Conn. House Speaker pushes property tax rebate as gas tax holiday stalls 

As Gov. Ned Lamont admitted his gas tax holiday has stalled, House Democrats shifted their focus to one of Lamont’s original proposals: a one-time tax rebate.  

Lamont (D-Connecticut) acknowledged to reporters Wednesday after an event in New London that his proposal hasn’t gained much momentum since he floated it two weeks ago.  

“I’ve heard they have some other ideas. Let’s sit down and do something quickly so we can help people now,” he said. 

The governor had suggested pausing the state’s 25-cent-per-gallon tax on gas and 49-cent-per-gallon tax on diesel as gas prices rise amid the war in Iran.  

Democrats said they haven’t seen a huge push for the idea.  

“I can’t say that I’ve gotten an email from a constituent saying cut the gas tax,” Rep. Jason Rojas (D-Majority Leader) said.  

Rep. Vincent Candelora (R-Minority Leader) said Lamont should be the one to try to advance the proposal.  

“Going to the podium and throwing out another idea to spend money and then not following through is disappointing,” Candelora said.  

Lamont told reporters Thursday that his main priority remains using $500 million from a budget surplus to provide relief.  

Lamont’s budget proposal called for one-time rebates for more people, including $200 checks for individuals and $400 for married couples.  

Prior to convening a session to vote on judge confirmations and a union contract, Rep. Matt Ritter, (D-Speaker), said his caucus would like to expand on that.  

He suggested turning the $300 property tax credit for people who meet income thresholds into a one-time tax rebate this year.  

“Substantial target tax checks to people, far above the numbers people were talking about in January,” he said, referencing Lamont’s proposal.  

Ritter said the legislature could also get money from Lamont’s $500 million proposal to increase the amount of money in a rebate meant to offset property taxes.  

He acknowledged he’s only had initial conversations with Senate Democrats, who have proposed using that same pot of money for ongoing tax credits.  

“Just stay tuned, give us a couple of days to iron it out, get through the negotiations,” Ritter said. “But we feel pretty good about it.”  

The legislature’s Finance, Revenue, and Bonding Committee has until April 1 to approve its tax plan.  

The idea drew a sharp rebuke from Republicans.  

“Connecticut Democrats think Connecticut residents aren’t smart enough to see through this blatant vote-buying scheme,” Sen. Stephen Harding (R-Minority Leader) said in a statement.  

Lamont has defended his proposed rebate as a one-time use for a one-time surplus, something Ritter echoed Wednesday.  

Harding pointed toward his caucus’s proposal to use the entire $1.6 billion volatility surplus to fund tax cuts. The dollar amount is similar to the tax cut Sen. Ryan Fazio (R-Greenwich) has proposed in his run for governor.  

The $1.6 billion surplus is the result of a cap on how much the state can spend from certain volatile revenue streams, including tax on investment income.  

Senate Republicans have said those tax cuts can be funded in the future with budget cuts, but Democrats have challenged them to present a budget proposal.  

House Republicans, on the other hand, have been critical of using the volatility surplus at all.  

Rep. Vincent Candelora (R-Minority Leader) said the state should keep the fiscal guardrails intact, which would mean using the surplus to pad the Rainy Day Fund and pay down pension debt.  

Candelora raised concerns that revenue projections have been declining, although new forecasts for the upcoming budget year will be released at the end of April after tax revenues are collected.  

“Somebody should be sounding the alarm in this building, yet we continue to see policies or more spending,” Candelora said.  

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