Connecticut House Bill HB05186

Connecticut 2011 Regular Session

• Introduced: 1/11/11
• Refer: 1/11/11

Caption

An Act Increasing The Hotel Tax To Raise Revenue For Towns.

Impact

The bill seeks to create a significant new source of revenue that could support local municipalities in various capacities, from infrastructure projects to community services. Given the fiscal challenges that many towns face, proponents argue that this revenue increase will provide essential funding that can directly benefit localities and their residents. This funding could be crucial, especially for smaller towns that may rely heavily on tourism and hospitality for their local economy.

Summary

House Bill 05186 proposes an increase in the hotel tax by three percent to generate additional revenue for local towns across the state. Specifically, the amendment targets subdivision (1) of section 12-408 of the general statutes. The revenue generated from this increased tax will be allocated in a specific manner: one-third of the collected tax will go directly to the municipality where the hotel is located, while the remaining two-thirds will be divided between all municipalities in the state and the regional councils of governments. This financial restructuring aims to bolster local government support and resources.

Contention

While the bill has potential benefits in terms of generating localized funding, there are notable points of contention. Stakeholders involved in the hospitality industry might view the tax increase as a burden that could deter tourists or drive business to neighboring states with lower taxes. Additionally, local governments may face pushback regarding how the funds are utilized, leading to debates on transparency and allocation of the new revenue sources. Critics may argue that it is unfair to impose additional taxes on hotel guests, particularly during economically challenging times, thereby stirring debate on the balance between taxation and business interests.