Connecticut Senate Bill SB00491

Connecticut 2018 Regular Session

• Introduced: 3/13/18
• Refer: 3/13/18

Caption

An Act Concerning Municipal Resource Recovery Authorities.

Impact

This bill significantly impacts state laws by limiting the tax liabilities of municipal resource recovery authorities, which could lead to increased investment in local projects without the burden of taxes. The emphasis on payments in lieu of taxes facilitates a negotiated settlement between municipalities and the authorities, potentially leading to greater collaboration and shared benefits. However, it raises questions about the revenue impact on municipalities that could have otherwise benefited from those taxes, thereby shifting the financial landscape of local governance.

Summary

SB00491 is an act concerning municipal resource recovery authorities, which seeks to amend the tax obligations of these authorities. The bill provides significant tax exemptions for municipal resource recovery authorities, assuring that their projects and properties will generally be free from state taxes and assessments. The essence of the bill is to streamline the operational finance of these authorities by allowing them to enter into agreements for payments in lieu of taxes (PILOT) with municipalities, thereby potentially bolstering the financial framework within which these authorities function.

Contention

There may be contention surrounding SB00491 regarding the fairness of tax responsibilities between municipal authorities and local governments. Critics could argue that providing extensive tax exemptions for these authorities could reduce vital revenue streams for municipalities, potentially affecting public services funded by such taxes. Proponents of the bill would argue that the enhanced capabilities of municipal resource recovery authorities would ultimately benefit local communities through improved environmental initiatives and other recovery projects.