Democrats Propose COVID-19 Tax Relief

New Britain City Council Democrats are proposing that the Council officially approve two COVID-19 tax and water and sewer bill relief programs approved by Gov. Ned Lamont (D-CT).

In his Executive Order 7S, Gov. Lamont provided two programs to provide property tax relief and relief from water and sewer bills for people and businesses harmed by the COVID-19 pandemic.

In his Deferment Program, the Governor allows municipalities to, “offer to eligible taxpayers, businesses, nonprofits, and residents a deferment by ninety (90) days of any taxes on real property, personal property or motor vehicles, or municipal water, sewer,” and other charges.

The other program created by the Governor, a Low Interest Rate Program, provides that, rather than the regular eighteen percent interest, the interest rate on the, “delinquent portion of the principal of any taxes on real property, personal property or motor vehicles, or municipal water, sewer,” and other charges may be reduced to three percent for ninety days.

Lamont said that the tax relief is optional for cities and towns, providing that the legislative body of each municipality must decide for their city or town whether to, “participate in one or both programs.”

The Council Democrats are proposing that the city participate in both.

The Democrats’ resolution would provide that,

the Common Council of the City of New Britain determines to participate in the Deferment Program for taxpayers that attest to significant economic impact by COVID-19 and authorizes Mayor Erin Stewart to notify the Secretary of the Office of Policy and Management and to implement the Deferment Program.

The resolution proposed by the Council Democrats goes on to say,

that the Common Council of the City of New Britain also determines to participate in the Low Interest Rate Program and authorizes Mayor Erin Stewart to notify the Secretary of the Office of Policy and Management and to implement the Low Interest Rate Program.

Council Republicans have proposed what is apparently an alternative to the Democrats’ resolution, apparently without the Democrats’ provisions actually approving the two tax relief programs for New Britain.

The Republicans’ resolution, saying that the Council, “recognizes that there will be an economic impact to the taxpayers of the city and city operations,” apparently attempts give Republican Mayor Erin Stewart the option to participate in either or both of the two programs.

The Republican resolution would call for the city, “Finance Department, the Assessor’s Office and the Tax Collector,” to give a recommendation to Stewart and would provide that,

the Common Council of the City of New Britain authorizes Mayor Erin Stewart, in consultation with the aforementioned departments, to notify Secretary of the Office of Policy and Management and the Common Council of the participation in one or both of the Deferment Program and the Low Interest Rate Program by no later than April 25, 2020.

However, Gov. Lamont’s executive order explicitly said that the choice of whether or not the city will participate in the tax relief programs is, “by determination of its local legislative body,” which, in New Britain is the City Council.

If the Council delegates the decision to the mayor instead of deciding, themselves, as the Republican alternative appears to propose, it could mean the same as the Council rejecting both tax relief programs.

Both versions of the resolution are on the agenda of the Council meeting tonight, April 8, 2020.