Connecticut House Bill HB05964

Connecticut 2011 Regular Session

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

Caption

An Act Concerning The Use Of Revenues Derived From An Increase In The Hotel Tax.

Impact

The impact of HB05964 on state laws primarily involves amendments to Chapter 219 of the general statutes regarding hotel taxation. By establishing a clear framework for how the additional tax revenue should be distributed, the bill aims to provide direct financial support to municipalities and regional organizations, enabling them to address local needs and projects effectively. This could lead to enhanced public services, infrastructure improvements, or community programs funded by the generated revenue.

Summary

House Bill HB05964 proposes an increase in the hotel tax by three percent in Connecticut. The bill mandates that the revenue generated from this tax increase be allocated in a specific manner: one percent to the municipality where the hotel is located, one percent to the regional council of governments representing that municipality, and the remaining one percent to be deposited in the state's General Fund. This structure is designed to ensure that local communities directly benefit from the tourism revenue generated through hotel stays.

Contention

While the intent of the bill is to promote local benefit from tourism, there may be contention surrounding the efficacy of the tax increase and the appropriate use of the revenue. Stakeholders such as hotel owners and tourism associations might argue against the increased burden on customers, potentially leading to a decrease in hotel bookings. Furthermore, discussions could arise regarding whether the distribution of funds effectively addresses the needs of all communities uniformly, especially in diverse regions with differing economic capacities.