Politics & Government

Elimination Of Tax Program Could Prove Costly To Groton

Cut From Tax Plan Could Mean Loss Of Nearly $2 million

The Town Council got some tough financial news on two fronts Tuesday night, first that the proposed state budget could mean a $2.4 million cut in state funding for the town, and second that the town’s grand list has dropped slightly.

Town Manager Mark Oefinger told councilors that based on the governor’s  proposed budget, the town would see a decline in state revenue, mostly because of the proposed elimination of a tax relief program on machinery and equipment for some businesses.

“The elimination of (the program) is a huge concern,” Oefinger said. “It’s a potential $2 million shortfall.”

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The payment in lieu of taxes program allows businesses, including Pfizer and Electric Boat, not to pay property taxes on certain pieces of equipment.

Instead, the state has traditionally paid municipalities a portion of those taxes. The proposed budget for would cut the payments next year.

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A shortfall of $2 million is equal to about .5 mills on the tax rate.

The town council also learned that Groton’s 2010 grand list fell slightly, by .1 percent from the previous year, and now totals $4.098 billion.  A town’s grand list is the aggregate value of taxable property in the community.

Although some taxing districts showed increases in taxable property, the biggest decline came in Groton City, where the grand list fell 1.3 percent, a drop led by two major employers.

“Pfizer’s net assessment fell about $15.9 million and Electric Boat's fell about $2 million, accounting for almost all of the drop…” said the 2010 grand list report by Assessor John Philip.

Oefinger said State Rep. Ted Moukawsher, D-Groton, and Sen. Andrew Maynard, whose district includes Groton, have contacted the town about the elimination of the tax program and what it means to the community.

 “There is a sense that something’s happening in Hartford that may provide us some relief, ” Oefinger said.

Town Councilors said this is reassuring.

“(Moukawsher) has really worked hard on the town’s behalf,” Councilor Harry Watson said.

The town is also trying to arrange a meeting among councilors and state legislators for March 8.


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