Connecticut House Bill HB06361

Connecticut 2019 Regular Session

• Introduced: 1/25/19
• Refer: 1/25/19

Caption

An Act Concerning The Sharing Of Certain Property Tax Revenue By Municipalities.

Impact

The bill aims to mitigate the financial losses suffered by municipalities when businesses relocate to seek better financial support. By ensuring that property tax revenue is shared, the bill seeks to maintain stability for the municipalities losing businesses, allowing them to recoup some of the lost revenue. The proposed law could lead to a more collaborative approach among municipalities regarding economic development, promoting a balanced competitive environment where the impact of state incentives on local economies is acknowledged and managed.

Summary

House Bill 6361 proposes a mechanism for sharing property tax revenue among municipalities when a business relocates for financial incentives. Specifically, the bill mandates that if a business moves from one municipality to another within the state to benefit from state-supported financial assistance, property tax payments made to the new municipality must be equally shared with the original municipality from which the business departed. This measure is designed to alleviate the financial burden experienced by municipalities losing businesses due to relocation incentives provided by the state.

Contention

While the bill has the potential to benefit municipalities losing business revenue, there may be points of contention regarding its implementation. Critics might argue that this could discourage businesses from seeking beneficial state assistance, as the tax implications could make relocation less attractive. Additionally, determining the logistics of equitable revenue sharing could present administrative challenges that municipalities may need to navigate. The bill also raises concerns regarding how the proposed changes would affect state economic development strategies and whether they might inadvertently inhibit growth in particular areas.