Connecticut 2021 Regular Session

Connecticut House Bill HB06655 Compare Versions

Version 1 (Old)

Version 2 (New)

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7		-	General Assembly Substitute Bill No. 6655
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	13	+	General Assembly Raised Bill No. 6655
8	14		January Session, 2021
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	18	+	Referred to Committee on FINANCE, REVENUE AND
	19	+	BONDING
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	22	+	Introduced by:
	23	+	(FIN)
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12	28		AN ACT CONCERNING MU NICIPAL TAXATION AND INCENTIVIZING
13	29		REGIONALIZATION.
14	30		Be it enacted by the Senate and House of Representatives in General
15	31		Assembly convened:
16	32
17	33		Section 1. (NEW) (Effective July 1, 2022) (a) As used in this section: 1
18	34		(1) "Debt payment" means the payment of principal and interest on 2
19	35		bonds, notes or certificates of indebtedness, excluding revenue bonds, 3
20	36		issued by a municipality; 4
21	37		(2) "Legislative body" means (A) the board of selectmen in a town that 5
22	38		does not have a charter, special act or home rule ordinance relating to 6
23	39		its government, (B) the council, board of aldermen, representative town 7
24	40		meeting, board of selectmen or other elected legislative body described 8
25		-	in a charter, special act or home rule ordinance relating to government 9
	41	+	in a charter, special act or home rule ordinance relating to government 9 Raised Bill No. 6655
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26	47		in a city, consolidated town and city, consolidated town and borough or 10
27	48		a town having a charter, special act, consolidation ordinance or home 11
28	49		rule ordinance relating to its government, (C) the board of burgesses or 12
29	50		other elected legislative body in a borough, or (D) the district committee 13
30	51		or other elected legislative body in a district or other municipal 14
31	52		corporation; 15
32	53		(3) "Municipality" means any town, city, borough, consolidated town 16
33	54		and city, consolidated town and borough, district as defined in section 17
34		-	7-324 of the general statutes and any other municipal corporation 18 Substitute Bill No. 6655
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	55	+	7-324 of the general statutes and any other municipal corporation 18
41	56		having the power to levy a tax on property pursuant to chapter 204 of 19
42	57		the general statutes; 20
43	58		(4) "Total tax levied" means the total amount of property taxes a 21
44	59		municipality levies under chapter 204 of the general statutes with 22
45	60		respect to all real property, personal property and motor vehicles; and 23
46	61		(5) "Voter" means any person who is (A) an elector of a municipality, 24
47	62		or (B) a citizen of the United States of the age of eighteen years or more 25
48	63		who, jointly or severally, (i) is liable to the municipality for taxes against 26
49	64		such person on an assessment of not less than one thousand dollars on 27
50	65		the last-completed grand list of such municipality, or (ii) would be so 28
51	66		liable if not entitled to an exemption under subdivision (17), (19), (22), 29
52	67		(23), (25) or (26) of section 12-81 of the general statutes. 30
53	68		(b) (1) For each fiscal year commencing on or after July 1, 2022, the 31
54	69		total tax levied by a municipality shall not exceed two and one-half per 32
55	70		cent of the net grand list of such municipality. 33
56	71		(2) Any municipality in which the total tax levied exceeds the limit 34
57	72		set forth in subdivision (1) of this subsection shall be subject to the 35
58	73		provisions of subsection (c) of this section. 36
59	74		(c) (1) Any municipality in which the total tax levied exceeds the limit 37
60	75		allowed under subsection (b) of this section shall reduce such levy for 38
61	76		each successive fiscal year by not less than fifteen per cent of the total 39
62		-	tax levy for the preceding fiscal year, until such levy does not exceed the 40
	77	+	tax levy for the preceding fiscal year, until such levy does not exceed the 40 Raised Bill No. 6655
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63	83		limit allowed under said subsection, except that no municipality shall 41
64	84		be required to reduce the total tax levied to below the limit allowed 42
65	85		under said subsection. The municipality may adjust any reductions 43
66		-	under this subsection in accordance with the provisions of ~~subdivisions~~ 44
67		-	(2~~) and (3~~) of this subsection. 45
	86	+	under this subsection in accordance with the provisions of subdivision 44
	87	+	(2) of this subsection. 45
68	88		(2) Notwithstanding the provisions of any municipal charter, special 46
69	89		act or home rule ordinance, the legislative body of any municipality 47
70	90		subject to the provisions of subdivision (1) of this subsection may, by a 48
71		-	two-thirds vote of the members present and voting, hold a referendum 49 Substitute Bill No. 6655
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	91	+	two-thirds vote of the members present and voting, hold a referendum 49
78	92		to seek voter approval of the levy of additional taxes by a specified 50
79	93		amount in excess of the amount allowed under subdivision (1) of this 51
80	94		subsection. Such referendum shall be by a "yes" or "no" vote on paper 52
81	95		ballots or on the voting machines of the municipality. The question 53
82	96		submitted to the voters shall be: "Shall the ____ (insert name of the 54
83	97		taxing entity) be allowed to levy an additional $____ (insert the amount) 55
84	98		in real and personal property taxes for the fiscal year commencing July 56
85	99		1, ____ (insert the year)?". 57
86	100		(3) If the amount specified in such question is not greater than one-58
87	101		half of the reduction required pursuant to subdivision (1) of this 59
88	102		subsection, the proposal shall be deemed approved if a majority of the 60
89	103		voters casting votes thereon cast "yes" votes. If the amount specified in 61
90	104		such question is greater than one-half of the reduction required 62
91	105		pursuant to subdivision (1) of this subsection, the proposal shall be 63
92	106		deemed approved if two-thirds of the voters casting votes thereon cast 64
93	107		"yes" votes. In no event shall the amount specified be greater than the 65
94	108		reduction required pursuant to subdivision (1) of this subsection. 66
95	109		(d) (1) In any municipality in which the total tax levied results in a 67
96	110		percentage that is less than or equal to the limit allowed under 68
97	111		subsection (b) of this section, the total tax levied for any fiscal year shall 69
98	112		not exceed an amount equal to one hundred two and one-half per cent 70
99	113		of the maximum levy limit for the preceding fiscal year, except that any 71
100	114		municipality may increase the total tax levied (A) in accordance with the 72
101		-	provisions of subdivision (2) of this subsection, and (B) for the then-73
	115	+	provisions of subdivision (2) of this subsection, and (B) for the then-73 Raised Bill No. 6655
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102	121		current fiscal year, by an amount equal to the tax rate for the preceding 74
103	122		fiscal year multiplied by the amount of increase in the assessed 75
104	123		valuation of any real or personal property over the assessed valuation 76
105	124		during the preceding fiscal year, which real or personal property (i) shall 77
106	125		become subject to the tax under chapter 204 of the general statutes for 78
107	126		the first time or taxed as a separate parcel for the first time, during the 79
108	127		then-current fiscal year, or (ii) has had an increase in its assessed 80
109	128		valuation over the preceding fiscal year, provided such increase in 81
110		-	assessed valuation is not due to revaluation of the entire municipality. 82 Substitute Bill No. 6655
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	129	+	assessed valuation is not due to revaluation of the entire municipality. 82
117	130		(2) Notwithstanding the provisions of any municipal charter, special 83
118	131		act or home rule ordinance, the legislative body of any municipality 84
119	132		may, by a two-thirds vote of the members present and voting, hold a 85
120	133		referendum to seek voter approval to levy additional taxes on real and 86
121	134		personal property by a specified amount in excess of the limit allowed 87
122	135		under subdivision (1) of this subsection. Such vote shall be by a "yes" or 88
123	136		"no" vote on paper ballots or on the voting machines of the municipality. 89
124	137		The question submitted to the voters shall be: "Shall the ____ (insert 90
125	138		name of the taxing entity) be allowed to levy an additional $____ (insert 91
126	139		the amount) in real and personal property taxes for the purposes of ____ 92
127	140		(insert the intended purpose or purposes for which the moneys from the 93
128	141		levy will be used) for the fiscal year commencing July 1, ____ (insert the 94
129	142		year)?". The proposal shall be deemed approved if a majority of the 95
130	143		voters casting votes thereon cast "yes" votes. 96
131	144		(e) Notwithstanding the provisions of any municipal charter, special 97
132	145		act or home rule ordinance, if a majority of the legislative body of any 98
133	146		municipality shall so require or on application of at least fifty voters, 99
134	147		such legislative body shall call a meeting, in accordance with the 100
135	148		provisions of section 7-7 of the general statutes, to submit a question to 101
136	149		voters whether to require the municipality to reduce the taxes levied by 102
137		-	a specified amount below the limit allowed under subdivision (1) of 103
138		-	subsection (d) of this section. Such vote shall be by a "yes" or "no" vote 104
139		-	on paper ballots or on the voting machines of the municipality. The 105
140		-	question submitted to the voters shall be: "Shall the ____ (insert name of 106
141		-	the taxing entity) be required to reduce the amount of real and personal 107
142		-	property taxes to be assessed for the fiscal year commencing July 1, ____ 108
143		-	(insert the year) by an amount equal to $____ (insert the amount)?". The 109
144		-	proposal shall be deemed approved if a majority of the voters casting 110
145		-	votes thereon cast "yes" votes and the tax levy shall be decreased 111
146		-	accordingly. 112
147		-	(f) (1) Notwithstanding the provisions of any municipal charter, 113
148		-	special act or home rule ordinance, the legislative body of any 114
149		-	municipality may, by a two-thirds vote of the members present and 115 Substitute Bill No. 6655
	150	+	a specified amount below the limit allowed under subsection (d) of this 103
	151	+	section. Such vote shall be by a "yes" or "no" vote on paper ballots or on 104
	152	+	the voting machines of the municipality. The question submitted to the 105
	153	+	voters shall be: "Shall the ____ (insert name of the taxing entity) be 106
	154	+	required to reduce the amount of real and personal property taxes to be 107 Raised Bill No. 6655
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155	157
156		-	voting, place a question on the ballot: 116
157		-	(A) At any regular or special state or municipal election held before 117
158		-	the setting of the annual tax rate, for voter approval to levy additional 118
159		-	taxes on real and personal property by a specified amount in excess of 119
160		-	the limit allowed under subsection (b) or subdivision (1) of subsection 120
161		-	(d) of this section for capital outlay expenditures, provided such 121
162		-	expenditures may only be authorized under this subdivision for a 122
163		-	municipal purpose for which the municipality would be authorized to 123
164		-	borrow money under the provisions of title 7 of the general statutes. 124
165		-	Such vote shall be by a "yes" or "no" vote on paper ballots or on the 125
166		-	voting machines of the municipality. The question submitted to the 126
167		-	voters shall be: "Shall the ____ (insert name of the taxing entity) be 127
168		-	allowed to levy an additional $____ (insert the amount) in real and 128
169		-	personal property taxes for the purposes of ____ (insert the intended 129
170		-	purpose or purposes for which the moneys from the levy will be used) 130
171		-	for the fiscal year commencing July 1, ____ (insert the year)?". The 131
172		-	proposal shall be deemed approved if a majority of the voters casting 132
173		-	votes thereon cast "yes" votes; 133
174		-	(B) At any regular or special state or municipal election, for voter 134
175		-	approval to levy additional taxes on real and personal property in excess 135
176		-	of the limit allowed under subsection (b) or subdivision (1) of subsection 136
177		-	(d) of this section for debt payments that are outstanding as of July 1, 137
178		-	2022. Such vote shall be by a "yes" or "no" vote on paper ballots or on the 138
179		-	voting machines of the municipality. The question submitted to the 139
180		-	voters shall be: "Shall ____ (insert the municipality) be allowed to 140
181		-	exempt from ____'s (insert municipality) levy limit the total amounts 141
182		-	required to pay for bonded indebtedness incurred prior to July 1, 2022?". 142
183		-	The proposal shall be deemed approved if a majority of the voters 143
184		-	casting votes thereon cast "yes" votes; and 144
185		-	(C) At any regular or special state or municipal election, for voter 145
186		-	approval to levy additional taxes on real and personal property in excess 146
187		-	of the limit allowed under subsection (b) or subdivision (1) of subsection 147
188		-	(d) of this section for debt payments incurred on or after July 1, 2022. 148 Substitute Bill No. 6655
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	160	+	assessed for the fiscal year commencing July 1, ____ (insert the year) by 108
	161	+	an amount equal to $____ (insert the amount)?". The proposal shall be 109
	162	+	deemed approved if a majority of the voters casting votes thereon cast 110
	163	+	"yes" votes and the tax levy shall be decreased accordingly. 111
	164	+	(f) (1) Notwithstanding the provisions of any municipal charter, 112
	165	+	special act or home rule ordinance, the legislative body of any 113
	166	+	municipality may, by a two-thirds vote of the members present and 114
	167	+	voting, place a question on the ballot: 115
	168	+	(A) At any regular or special state or municipal election held before 116
	169	+	the setting of the annual tax rate, for voter approval to levy additional 117
	170	+	taxes on real and personal property by a specified amount in excess of 118
	171	+	the limit allowed under subsection (b) or (d) of this section for capital 119
	172	+	outlay expenditures, provided such expenditures may only be 120
	173	+	authorized under this subdivision for a municipal purpose for which 121
	174	+	the municipality would be authorized to borrow money under the 122
	175	+	provisions of title 7 of the general statutes. Such vote shall be by a "yes" 123
	176	+	or "no" vote on paper ballots or on the voting machines of the 124
	177	+	municipality. The question submitted to the voters shall be: "Shall the 125
	178	+	____ (insert name of the taxing entity) be allowed to levy an additional 126
	179	+	$____ (insert the amount) in real and personal property taxes for the 127
	180	+	purposes of ____ (insert the intended purpose or purposes for which the 128
	181	+	moneys from the levy will be used) for the fiscal year commencing July 129
	182	+	1, ____ (insert the year)?". The proposal shall be deemed approved if a 130
	183	+	majority of the voters casting votes thereon cast "yes" votes; 131
	184	+	(B) At any regular or special state or municipal election, for voter 132
	185	+	approval to levy additional taxes on real and personal property in excess 133
	186	+	of the limit allowed under subsection (b) or (d) of this section for debt 134
	187	+	payments that are outstanding as of July 1, 2022. Such vote shall be by a 135
	188	+	"yes" or "no" vote on paper ballots or on the voting machines of the 136
	189	+	municipality. The question submitted to the voters shall be: "Shall ____ 137
	190	+	(insert the municipality) be allowed to exempt from ____'s (insert 138
	191	+	municipality) levy limit the total amounts required to pay for bonded 139
	192	+	indebtedness incurred prior to July 1, 2022?". The proposal shall be 140 Raised Bill No. 6655
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195		-	Such vote shall be by a "yes" or "no" vote on paper ballots or on the 149
196		-	voting machines of the municipality. The question submitted to the 150
197		-	voters shall be: "Shall ____ (insert the municipality) be allowed to 151
198		-	exempt from ____'s (insert municipality) levy limit the total amounts 152
199		-	required to pay for the bonds issued in order to ____ (insert the purpose 153
200		-	or purposes for which the moneys from the bonds issued will be used)?". 154
201		-	The proposal shall be deemed approved if a majority of the voters 155
202		-	casting votes thereon cast "yes" votes. 156
203		-	(2) The amounts exempted and additional taxes levied under 157
204		-	subdivision (1) of this subsection and subsection (h) of this section shall 158
205		-	be excluded from the calculation of the total tax levied under subsection 159
206		-	(b) of this section or the maximum levy amount under subdivision (1) 160
207		-	of subsection (d) of this section. 161
208		-	(g) The legislative body of any municipality may direct that the 162
209		-	question or questions authorized for a referendum under this section be 163
210		-	placed on the ballot at any regular or special state or municipal election 164
211		-	or may call a meeting in accordance with the provisions of section 7-7 of 165
212		-	the general statutes to submit such question or questions to voters. 166
213		-	(h) Notwithstanding the provisions of this section or any municipal 167
214		-	charter, special act or home rule ordinance, the legislative body of any 168
215		-	municipality may levy additional taxes in excess of the maximum limit 169
216		-	under subsection (b) or subdivision (1) of subsection (d) of this section 170
217		-	solely for the payment, in whole or in part, of water or sewer debt 171
218		-	charges, provided the aggregate amount of water and sewer charges are 172
219		-	reduced by the aggregate amount of any such additional taxes levied. In 173
220		-	the case of a municipality whose water and sewer service is provided by 174
221		-	an independent commission, authority or district that separately bills 175
222		-	water and sewer users, the municipality may enter into an agreement 176
223		-	with such commission, authority or district to effectuate the purposes of 177
224		-	this subsection. The tax collector or the treasurer of the municipality 178
225		-	shall immediately pay over the taxes collected pursuant to this 179
226		-	subsection, without appropriation by the municipality, to such 180
227		-	commission, authority or district, less any amounts agreed upon by the 181 Substitute Bill No. 6655
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	198	+	deemed approved if a majority of the voters casting votes thereon cast 141
	199	+	"yes" votes; and 142
	200	+	(C) At any regular or special state or municipal election, for voter 143
	201	+	approval to levy additional taxes on real and personal property in excess 144
	202	+	of the limit allowed under subsection (b) or (d) of this section for debt 145
	203	+	payments incurred on or after July 1, 2022. Such vote shall be by a "yes" 146
	204	+	or "no" vote on paper ballots or on the voting machines of the 147
	205	+	municipality. The question submitted to the voters shall be: "Shall ____ 148
	206	+	(insert the municipality) be allowed to exempt from ____'s (insert 149
	207	+	municipality) levy limit the total amounts required to pay for the bonds 150
	208	+	issued in order to ____ (insert the purpose or purposes for which the 151
	209	+	moneys from the bonds issued will be used)?". The proposal shall be 152
	210	+	deemed approved if a majority of the voters casting votes thereon cast 153
	211	+	"yes" votes. 154
	212	+	(2) The amounts exempted and additional taxes levied under 155
	213	+	subdivision (1) of this subsection and subsection (h) of this section shall 156
	214	+	be excluded from the calculation of the total tax levied under subsection 157
	215	+	(b) of this section or the maximum levy amount under subsection (d) of 158
	216	+	this section. 159
	217	+	(g) The legislative body of any municipality may direct that the 160
	218	+	question or questions authorized for a referendum under this section be 161
	219	+	placed on the ballot at any regular or special state or municipal election 162
	220	+	or may call a meeting in accordance with the provisions of section 7-7 of 163
	221	+	the general statutes to submit such question or questions to voters. 164
	222	+	(h) Notwithstanding the provisions of this section or any municipal 165
	223	+	charter, special act or home rule ordinance, the legislative body of any 166
	224	+	municipality may levy additional taxes in excess of the maximum limit 167
	225	+	under subsection (b) or (d) of this section solely for the payment, in 168
	226	+	whole or in part, of water or sewer debt charges, provided the aggregate 169
	227	+	amount of water and sewer charges are reduced by the aggregate 170
	228	+	amount of any such additional taxes levied. In the case of a municipality 171
	229	+	whose water and sewer service is provided by an independent 172 Raised Bill No. 6655
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234		-	parties for administrative costs incurred in carrying out the agreement. 182
235		-	Nothing in this subsection shall be construed to affect the eligibility of 183
236		-	such commission, authority or district to receive loans and grants for 184
237		-	water pollution control projects or eligible drinking water projects. 185
238		-	(i) Notwithstanding the provisions of this section, the legislative body 186
239		-	of any municipality may adjust the limit allowed under subsection (b) 187
240		-	or subdivision (1) of subsection (d) of this section to counterbalance the 188
241		-	effects of extraordinary, nonrecurring events that occurred during the 189
242		-	base year that were not within the purview of normal municipal 190
243		-	financial practices and would otherwise cause a limit to be set that 191
244		-	would be inconsistent with the limits intended under this section, 192
245		-	provided notice of any such adjustment is provided to voters, in writing, 193
246		-	and explained in detail. 194
247		-	Sec. 2. (NEW) (Effective from passage) Notwithstanding the provisions 195
248		-	of any municipal charter, special act or home rule ordinance, any 196
249		-	municipality may impose, by ordinance, a local tax on income, goods, 197
250		-	services or other tangible or intangible assets, or any combination 198
251		-	thereof, as determined by the legislative body of the municipality to be 199
252		-	desirable or necessary to meet the public services and other needs of the 200
253		-	municipality. No such tax shall be effective until notice has been 201
254		-	provided to the residents of the municipality and the general public 202
255		-	about the imposition of such tax, through the posting of information on 203
256		-	the municipality's Internet web page and other appropriate means, as 204
257		-	determined by the legislative body of the municipality. Such ordinance 205
258		-	shall include, but not be limited to, the specific items or amounts on 206
259		-	which such tax will be imposed, the rate and effective date of such tax, 207
260		-	the rate of interest and penalty imposed on the amount of such tax that 208
261		-	is delinquent, the method of collection and remittance of such tax and 209
262		-	the provisions for a taxpayer's right of appeal. 210
263		-	Sec. 3. (NEW) (Effective July 1, 2021) (a) (1) Each municipality that 211
264		-	enters into an interlocal agreement, on or after July 1, 2021, with one or 212
265		-	more municipalities pursuant to section 7-148cc of the general statutes, 213
266		-	for the provision of a service that each such municipality currently 214 Substitute Bill No. 6655
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	234	+
	235	+	commission, authority or district that separately bills water and sewer 173
	236	+	users, the municipality may enter into an agreement with such 174
	237	+	commission, authority or district to effectuate the purposes of this 175
	238	+	subsection. The tax collector or the treasurer of the municipality shall 176
	239	+	immediately pay over the taxes collected pursuant to this subsection, 177
	240	+	without appropriation by the municipality, to such commission, 178
	241	+	authority or district, less any amounts agreed upon by the parties for 179
	242	+	administrative costs incurred in carrying out the agreement. Nothing in 180
	243	+	this subsection shall be construed to affect the eligibility of such 181
	244	+	commission, authority or district to receive loans and grants for water 182
	245	+	pollution control projects or eligible drinking water projects. 183
	246	+	(i) Notwithstanding the provisions of this section, the legislative body 184
	247	+	of any municipality may adjust the limit allowed under subsection (b) 185
	248	+	or (d) of this section to counterbalance the effects of extraordinary, 186
	249	+	nonrecurring events that occurred during the base year that were not 187
	250	+	within the purview of normal municipal financial practices and would 188
	251	+	otherwise cause a limit to be set that would be inconsistent with the 189
	252	+	limits intended under this section, provided notice of any such 190
	253	+	adjustment is provided to voters, in writing, and explained in detail. 191
	254	+	Sec. 2. (NEW) (Effective from passage) Notwithstanding the provisions 192
	255	+	of any municipal charter, special act or home rule ordinance, any 193
	256	+	municipality may impose, by ordinance, a local tax on income, goods, 194
	257	+	services or other tangible or intangible assets, or any combination 195
	258	+	thereof, as determined by the legislative body of the municipality to be 196
	259	+	desirable or necessary to meet the public services and other needs of the 197
	260	+	municipality. No such tax shall be effective until notice has been 198
	261	+	provided to the residents of the municipality and the general public 199
	262	+	about the imposition of such tax, through the posting of information on 200
	263	+	the municipality's Internet web page and other appropriate means, as 201
	264	+	determined by the legislative body of the municipality. Such ordinance 202
	265	+	shall include, but not be limited to, the specific items or amounts on 203
	266	+	which such tax will be imposed, the rate and effective date of such tax, 204
	267	+	the rate of interest and penalty imposed on the amount of such tax that 205
	268	+	is delinquent, the method of collection and remittance of such tax and 206 Raised Bill No. 6655
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273		-	provides separately shall be eligible for a grant in the following amounts 215
274		-	for each year such municipality remains a party to such agreement and 216
275		-	the applicable service is provided on a regional basis: 217
276		-	(A) For the provision of education, ten per cent of the amount 218
277		-	budgeted for education in the municipality's most recently approved 219
278		-	budget; 220
279		-	(B) For the provision of police services, fire-fighting services or 221
280		-	emergency medical services, five per cent of the amount budgeted in the 222
281		-	municipality's most recently approved budget and attributable to the 223
282		-	specific service being provided on a regional basis; and 224
283		-	(C) For the provision of any other service, two and one-half per cent 225
284		-	of the amount budgeted in the municipality's most recently approved 226
285		-	budget and attributable to the specific service being provided on a 227
286		-	regional basis. 228
287		-	(2) Any municipality eligible to receive a grant under subdivision (1) 229
288		-	of this subsection may receive more than one grant under said 230
289		-	subdivision. Any grant received under this section shall be in addition 231
290		-	to any other grants or funds such municipality is eligible to receive. 232
291		-	(b) Each municipality eligible to receive a grant under subsection (a) 233
292		-	of this section shall submit an application annually to the Secretary of 234
293		-	the Office of Policy and Management, in such form and manner as the 235
294		-	secretary prescribes. The application shall include, but not be limited to, 236
295		-	a description of the specific service being provided on a regional basis, 237
296		-	the other municipality or municipalities that are a party to the 238
297		-	agreement entered into under subsection (a) of this section and 239
298		-	documentation of the amount budgeted in the municipality's most 240
299		-	recently approved budget and attributable to the specific service being 241
300		-	provided on a regional basis. The secretary shall review each application 242
301		-	to verify the provision of the service claimed in such application and 243
302		-	calculate the amount of the grant or grants due to a municipality under 244
303		-	this section. Payment of such grants shall be made from the municipal 245 Substitute Bill No. 6655
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	273	+
	274	+	the provisions for a taxpayer's right of appeal. 207
	275	+	Sec. 3. (NEW) (Effective July 1, 2021) (a) (1) Each municipality that 208
	276	+	enters into an interlocal agreement, on or after July 1, 2021, with one or 209
	277	+	more municipalities pursuant to section 7-148cc of the general statutes, 210
	278	+	for the provision of a service that each such municipality currently 211
	279	+	provides separately shall be eligible for a grant in the following amounts 212
	280	+	for each year such municipality remains a party to such agreement and 213
	281	+	the applicable service is provided on a regional basis: 214
	282	+	(A) For the provision of education, ten per cent of the amount 215
	283	+	budgeted for education in the municipality's most recently approved 216
	284	+	budget; 217
	285	+	(B) For the provision of police services, fire-fighting services or 218
	286	+	emergency medical services, five per cent of the amount budgeted in the 219
	287	+	municipality's most recently approved budget and attributable to the 220
	288	+	specific service being provided on a regional basis; and 221
	289	+	(C) For the provision of any other service, two and one-half per cent 222
	290	+	of the amount budgeted in the municipality's most recently approved 223
	291	+	budget and attributable to the specific service being provided on a 224
	292	+	regional basis. 225
	293	+	(2) Any municipality eligible to receive a grant under subdivision (1) 226
	294	+	of this subsection may receive more than one grant under said 227
	295	+	subdivision. Any grant received under this section shall be in addition 228
	296	+	to any other grants or funds such municipality is eligible to receive. 229
	297	+	(b) Each municipality eligible to receive a grant under subsection (a) 230
	298	+	of this section shall submit an application annually to the Secretary of 231
	299	+	the Office of Policy and Management, in such form and manner as the 232
	300	+	secretary prescribes. The application shall include, but not be limited to, 233
	301	+	a description of the specific service being provided on a regional basis, 234
	302	+	the other municipality or municipalities that are a party to the 235
	303	+	agreement entered into under subsection (a) of this section and 236
	304	+	documentation of the amount budgeted in the municipality's most 237 Raised Bill No. 6655
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310		-	revenue sharing account established under section 4-66l of the general 246
311		-	statutes, as amended by this act. 247
312		-	(c) Any municipality that terminates or withdraws from an 248
313		-	agreement entered into under subsection (a) of this section or otherwise 249
314		-	ceases to provide a service on a regional basis shall be ineligible to 250
315		-	receive a grant under this section commencing with the fiscal year in 251
316		-	which such termination or withdrawal occurred. 252
317		-	(d) Any provision of a municipal charter, special act or home rule 253
318		-	ordinance that prohibits or limits a municipality from sharing services 254
319		-	with other municipalities is hereby repealed, revoked and rescinded. 255
320		-	(e) Any collective bargaining unit may enter into an agreement with 256
321		-	one or more collective bargaining units to establish a coalition 257
322		-	bargaining unit to negotiate with municipalities for the provision of 258
323		-	public services on a regional basis, including, but not limited to, 259
324		-	education, police services, fire-fighting services and emergency medical 260
325		-	services. 261
326		-	Sec. 4. Subsection (b) of section 4-66l of the general statutes, as 262
327		-	amended by section 6 of public act 21-3, is repealed and the following is 263
328		-	substituted in lieu thereof (Effective July 1, 2021): 264
329		-	(b) There is established an account to be known as the "municipal 265
330		-	revenue sharing account" which shall be a separate, nonlapsing account 266
331		-	within the General Fund. The account shall contain any moneys 267
332		-	required by law to be deposited in the account. The secretary shall set 268
333		-	aside and ensure availability of moneys in the account in the following 269
334		-	order of priority and shall transfer or disburse such moneys as follows: 270
335		-	(1) Ten million dollars for the fiscal year ending June 30, 2016, shall 271
336		-	be transferred not later than April fifteenth for the purposes of grants 272
337		-	under section 10-262h; 273
338		-	(2) For the fiscal year ending June 30, 2018, and each fiscal year 274
339		-	thereafter, moneys sufficient to make motor vehicle property tax grants 275 Substitute Bill No. 6655
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	309	+
	310	+	recently approved budget and attributable to the specific service being 238
	311	+	provided on a regional basis. The secretary shall review each application 239
	312	+	to verify the provision of the service claimed in such application and 240
	313	+	calculate the amount of the grant or grants due to a municipality under 241
	314	+	this section. Payment of such grants shall be made from the municipal 242
	315	+	revenue sharing account established under section 4-66l of the general 243
	316	+	statutes, as amended by this act. 244
	317	+	(c) Any municipality that terminates or withdraws from an 245
	318	+	agreement entered into under subsection (a) of this section or otherwise 246
	319	+	ceases to provide a service on a regional basis shall be ineligible to 247
	320	+	receive a grant under this section commencing with the fiscal year in 248
	321	+	which such termination or withdrawal occurred. 249
	322	+	(d) Any provision of a municipal charter, special act or home rule 250
	323	+	ordinance that prohibits or limits a municipality from sharing services 251
	324	+	with other municipalities are hereby repealed, revoked and rescinded. 252
	325	+	(e) Any collective bargaining unit may enter into an agreement with 253
	326	+	one or more collective bargaining units to establish a coalition 254
	327	+	bargaining unit to negotiate with municipalities for the provision of 255
	328	+	public services on a regional basis, including, but not limited to, 256
	329	+	education, police services, fire-fighting services and emergency medical 257
	330	+	services. 258
	331	+	Sec. 4. Subsection (b) of section 4-66l of the general statutes, as 259
	332	+	amended by section 6 of public act 21-3, is repealed and the following is 260
	333	+	substituted in lieu thereof (Effective July 1, 2021): 261
	334	+	(b) There is established an account to be known as the "municipal 262
	335	+	revenue sharing account" which shall be a separate, nonlapsing account 263
	336	+	within the General Fund. The account shall contain any moneys 264
	337	+	required by law to be deposited in the account. The secretary shall set 265
	338	+	aside and ensure availability of moneys in the account in the following 266
	339	+	order of priority and shall transfer or disburse such moneys as follows: 267
	340	+	(1) Ten million dollars for the fiscal year ending June 30, 2016, shall 268 Raised Bill No. 6655
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346		-	payable to municipalities pursuant to subsection (c) of this section shall 276
347		-	be expended not later than August first annually by the secretary; 277
348		-	(3) For the fiscal year ending June 30, 2022, and each fiscal year 278
349		-	thereafter, moneys sufficient to make the grants payable pursuant to 279
350		-	subsection (d) of section 12-18b, as amended by [this act] public act 21-280
351		-	3, shall be expended by the secretary; 281
352		-	(4) For the fiscal years ending June 30, 2018, and June 30, 2019, 282
353		-	moneys sufficient to make the municipal revenue sharing grants 283
354		-	payable to municipalities pursuant to subdivision (2) of subsection (d) 284
355		-	of this section shall be expended not later than October thirty-first 285
356		-	annually by the secretary; 286
357		-	(5) For the fiscal year ending June 30, 2018, and each fiscal year 287
358		-	thereafter, seven million dollars shall be expended for the purposes of 288
359		-	the regional services grants pursuant to subsection (e) of this section to 289
360		-	the regional councils of governments; 290
361		-	(6) For the fiscal year ending June 30, 2018, and each fiscal year 291
362		-	thereafter, moneys may be expended for the purpose of supplemental 292
363		-	motor vehicle property tax grants pursuant to subsection (c) of this 293
364		-	section; [and] 294
365		-	(7) For the fiscal year ending June 30, 2022, and each fiscal year 295
366		-	thereafter, moneys sufficient to make the grants payable to 296
367		-	municipalities pursuant to subsection (b) of section 3 of this act; and 297
368		-	[(7)] (8) For the fiscal year ending June 30, 2020, and each fiscal year 298
369		-	thereafter, moneys in the account remaining shall be expended annually 299
370		-	by the secretary for the purposes of the municipal revenue sharing 300
371		-	grants established pursuant to subsection (f) of this section. Any such 301
372		-	moneys deposited in the account for municipal revenue sharing grants 302
373		-	between October first and June thirtieth shall be distributed to 303
374		-	municipalities on the following October first and any such moneys 304
375		-	deposited in the account between July first and September thirtieth shall 305
376		-	be distributed to municipalities on the following January thirty-first. 306 Substitute Bill No. 6655
	344	+	LCO No. 5641 10 of 11
	345	+
	346	+	be transferred not later than April fifteenth for the purposes of grants 269
	347	+	under section 10-262h; 270
	348	+	(2) For the fiscal year ending June 30, 2018, and each fiscal year 271
	349	+	thereafter, moneys sufficient to make motor vehicle property tax grants 272
	350	+	payable to municipalities pursuant to subsection (c) of this section shall 273
	351	+	be expended not later than August first annually by the secretary; 274
	352	+	(3) For the fiscal year ending June 30, 2022, and each fiscal year 275
	353	+	thereafter, moneys sufficient to make the grants payable pursuant to 276
	354	+	subsection (d) of section 12-18b, as amended by [this act] public act 21-277
	355	+	3, shall be expended by the secretary; 278
	356	+	(4) For the fiscal years ending June 30, 2018, and June 30, 2019, 279
	357	+	moneys sufficient to make the municipal revenue sharing grants 280
	358	+	payable to municipalities pursuant to subdivision (2) of subsection (d) 281
	359	+	of this section shall be expended not later than October thirty-first 282
	360	+	annually by the secretary; 283
	361	+	(5) For the fiscal year ending June 30, 2018, and each fiscal year 284
	362	+	thereafter, seven million dollars shall be expended for the purposes of 285
	363	+	the regional services grants pursuant to subsection (e) of this section to 286
	364	+	the regional councils of governments; 287
	365	+	(6) For the fiscal year ending June 30, 2018, and each fiscal year 288
	366	+	thereafter, moneys may be expended for the purpose of supplemental 289
	367	+	motor vehicle property tax grants pursuant to subsection (c) of this 290
	368	+	section; [and] 291
	369	+	(7) For the fiscal year ending June 30, 2022, and each fiscal year 292
	370	+	thereafter, moneys sufficient to make the grants payable to 293
	371	+	municipalities pursuant to subsection (c) of section 3 of this act; and 294
	372	+	[(7)] (8) For the fiscal year ending June 30, 2020, and each fiscal year 295
	373	+	thereafter, moneys in the account remaining shall be expended annually 296
	374	+	by the secretary for the purposes of the municipal revenue sharing 297
	375	+	grants established pursuant to subsection (f) of this section. Any such 298 Raised Bill No. 6655
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383		-	Any municipality may apply to the Office of Policy and Management 307
384		-	on or after July first for early disbursement of a portion of such grant. 308
385		-	The Office of Policy and Management may approve such an application 309
386		-	if it finds that early disbursement is required in order for a municipality 310
387		-	to meet its cash flow needs. No early disbursement approved by said 311
388		-	office may be issued later than September thirtieth. 312
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	380	+
	381	+	moneys deposited in the account for municipal revenue sharing grants 299
	382	+	between October first and June thirtieth shall be distributed to 300
	383	+	municipalities on the following October first and any such moneys 301
	384	+	deposited in the account between July first and September thirtieth shall 302
	385	+	be distributed to municipalities on the following January thirty-first. 303
	386	+	Any municipality may apply to the Office of Policy and Management 304
	387	+	on or after July first for early disbursement of a portion of such grant. 305
	388	+	The Office of Policy and Management may approve such an application 306
	389	+	if it finds that early disbursement is required in order for a municipality 307
	390	+	to meet its cash flow needs. No early disbursement approved by said 308
	391	+	office may be issued later than September thirtieth. 309
389	392		This act shall take effect as follows and shall amend the following
390	393		sections:
391	394
392	395		Section 1 July 1, 2022 New section
393	396		Sec. 2 from passage New section
394	397		Sec. 3 July 1, 2021 New section
395	398		Sec. 4 July 1, 2021 4-66l(b)
396	399
397		-	Statement of Legislative Commissioners:
398		-	Throughout Section 1, references to subsection (d) were changed to
399		-	"subdivision (1) of subsection (d)" for clarity; in Section 1 (c)(1),
400		-	"subdivision (2)" was changed to "subdivisions (2) and (3)" for accuracy;
401		-	and in Section 4(b)(7), "(c)" was changed to "(b)" for accuracy.
402		-
403		-	FIN Joint Favorable Subst. -LCO
404		-
	400	+	Statement of Purpose:
	401	+	To limit property tax increases, authorize municipalities to impose local
	402	+	taxes and incentivize municipal regionalization of services.
	403	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	404	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	405	+	underlined.]