The elimination of the state contribution to municipal retirement funds in 2011 has been temporarily restored. This bi-partisan bill provides 7.5% state funding of municipal retirement expenses in Fiscal Year 2023 and permanently reduces the Business Profits Tax for the fifth time in six years became law.
This is merely a start at lowering the skyrocketing property taxes ever since the Bill O’Brien led legislature eliminated the state contribution to municipal retirement benefits in 2011. That move forced town governments to pick up the retirement benefit, and therefore raise your property taxes. The state has a longstanding obligation to financially support our communities and for the last decade we have failed to live up to it.
Our municipalities, and the taxpayers who fund municipal budgets, need continued tax relief and the ability to plan their budgets. The $26.5 million being returned to municipalities in this legislation is one-time only and is mostly paid for by the business profits tax, which I voted to lower this session.