Connecticut House Bill HB06324

Connecticut 2013 Regular Session

• Introduced: 1/31/13
• Refer: 1/31/13

Caption

An Act Establishing A Municipal Option To Abate Property Taxes For Small Businesses.

Impact

This bill has the potential to significantly impact state laws surrounding property taxation and local governance. By allowing municipalities to implement tax abatement measures, local governments gain a tool to attract and retain small businesses, which are often viewed as vital contributors to the local economy. Each municipality will establish its own eligibility criteria for tax abatement, providing flexibility tailored to the specific economic circumstances of their communities while promoting business investment at the local level.

Summary

House Bill 06324, titled 'An Act Establishing A Municipal Option To Abate Property Taxes For Small Businesses', introduces a measure that empowers municipalities to offer property tax abatements for small businesses. Under this bill, local governments can abate up to 100% of property taxes due on new or newly acquired personal property owned by small businesses, defined as those employing 50 or fewer full-time employees. This legislative effort aims to spur economic growth by easing the financial burdens on small businesses, especially in their formative years or during expansions.

Contention

Despite its benefits, the bill may face contention among varying stakeholders. Critics could argue that property tax abatements could lead to long-term revenue loss for municipalities, stretching budgets and potentially limiting funding for public services. Furthermore, there may be concerns about how eligibility criteria are established and whether certain businesses should be prioritized over others. Balancing the interests of small businesses with the fiscal health of municipalities will be crucial as the bill moves forward.