Common Criticisms of the Property Tax System

Connecticut’s property tax system is central to how local governments fund services, but it also draws some frequent criticisms, especially around fairness and consistency. Below are a few of the most commonly raised concerns:

Heavy Dependence on Property Taxes

Towns and cities in Connecticut rely more on property taxes than in most other states. In many communities, property taxes make up over 80% of all local revenue. Since municipalities cannot levy their own sales or income taxes, this puts a lot of pressure on a single source of funding, which can be challenging during economic downturns or when property values decline.

Uneven Tax Burdens Across Towns

There are wide differences in how much property wealth each town has. As a result, towns with higher-value properties can keep their tax rates lower while still collecting enough revenue. On the other hand, towns with lower property values often need to charge much higher tax rates to fund the same level of services. This leads to concerns that residents in less affluent communities may face higher relative tax burdens than those in wealthier areas.

Inconsistent Motor Vehicle Taxation

Motor vehicle taxes are also a point of frustration for many residents. Even though there is now a statewide cap on how high the tax rate can go, the amount owed on the same car can still vary from town to town. This

Strain on Renters and People on Fixed Incomes

While property taxes are billed to property owners, the costs can trickle down to renters in the form of higher rent. Similarly, seniors and other residents living on fixed incomes may find it difficult to keep up with increasing tax bills, especially in towns where property assessments have gone up significantly.

Resources for Further Reading

• State Portal: CT Property Tax Services

• Pederson Real Estate Law: Understanding CT Property Tax

• Steadily: CT Property Tax Guide for Landlords

• Town of Tolland: Citizen’s Budget Guide (PDF)

• Glastonbury: How the Budget Works

• CCMC Tax Collector Manual: 2020 PDF

• State Portal: Real and Personal Property Tax Exemptions

• CAAO: Assessment Forms