Connecticut House Bill HB05197

Connecticut 2014 Regular Session

• Introduced: 2/18/14
• Refer: 2/18/14

Caption

An Act Concerning Additional Sources Of Revenue For Municipalities.

Impact

If enacted, HB 05197 would significantly impact the financial framework within which municipalities operate. By introducing new revenue streams, cities and towns would be better equipped to fund local services such as education, public safety, and infrastructure projects. The restoration of the Municipal Revenue Sharing Account is particularly crucial as many municipalities have faced financial constraints in recent years. This bill seeks to alleviate some of those pressures by ensuring that local governments receive consistent and reliable funding.

Summary

House Bill 05197 is designed to create additional revenue sources for municipalities by amending existing statutes. The bill proposes restoring funding to the Municipal Revenue Sharing Account, which has historically provided financial support to local governments for various initiatives. In addition, it introduces two new tax structures: a restaurant and food and beverage tax, as well as a hotel tax. The bill aims to enhance the financial stability of municipalities, allowing them to better serve their constituents and meet budgetary demands.

Contention

While the bill has garnered support from various municipal leaders who argue that it would provide much-needed financial relief, there are opposing viewpoints regarding the implementation of new taxes. Critics argue that imposing additional taxes on restaurants and hotels could have adverse effects on local businesses, especially in a recovering economy. Furthermore, there are concerns about the potential burden these taxes may place on residents and visitors alike, which could deter spending in the local economy. The balance between generating necessary revenues and fostering a healthy business environment is a central point of contention surrounding this bill.