Tolls and millionaire tax could fund $950 million in property tax relief

Residents of Fairfield County and the rest of the state could see changes to their tax bills if a new citizens group gets its way. The Connecticut Citizens’ Assembly on Property Taxes released a report on Monday. The group wants the state to impose tolls on interstate highways. It also wants a surcharge on high earners. These moves would finance billions of dollars in local property tax relief.

The assembly estimates that tolls on interstate highways could generate up to $950 million a year. The group also wants to repeal the municipal motor vehicle levy. Towns and cities collect about $950 million annually from that tax. The assembly says toll receipts should go directly to municipalities. This would keep local budgets whole if the vehicle tax is eliminated. The group estimates that 40% of the toll revenue would come from out-of-state drivers.

Dawris Gomez of Bridgeport presented the plan during an online press conference. He said the solutions were designed by everyday citizens. “It is well known that Connecticut’s property tax system is complex, inequitable and in desperate need of reform,” the assembly wrote in the report. Elliot Weiler, a media executive from Westport, said the toll plan allows non-residents to help pay for the roads they use.

The group also proposed a state income tax surcharge on high incomes. It suggested a hike of at least one percentage point. Carly Tuthill, a new homeowner from Litchfield, said the idea was backed by more than two-thirds of the group. The assembly cited a 2025 tax fairness study. It found that the lowest earning 10% of workers lost 40% of their income to state and municipal tax burdens in 2022. The highest-earning decile lost just 10.6%.

Local budgets also bear the cost of special education. Cities and towns pay about two-thirds of the $3.3 billion statewide cost each year. The assembly recommends the state take on the full cost. This would require a major shift in state fiscal practices. Connecticut has used aggressive budget caps since 2017. This strategy created annual surpluses averaging more than $1.8 billion. Critics say those surpluses have come at the expense of education and municipal aid.

The report also includes smaller proposals. The group wants half of the $110 million collected from a 1% sales tax on prepared meals sent to towns. It also wants 47% of the more than $160 million raised from a 15% hotel tax to go to municipalities. The assembly wants the state to increase its $2.5 billion Education Cost Sharing program annually to match inflation. It also wants a one-year delay before new state mandates take effect.

Governor Ned Lamont and Republican gubernatorial nominee Ryan Fazio both oppose raising income tax rates on the highest earners. They argue it would cause residents to leave the state. A poll commissioned by The Connecticut Project found 76% support increasing taxes on millionaires and billionaires. A spokeswoman for Lamont’s campaign said the governor appreciates the group’s effort. Ryan Fazio said the report shows residents are struggling to afford living in the state.

The 98-member assembly was created last July. It was formed by the Connecticut Conference of Municipalities and researchers from Yale and the University of Connecticut. The group is designed to mirror the state’s adult population. Its recommendations now face a political and legal gauntlet. Any tolling plan would need to navigate federal law and state constitutional constraints.