Connecticut House Bill HB05827

Connecticut 2011 Regular Session

• Introduced: 1/24/11
• Refer: 1/24/11

Caption

An Act Concerning Tax Increment Financing In Enterprise Corridor Zones.

Impact

If enacted, HB 5827 would significantly impact state laws surrounding municipal financing by broadening the definitions and applicability of tax increment financing. This change would empower municipalities to leverage future tax revenues generated from increased property values in enterprise corridor zones to fund current development and improvement projects. The bill aims to promote financial flexibility for local governments, potentially leading to accelerated economic development in targeted regions that could benefit from such investments.

Summary

House Bill 5827 seeks to amend the general statutes to grant municipalities greater authority to utilize tax increment financing (TIF) for projects located in enterprise corridor zones. The intention behind the bill is to enhance local government's capacity to encourage economic development by facilitating investments in designated areas that may require financial incentives to attract growth. The bill underscores the role of TIF as a tool that municipalities can employ to finance public improvements and infrastructure enhancements that will stimulate private investment and create jobs.

Contention

One of the primary areas of contention surrounding HB 5827 revolves around the balance of power between state and local governments regarding financial autonomy. Critics of the bill may argue that while tax increment financing can foster economic growth, it also poses risks of misallocation of resources or reliance on projections that may not materialize. Moreover, there may be concerns from stakeholder groups about ensuring transparency and accountability in how TIF revenues are utilized within these enterprise corridor zones. Advocates for the bill, on the other hand, emphasize its potential to revitalize underdeveloped areas and stimulate broader economic benefits.