Connecticut House Bill HB05151

Connecticut 2010 Regular Session

• Introduced: 2/10/10
• Refer: 2/10/10

Caption

An Act Concerning Grants In Lieu Of Taxes On Land Taken Into Trust For The Mashantucket Pequot Tribal Nation And The Mohegan Tribe.

Impact

This bill seeks to provide a fairer compensation structure for towns that have lost property tax revenue due to land held in trust for these tribal nations. By amending the current statute, proponents argue that municipalities will receive more appropriate financial support, reducing the fiscal burden that such land exemptions have historically placed on local governments. Additionally, the annual valuation of these lands for tax compensation purposes could lead to more reflective financial distributions, aligning with the value of the land as circumstances change.

Summary

House Bill 05151 proposes amendments to the existing tax regulations surrounding land taken into trust for the Mashantucket Pequot Tribal Nation and the Mohegan Tribe. The bill aims to adjust the eligibility criteria for state grants in lieu of taxes for lands that are exempt from local property taxes. Specifically, it suggests changing the date from which the land must have been taken into trust to an earlier date and further broadening the scope to include land taken into trust for the Mohegan Tribe.

Contention

While the bill has garnered support for encouraging fairness in tax compensation for municipalities, it has also faced scrutiny. Some critics may argue that altering the eligibility date and expanding the tax grants could lead to potential abuses or miscalculations in compensation, creating a precedent that might encourage other entities to request similar arrangements. Furthermore, there are concerns regarding how these changes might affect the relationships between state government and local municipalities, particularly in cases where financial resources are already limited.