With the 2020 legislative session officially underway, state lawmakers will need to tackle Connecticut’s fiscal and economic challenges.
But some legislators are also struggling to get their own fiscal house in order.
Seven members of the General Assembly are among tens of thousands of individuals and businesses who were at least 90 days delinquent in paying their state taxes through Jan. 4, a Hartford Business Journal computer analysis of tax records has found.
Lawmakers on the delinquency list include a chief deputy majority leader, chief majority whip, and assistant majority leader. Several legislators who owe taxes said they are aware of their debts and are on a payment plan with the Department of Revenue Services (DRS) due to financial hardships. Other lawmakers said they were unaware they were on the delinquency list and repaid their taxes, or said they would, after being contacted by HBJ.
State lawmakers listed on the delinquent taxpayer rolls owed a collective $37,227.40, which is more than a legislator’s annual base salary.
That debt represents a tiny fraction of the $680 million in overdue taxes the state tallied at the end of 2019, the majority of which was 90 days delinquent or more, according to DRS.
Approximately 46% of those back taxes are owed by individuals, while 54% are owed by businesses, DRS said.
The Hartford Business Journal obtained a database containing the names of individuals and businesses delinquent in paying their taxes by 90 days or more. The database contains around 354,486 separate entries; some names and companies were listed multiple times because they have more than one tax liability, according to DRS.
HBJ identified lawmakers by matching the DRS database to a list containing the names and addresses of all 187 state senators and representatives. HBJ’s computer analysis concentrated on those elected officials as well as members of the executive branch. No executive branch leaders were found on the delinquency list, according to HBJ’s analysis.
The debtors
Among the delinquent taxpayers is state Rep. Andre Baker Jr., a Democrat from Bridgeport who owes $30,586.18.
Baker, who sits on the Appropriations Committee, said he is aware of the debt and is on a payment plan to get caught up on his liabilities. He said the delinquency stems from his ownership of two funeral homes in Bridgeport and Norwalk. He’s the sole proprietor of both, which means he reports profits as personal income.
A few years ago, he said he closed for renovations his Norwalk funeral home for more than a year, which caused him to lose out on certain deductions — like depreciation — that he depended on in the past, leading to higher-than-expected tax bills.
“It kind of clobbered me,” he said. Baker said he paid $18,000 in taxes last year and hopes to pay the rest off by the end of this year.
“I’ve done some accelerated payments,” he said. “That’s the beauty of it all. You owe but they are willing to work with you and I’ve been paying consistently.”
Other lawmakers who owed taxes as of Jan. 4, and said they were on payment plans included Rep. John K. Hampton (D-Simsbury) and Rep. Liz Linehan (D-Cheshire).
Hampton, an assistant majority leader who owes $3,170.80 in taxes, said he lost his job a few years ago working at the nonprofit Brain Injury Alliance of Connecticut, which caused financial hardship. In addition to his lawmaker job, he said he is currently doing consulting work and substitute teaching and hopes to have his debts paid off over the next six months.
“Sorry to have fallen behind but losing a job is tough for people,” he said. “I’m no different from other people. I take the responsibility seriously just like every other taxpayer.”
Linehan said she and her husband are about to complete the final installment on their one-year payment plan, which as of early January had a remaining balance of $142.31.
She said she’s glad payment plans are available to taxpayers, particularly a middle-class family like hers.
“I’m a legislator that is very aware of the squeeze on the middle class,” she said. “I’m one of those people who is constantly squeezed.”
“We have three young mouths to feed and the payment plan is very helpful,” she added.
Linehan said she thinks DRS should not identify individuals as delinquent taxpayers if they are adhering to a payment plan because it may hurt their job or other economic prospects.
She said she has written a letter to the Finance Committee urging a tweak to state law that she believes is not honoring the intent and spirit of the payment program.
“Ultimately, I think it’s important that anything we do in this state be represented truthfully in our records,” she said.
There are currently 13,390 active payment plans in process, according to DRS.
Largely any delinquent taxpayer can qualify for a payment plan, unless they have ongoing litigation or a criminal case with DRS. If an individual has a debt under $10,000 and can pay it off within a year, they can apply online for a payment plan. Larger debts require delinquent taxpayers to talk to a collection agent to work out a plan.
“Our goal is not to create terms of a payment plan individuals can’t keep,” said acting DRS Commissioner John Biello. “It doesn’t do us any good to make the terms so stringent and the payment so great that it’s gonna be broken. We’re keeping the interest of both parties in mind.”
If a payment agreement is breached, DRS could create a new plan for the taxpayer or take harsher action.
“There comes a time we have to elevate the action to a higher consequence such as a bank warrant or a wage garnishment or things of that nature,” Biello said.
Repayment plans differ from amnesty programs, which have been adopted by state lawmakers in recent years as a way to raise money to help balance the budget.
The last one was the Fresh Start program, which kicked off in 2017 and ran through Nov. 2018, raising $93 million, Biello said.
Other delinquent taxpayers
Several lawmakers contacted by HBJ said they were unaware of their debts and paid them almost instantly. They include:
• Sen. Gary Winfield (D-New Haven), a chief deputy majority leader who owed $1,895.97. He provided a bank statement showing he paid the debt.
• Rep. Christopher Rosario (D-Bridgeport), a chief majority whip who owed $363.02. Rosario’s press aide said on Jan. 24 that Rosario would take care of the matter right away, but sent no immediate evidence of having done so. [Update: On Monday, after this story published, Rosario provided a payment receipt to HBJ showing he had paid off his full overdue balance to DRS on Feb. 10.]
Meanwhile, State Rep. David Michel (D-Stamford) owed $431.39 as of Jan. 4, but he paid that debt off on Jan. 12, before being contacted by HBJ. DRS officials confirmed, with Michel’s permission, that to be the case.
Michel said he spends a lot of time on the road between Stamford and Hartford, and can sometimes fall behind on reading his mail.
“There’s no other reason for me not to pay my taxes,” Michel said. “Especially being an elected official, it’s not something I want on my record.”
A spokesman for Rep. Noreen Kokoruda, a Republican from Madison, said she was unaware of her $620.65 debt and will repay it. Kokoruda is facing other financial challenges as her Madison home is currently in foreclosure, state court records show.
Correction: This story incorrectly said Rep. Stephen G. Harding (R-Brookfield), owes $17.09. He does not owe any state taxes.
