Connecticut Senate Bill SB00615

Connecticut 2021 Regular Session

• Introduced: 1/28/21
• Refer: 1/28/21

Caption

An Act Concerning Payments In Lieu Of Taxes To The City Of New London For The Connecticut Port Authority Property.

Impact

The passage of SB00615 would have significant implications for fiscal management in New London, providing critical financial support that could help the city maintain essential services. By compensating the local government for nontaxable properties, the bill aims to ensure that cities like New London are not unduly burdened by the absence of tax revenue from these properties. This financial arrangement may also set a precedent for similar cases in other municipalities facing comparable challenges due to state or federally owned properties.

Summary

SB00615 is a proposed bill that aims to address the financial impact on the city of New London related to the Connecticut Port Authority property. The bill stipulates that the state of Connecticut is to provide an annual payment of $400,000 to New London as a form of reimbursement for losses associated with the ownership of nontaxable property. This legislation reflects an effort to alleviate the financial strain on local government caused by the presence of state-owned property that does not contribute to the city’s tax base.

Contention

While the bill seems to be a straightforward financial adjustment, discussions around it may bring forth notions of local versus state fiscal responsibilities. Some stakeholders might argue that this reimbursement model does not sufficiently address the needs of local communities, leading to potential debates on whether the state should take more comprehensive steps to support municipal budgets affected by tax-exempt landholdings. The effectiveness of a $400,000 annual payment may also be scrutinized in terms of its adequacy in covering the costs incurred by the city due to such properties.