Hartford Mayor Luke Bronin is proposing a property tax break for city restaurants, which have been hit hard by the pandemic.
Bronin has proposed an ordinance that will be considered by the city council tonight. It would allow restaurants to enter into tax abatement agreements with the city. If passed, new restaurants that buy or lease space in Hartford, or are making capital improvements to their eatery, could offset their personal property taxes.
Personal property taxes for businesses include tangible personal property owned or leased by businesses except for motor vehicles and inventory. If passed, restaurants planning to open in Hartford could enter into an agreement with the city that would allow them to abate real property taxes in an amount that would offset the amount owed for personal property.
In an interview Monday morning, Bronin pointed out that taxes on things like kitchen equipment (i.e. ovens and refrigerators) are highest in the early years, before they depreciate in value and are assessed at a lower rate. Allowing new restaurants relief on these taxes would give them more financial breathing room while the business is still finding its footing.
“As we work to stimulate our recovery from the pandemic, we want to do everything we can to encourage new businesses to make investments in Hartford and open up in our city,” Bronin said.
The vote at tonight’s city council meeting comes as restaurants struggle to bounce back from a possibly-resurging pandemic, which already caused a massive downturn in the restaurant industry over the past year-and-a-half.
In November, the Connecticut Restaurant Association reported 600 restaurants in Connecticut had closed since the pandemic hit the U.S. in March of 2020.
