Gov. Dannel Malloy Thursday expressed support for a local tax option for municipalities as a way to combat escalating property taxes.
Malloy wouldn’t directly specify which local tax options could be on the table, but he hinted that a hotel and/or entertainment tax should be looked at.
 “I think one of the reasons we are more dependent on property taxes than just about any other state is that we have taken away every other option from local communities,” said Malloy, who made the remarks during a press conference Thursday, his first full day in office.
Malloy said the local tax option would be one of the primary non-budget issues that he would support and work with lawmakers on.
Local cities and towns have been pushing for years for more power to raise revenue through other avenues besides property taxes, as budget pressures have impacted their ability to pay for services.
Some business groups, including the hotel lobby and republican lawmakers opposed the idea.
During the press conference, Malloy also expressed hesitancy about borrowing money to close the projected $3.5 billion budget deficit, saying he doesn’t think it’s a good idea to issue bonds to cover operating expenses.
He would not rule out, however, borrowing money for capital expenditures that invest in the state.
