Small businesses are fighting through Hamden tax increases

With the Hamden Democratic primary election in the books and the town election only a month and a half away, the economic development of the town is a hot-button issue.

A Mill rate is a statistic used by some towns to measure how much money in taxes residents in the town are paying for real estate and personal property, to which Hamden residents must pay $52.44 for every $1,000 worth of said property owned.

Hamden’s mill rate is the third-highest in the state of Connecticut, behind only the Torrington Lakeridge Tax District (84.51) and Waterbury (60.21).

Hamden is also $324,505,000 in debt, with the biggest portion of that funding pension bonds. $108,850,000, one-third of the town’s debt, is dedicated to paying for pension bonds.

This is among the factors causing Hamden’s town taxes to skyrocket, and it has caused small businesses to suffer. Gino Kastelli, the owner of Tonino’s Pizza on Whitney Avenue, is among Hamden business owners who have had to adjust.

Kastelli has had to increase the prices of the majority of his menu items by about 15% since Hamden’s tax figures began increasing in 2013. A year in which Hamden’s mill rate was 39.93, which is a more typical figure compared to other towns in Connecticut. 

But the presence of Quinnipiac University makes Hamden an entirely different town to deal with than others in the state. Kastelli said that 30-35% of his business comes from Quinnipiac students, leaving Tonino’s a bit shorthanded when school is not in session.

“Lots of businesses depend on the campus in this area,” Kastelli said.

Don’t get me wrong, everybody survives when they’re not here, but it’s not like a money-making thing when they aren’t here.

Kastelli on the economical benefactors of QU students being back

Tonino’s Pizzeria has been a staple restaurant in Hamden since 1987. When local spots like Tonino’s are open that long, they tend to build a crowd of “usuals,” often seeing customers utilizing hours of operation after long work days or social events.

Customers get closer with the owners of the restaurants that they frequent, and since their common ground is the community they live in, they talk about what has been in the news recently. Hamden’s tax spikes have been a topic of much discussion between Kastelli and his patrons.

“Everybody’s crying about it,” Kastelli said. “All my customers are complaining about it. It’s hurting people, the tax increase. It’s crazy.”

Small business owners like Kastelli are the Hamden residents who have the most to lose with the mayoral election on the horizon. Voters are hoping for a positive outcome, but until then, stores like Tonino’s Pizzeria will continue to have to stay competitive by raising prices and hoping their veteran customers stay supportive.