Connecticut Senate Bill SB01131

Connecticut 2015 Regular Session

• Introduced: 4/9/15
• Refer: 4/9/15
• Report Pass: 4/24/15
• Refer: 5/1/15
• Report Pass: 5/7/15
• Engrossed: 6/1/15
• Report Pass: 6/2/15

Caption

An Act Concerning Grand List Growth.

Impact

If implemented, the bill could reshape how property taxes are assessed and collected in municipalities that designate enterprise zones. Specifically, these municipalities can reduce taxes based on improvements that lead to an increase in property value. At least fifty percent of the increase in tax revenue generated by these improvements must be utilized to further reduce property assessments in the area, potentially spurring more growth and development in those zones. The bill is set to take effect on October 1, 2016, applicable to assessment years starting from that date.

Summary

SB01131, titled 'An Act Concerning Grand List Growth', aims to incentivize improvements in commercial and industrial properties within designated enterprise zones. The bill allows municipalities to vote to provide property tax reductions for improvements that increase assessed property values by a certain amount. This reduction is aimed at fostering economic growth and attracting investments by alleviating some of the financial burdens that accompany property enhancement projects.

Sentiment

The general sentiment surrounding SB01131 appears to be supportive among those who see it as a vehicle for economic development. Proponents argue that by lowering tax burdens on businesses, the bill encourages property improvements and investment in local communities. However, there may be concerns among stakeholders about the implications of reduced property tax revenues on municipal budgets and services, particularly in areas that rely heavily on property taxes for funding essential services.

Contention

Notably, discussions surrounding this bill may involve debates on the fairness of offering tax relief to businesses while potentially impacting funding for public services. Critics might argue that this type of relief could create disparities between different areas within the state, favoring regions with enterprise zones over those without. Overall, the bill presents a mix of opportunities for growth while inviting scrutiny regarding its broader effects on local economies and governance.