Bill on boat and aircraft tax put on hold

A legislative committee vote on a controversial component of Gov. Dannel P. Malloy’s budget plan that would begin taxing private boats and aircraft as personal property was placed on hold Monday.

State Rep. Patricia Widlitz (D-Branford, Guilford), co-chairwoman of the Finance, Revenue, and Bonding Committee, said discussions continue on that measure and other possible changes to the governor’s package of tax increases.

“We had thought perhaps it would be ready today so we put it on the agenda just in case, but it’s on hold,” Widlitz said after the committee meeting. “But we’re meeting tomorrow, so you never know.”

The bill would allow municipalities to levy property tax on boats and planes at a rate of 20 mills. The tax would be collected in the towns where the owners’ reside.

Benjamin Barnes, the governor’s  budget chief, has testified that the tax is projected to generate nearly $43 million a year for towns and cities.

Connecticut’s boating and aviation industries have strongly opposed the tax measure.

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