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January 17, 2007
Sen. Freedman Favors Study Regarding Possibly Abolishing Existing Property Tax System
Senator Freedman Believes Municipalities May Prefer To Develop Alternative Tax Systems

Senator Judith G. Freedman (R-26) today joined other Republican Senators in calling on two legislative committees to study the feasibility of adopting enabling legislation that would allow municipalities to eliminate the existing property tax system in favor creating their own alternative methods for raising the money they need to run their local governments.

“I hear from constituents that property taxes are killing them and that the General Assembly must provide property tax relief. After twenty years in the legislature I have come to the conclusion that there is no single method of property tax relief that will satisfy the needs of every community. We need to think out of the box,” said Senator Freedman.

The Republican Senators are asking the General Assembly’s Finance, Revenue & Bonding Committee, which oversees taxation, and its Planning & Development Committee, which oversees matters relating to local government issues, to propose legislation calling for the feasibility study.

Senator Freedman said she believes the first step in helping municipalities resolve their issues with the existing property tax system is to have the General Assembly take a close look at whether it makes sense to permit municipalities to design their own revenue raising systems.

“There is no question that local governments must be able to raise the revenues they need to run their towns. For a very long time now, the method of raising money has been the property tax system. It could be that levying property taxes is no longer the answer. It is time for the General Assembly to consider that possibility and empower municipalities to design local tax programs that better serve the needs of their communities. It is a discussion we should have with municipal leaders and members of the General Assembly. It is time look at new ideas,” said Senator Freedman.