Connecticut House Bill HB06032

Connecticut 2019 Regular Session

• Introduced: 1/24/19
• Refer: 1/24/19

Caption

An Act Requiring A Study Of Municipal Retention Of A Portion Of The Revenue Generated By The Sales And Use Taxes On Hotels And Lodging Houses.

Impact

If enacted, this bill could significantly affect the revenue-generating capabilities of municipalities that host hotels and lodging businesses. By allowing them to retain a portion of the occupancy tax, municipalities may experience improved funding for local services, infrastructure, and community development projects. This initiative has the potential to foster stronger local economies, especially in areas where tourism plays a pivotal role. However, it also raises questions about the distribution of tax revenues at the state level and how this change could alter funding dynamics.

Summary

House Bill 06032 mandates a study examining the feasibility of allowing municipalities to retain a portion of the revenue generated from the sales and use taxes on hotels and lodging houses. Introduced by Representative Garibay, the bill aims to assess whether such retention would enhance local financial autonomy and benefit the municipalities directly impacted by the presence of hotels and lodging facilities. The bill emphasizes the need for a comprehensive analysis of the potential economic effects and administrative adjustments necessary for implementation.

Contention

There may be points of contention surrounding the bill, particularly regarding the allocation of tax revenues and the implications for state funding. Critics may argue that such a shift could reduce overall state revenue or create disparities between municipalities based on their lodging industries. Furthermore, discussions may arise concerning the administrative costs associated with implementing and managing such a retention policy. As the study progresses, stakeholder opinions will likely vary significantly, with some advocating for increased local control over tax revenues while others caution against the potential negative repercussions for state funding and budget allocations.