Murphy, Meriden Residents Back Federal Bill to Alleviate Burden of Property Taxes

Press Release

Today, Congressman Chris Murphy (CT-5) and Meriden residents touted a tax cut passed by the House of Representatives last week aimed at reducing the burden of property taxes. According to the Congressional Research Service (CRS), the median property taxes paid in Connecticut in 2005 (the most recent data available) were $3,865, making Connecticut one of the states with the highest property tax burdens.

"Everywhere I go in the Fifth District, I hear about the burden of property taxes. That's why I supported this legislation to provide some much needed relief to homeowners on their federal taxes," said Murphy.

Last week, the House passed HR 6049, the Renewable Energy and Job Creation Act of 2008, a bill which includes a provision to allow taxpayers who take the standard deduction on their federal income taxes to take an additional standard deduction of up to $350 ($700 for joint filers) for State and local real property taxes. Under current law, individuals who itemize their deductions can deduct both real estate property taxes and personal property taxes. For those tax filers who don't itemize, they are eligible to take the standard deduction. HR 6049 will allow taxpayers who don't itemize to also benefit from a tax cut from their real estate property taxes.

According to CRS, there are approximately 220,000 homeowners in Connecticut that paid some form of property taxes in 2005 but either elected not to take the deduction on their Schedule A or did not itemize their deductions and so were not eligible to take the property tax deduction.

As property taxes, along with rising gas, food, and education costs, are straining families' budgets, Murphy strongly encouraged the passage of this bill to provide a tax break to homeowners in Connecticut.

"After years of giving tax breaks to oil companies and millionaires, Congress is finally getting it right. I went to Washington to cut taxes for middle class families, not big corporations. This tax cut for property taxpayers is the right kind of tax cut - one that will help Connecticut families cope with a tightening economy," said Murphy.

Murphy was joined by John Scalise, a Meriden resident who will benefit from this tax cut, and Robert A. Gollnick, a CPA in Meriden.

Source