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Report Says Property Tax Cap Won't Make Difference
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Economists at UConn say instituting a cap on property taxes could make no difference at all to the burden on Connecticut residents.

Governor Jodi Rell has again said she wants to see property tax rises in the state limited to three percent, as a way of giving relief to overburdened households.  But a new study, undertaken by the Connecticut Center for Economic Analysis at UConn looked at the 29 states where such a cap is in place.  The study found that variations in property taxes were influenced by population, by median income, by the number of students per teacher in a district and by other fundraising options.  But property tax caps made no difference.  Author Steven Lanza.

"Very often these tax caps have escape clauses built into them.  Communities can vote through a referendum or through a supermajority of a representative body to release the cap for a year or for a certain period of time."

The study concludes that one of the most effective ways of controlling property taxes is to allow municipalities to experiment with other methods of revenue raising, for instance from sales or income taxes.