Connecticut House Bill HB05708

Connecticut 2021 Regular Session

• Introduced: 1/27/21
• Refer: 1/27/21

Caption

An Act Concerning Municipal Permitting And Delinquent Taxes.

Impact

If enacted, the bill would introduce significant changes to local governance around permitting and tax compliance. Municipalities would gain increased discretion in ensuring that property owners and applicants are current on their tax obligations before granting permits necessary for construction and development. The adjustment aims to ensure that taxation is adhered to as a condition for receiving local government services, promoting the financial health of municipalities while ensuring accountability among property owners.

Summary

House Bill 5708 aims to empower municipalities in Connecticut to withhold the issuance of building permits, zoning permits, or certificates of occupancy to applicants or property owners who have outstanding delinquencies on municipal taxes. Specifically, the bill allows a municipality to deny these permits not only to those directly responsible for the delinquent taxes but also to any entities that the delinquent applicant had ownership in during the past seven years. This aligns with the intent to enhance local government authority regarding tax collection and compliance requirements.

Contention

The proposed changes may spark debate among stakeholders regarding the balance between effective tax enforcement and the rights of property owners and developers. Advocates of the bill argue that adhering to tax obligations is a necessary prerequisite for benefiting from municipal services, while opponents may raise concerns about the bill potentially creating barriers to development and property rights. There could be apprehension that such measures might overly penalize applicants for prior owners' delinquencies, particularly in cases of recent property transfers.

Notable_points

One of the notable features of HB 5708 is the provision that exempts any debts discharged through bankruptcy proceedings. This acknowledgment of the financial relief provided by bankruptcy law seeks to protect individuals and entities that are trying to resolve their financial difficulties. Nevertheless, the bill's focus on enhancing municipal authority to manage outstanding taxes could lead to heightened scrutiny about how local governments enforce these new powers in practice.