one in four Connecticut residents receive, earlier on Wednesday. If you make less than $75,000 a year and own a home, there’s a chance you received that $200 credit and will miss it this year.

Cigarette taxes: $59.8 million in 2017-18

  • Malloy’s budget calls for a $0.45/pack tax increase on cigarettes, a $2/ounce increase on snuff, and other changes totaling nearly $60 million in tax hikes

Lowering the Earned Income Tax Credit (EITC): $25 million in 2017-18

  • This tax credit mostly benefits low-income earners. If you have two children, for example, your income must be less than $44,648 to qualify. Currently, Connecticut provides a benefit at 27.5 percent of the federal level. Malloy wants to reduce that credit to 25 percent of the federal level.

Hikes on license and permit fees: $18.7 million in 2017-18

  • Malloy proposed fee hikes for gun permits (from $140 to $370 for the initial permit and from $70 to $300 for renewal every five years) totalling $9 million
  • Malloy also proposed fee hikes for land recording, cremation, licensure of urgent care centers, and criminal history record checks

Together, these four big-ticket items raise $208.5 million in new tax and fee revenue for the state, or nearly two-thirds of Malloy’s proposed changes.

The other third comes from a variety of sources that have a lower impact on residents and businesses, including expected increases in federal grants ($35 million), and cutting deals with tax delinquents to get them to pay back taxes ($15 million personal income, $15 million corporate).

Malloy also proposed a few tax cuts that benefit residents and businesses: 1) easing up on the estate tax (commonly known as the “death tax”), and 2) lowering the insurance premium tax from 1.75 percent to 1.50 percent.