An Act Concerning Payments In Lieu Of Taxes To Municipalities For Housing Authorities.
Impact
The bill mandates that the Secretary of the Office of Policy and Management determines the annual grant amount due to each municipality, which is calculated to be seventy-seven percent of the property taxes that would have been owed. This funding mechanism is aimed at enhancing local government capacities to manage affordable housing initiatives effectively. The implementation is slated for October 1, 2020, aligning with guidelines set in the general statutes regarding housing authorities.
Summary
SB00186 is an act concerning payments in lieu of taxes to municipalities for housing authorities. Introduced to provide financial compensation to municipalities where housing authorities operate, the bill ensures that these municipalities receive state grants to offset the loss of property taxes from exempt properties owned by the housing authorities. The bill aims to improve the financial viability of local governments that support housing authorities by granting them a percentage of property taxes equivalent to what would have been collected without the exemptions.
Contention
One notable point of contention arises from the bill's clause that exempts any municipality receiving payments due to existing contracts under other statutes, which could limit the scope of its impact. Critics may argue that the mandated state grants could be insufficient if total funding exceeds the appropriated amounts, leading to potential shortfalls in payments. Furthermore, concern regarding the adequacy of state funding to cover these grants has been raised, highlighting the need for ongoing legislative support to ensure municipalities can sustain their housing obligations.
An Act Concerning The Recommendations Of The Intergovernmental Policy And Planning Division Within The Office Of Policy And Management, Audits And Municipal Finance.
An Act Concerning Motor Vehicle Assessments For Property Taxation, Innovation Banks, The Interest On Certain Tax Underpayments, The Assessment On Insurers, School Building Projects, The South Central Connecticut Regional Water Authority Charter And Certain State Historic Preservation Officer Procedures.