An Act Concerning Taxation Of Land Owned By Nonprofit Hospitals And Private Universities.
If enacted, HB 05621 would have a notable effect on local government revenues, particularly in towns that host nonprofit hospitals or private universities. This legislation could lead to increased funding for public services and infrastructure, as the newly generated tax revenue from these institutions may alleviate some financial pressures on municipalities. Supporters of the bill argue that it will create a more equitable taxation system where all landowners contribute to local economies, regardless of their nonprofit status.
House Bill 05621 proposes a significant change to the taxation of properties owned by nonprofit hospitals and private universities. Specifically, it seeks to amend Title 12 of the Connecticut General Statutes to mandate that these entities pay property taxes based on 100% of the assessed value of their land. The bill is positioned as a measure to ensure that nonprofits, which often benefit from tax exemptions, contribute fairly to the communities they serve through property taxes.
The bill may face opposition from various stakeholders, including the nonprofit sector and educational institutions. Critics argue that imposing property taxes on nonprofit hospitals and universities could undermine their ability to provide community services and educational opportunities. They contend that these entities already contribute to economic development and public welfare in alternative ways, and that additional taxes could hinder their operations or lead to cuts in services. The debate surrounding the bill highlights the ongoing tensions between taxation and the mission of nonprofits to serve the public good.