Hartford Business Journal

www.HartfordBusiness.com • February 10, 2020 • Hartford Business Journal 5 Lamont walks back biz tax cuts, sets stage for recreational marijuana By Matt Pilon & Greg Bordonaro mpilon@hartfordbusiness.com; gbordonaro@hartfordbusiness.com G ov. Ned Lamont has pitched a revised fiscal year 2021 budget that includes no broad-based tax rate increases, but cancels or slows previously pledged tax cuts that affect Connecticut businesses. Lamont's $22.3 billion, one-year budget and policy plan also seeks to further streamline occupational licensing, le- galize recreational marijuana and online lottery sales, and offer a new incentive program to businesses and a new way to promote the captive insurance industry. The plan would raise revenue by canceling $28 million in previously approved tax relief for Connecticut busi- nesses. That includes nixing a scheduled elimination of the corporate income tax surcharge, which would now remain at 10% indefinitely. That would raise $22.5 million in additional revenue next year for the state, which has imposed a surcharge for 15 of the past 18 years. In addition, Lamont wants to slow the phase-out of the state's capital base tax, which is levied on a company's net worth or capital holdings, rather than on income. Lamont wants to zero out the tax in 2026, two years later than originally planned. That would allow the state to reap an extra $5.7 million in 2021 revenue. The capital base tax phase-out was seen as a win for the bioscience industry, which has argued it is particu- larly impacted by the tax since companies run for long stretches with no income. Joe Brennan, CEO of the Connecticut Business & Indus- try Association, said the more policymakers walk back tax- break promises the less certainty there is for businesses. "If they are going to continue to extend the surcharge it's something we are disappointed in given that we are still try- ing to get back to equilibrium on job growth," Brennan said. The latest budget proposal would grow fiscal 2021 spend- ing in the 2020-21 fiscal year by 3.7% over the current year. Most of the new spending in Lamont's plan would cov- er rising state employee health costs, larger-than-antic- LATEST HEADLINES A third apartment project in town converted the former Connecticut Children's Medical Center school at 170 Ridge Road into 32 rental units, Gillespie said. Affordable units? One thing Wethersfield hasn't seen is new affordable-housing units, which has become a hot- button issue across Connecticut lately as some suburban towns' restrictive housing policies have come under the spotlight. Gillespie said Wethersfield hasn't been approached by any affordable- housing developers over the last two decades "so we have not had that debate here recently." He did say the town's housing authority recently invested in re- pairs and upgrades to several exist- ing affordable-housing properties. "We have over 2,000 housing units in town at a price point that could be considered naturally oc- curring affordable housing," said Gillespie. "Our plan of conserva- tion and development supports the policy of encouraging a di- verse housing stock and helping to address identified local needs for affordable housing." 107 Old Windsor Road, Bloomfield, CT 06002 (860) 242-8586 | Fax (860) 242-8587 www.pdsec.com PDS ENGINEERING & CONSTRUCTION, INC. THINK • PLAN • BUILD Spotlight on: Retail Munson's Factory Shoppe | Bolton, CT Total Project Size: 2,500 SF Another Successful Project by PDS DESIGN BUILDERS • GENERAL CONTRACTORS • CONSTRUCTION MANAGERS PDS completed exterior renovations to this Munson's Factory Shoppe for a new professional exterior appearance. This work included selective demolition, canopy façade, PVC trim covered columns, wood framing and roofing, bead board, water proof parapet, recessed tile for a new sign, LED lighting and two new cricket dormers with shingles. Continued on page 6 >> OPM Secretary Melissa McCaw unveiled Gov. Ned Lamont's revised budget for fiscal year 2021. PHOTO | CONTRIBUTED

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