Connecticut House Bill HB05641

Connecticut 2019 Regular Session

• Introduced: 1/18/19
• Refer: 1/18/19

Caption

An Act Concerning Municipal Participation In The Circuit Breaker Tax Relief Program.

Impact

The passage of HB 5641 could significantly alter the landscape of municipal taxation and grant funding in Connecticut. By enabling municipalities to opt out of the Circuit Breaker Tax Relief Program under financial distress, the bill aims to promote financial sustainability at the municipal level. This measure could allow towns to reallocating fiscal resources in more pressing areas rather than being bound to a program that may not be adequately funded. However, it also opens a dialogue on the broader implications for taxpayers who might rely on these relief measures, especially in the context of increasing local tax pressures.

Summary

House Bill 5641 seeks to amend Title 12 of the Connecticut General Statutes to address the participation of municipalities in the Circuit Breaker Tax Relief Program. Specifically, the bill provides municipalities the option to elect not to participate in this tax relief program after a reduction in reimbursement or a deficiency in funds for related grants. Municipalities opting for this exclusion must notify the affected taxpayers with a one-year written notice prior to opting out of the program. This change is aimed at providing municipalities with more control over their participation in tax relief measures that may become financially unfeasible due to funding cuts.

Contention

Notable points of contention surrounding HB 5641 may include concerns from local residents and government officials about the potential loss of tax relief benefits. Opponents of the bill may argue that the opt-out provision could undermine the state’s efforts to provide consistent tax relief to residents, particularly low-income taxpayers or seniors who benefit from such programs. Proponents, however, would highlight the need for municipalities to retain flexibility in managing their financial obligations, particularly in an environment where state funding is increasingly unpredictable.