🔒Hartford’s property-tax issues similar to other cities

I finished reading a recent edition of the Hartford Business Journal (“Myriad ideas exist to solve Hartford’s high property taxes and unequal tax system,” July 8, 2019) and found myself nodding in complete agreement with many of the solutions presented to solving Hartford’s fiscal issues and high property tax rate.

This dire situation is not unique to the Capital City — as mayor of New Britain for the last six years, I can relate.

There was a time when you could walk into New Britain’s iconic Capitol Lunch and savor the aroma of hundreds of Martin Rosol hotdogs on the grill in anticipation of the workers from nearby factories stopping by for a bite to eat.

Our Main Street was bustling with shoppers and our downtown was still whole, not yet divided by the introduction of Route 72. It was a busy time for New Britain, when we were known as the Hardware Capitol of the World.

With the shift in manufacturing, the dynamics of our city have changed over the last half-century, but we have found unique ways to adapt and provide for our residents. New Britain has a long history of innovation and finding a way to overcome challenges.

Situated in the geographic center of Connecticut, New Britain is home to 73,000 residents, with our median household income at $41,128. Our city is 13.4 square miles and is 98 percent developed.

While we have been home to Fortune 500 company Stanley Black & Decker for 176 years, (yes, tape rulers are still made on Myrtle Street), we are also the home to many nonprofits, social-service agencies, churches, a state college, a courthouse, the Connecticut Public Utilities Regulatory Authority, a branch of the Department of Motor Vehicles, and others exempt from paying taxes.

In all, there are more than 500 properties in New Britain that are tax exempt. In total, the city loses out on $60.9 million in property tax revenue each year. To put this in perspective, this would pay for nearly 50 percent of the board of education’s annual $126 million budget.

While the state does provide Payment in Lieu of Taxes (PILOT) funding to help make up this difference, it is a mere fraction of what we would be receiving if the properties were fully taxed. Even though our grand list has seen growth over the last few years with the addition of new developments, such as Costco, it is simply not enough to keep up with the cost of doing business.

I have been vocal at the Connecticut Conference of Municipalities and Capitol Region Council of Governments that something needs to change. State leaders must make amendments to state law to allow municipalities more flexibility in creating new revenue streams.

Why shouldn’t we be able to offer a service fee to nonprofits who utilize our public services, like our fire and police departments, as well as public works for trash collection?

These services cost the city a lot of money and account for more than $45 million in our budget.

Other changes in state law could cut down on the number of organizations that qualify for a tax exemption, thus releasing a burden.

I run a lean government. I’ve cut everything to the bone and have even tried to collect money from nonprofits by sending out an annual letter asking them for a donation to put towards our general fund. The most we have received is $300, from non-taxpaying entities that call New Britain home.

Something has to give. Our cities will not continue to survive if the state’s unequal tax system does not change.

Erin E. Stewart is the Republican mayor of New Britain.