Connecticut House Bill HB05875

Connecticut 2013 Regular Session

• Introduced: 1/24/13
• Refer: 1/24/13

Caption

An Act Concerning Allocation Of A Portion Of The Sales Tax To Municipalities.

Impact

The potential impact of HB 05875 on state laws revolves around altering the current distribution model of sales tax revenues, fostering greater financial autonomy for municipalities. This change is expected to support local economies by providing towns with critical funding, empowering them to enhance public services and infrastructure that cater to their growing populations. Proponents argue that this bill will help local governments better manage funds more efficiently while responding to the specific needs and opportunities of their communities.

Summary

House Bill 05875 proposes an amendment to the existing taxation system that mandates retail businesses filing consolidated sales and use tax returns to disaggregate their tax data by town. This bill aims to ensure that a portion of the sales tax revenue is directly allocated back to the municipalities where the tax was collected. By reallocating one-quarter of one percent of the state's six percent sales tax revenue to towns, the bill seeks to provide financial resources to municipalities, especially those identified as regional destination points for retail activity.

Contention

Notably, this bill has sparked some discussion regarding concerns over budget implications for the state as a whole. Critics might raise issues about the feasibility and sustainability of reallocating these percentages out of the state’s overall sales tax revenue, questioning if it might lead to a reduction in available funds for state-level services and programs. Additionally, there may be concerns regarding the administrative burden placed on retail businesses to segregate their sales data by town, which could add complexity to their tax filing processes.