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OLR Bill Analysis
sSB 626
AN ACT ESTABLISHING AN ENTERPRISE ZONE IN THE TOWN
OF PLYMOUTH.
SUMMARY
This bill creates a new enterprise zone by requiring the Department
of Economic and Community Development commissioner to approve
the designation of a zone in Plymouth on or after July 1, 2021. The bill
identifies Plymouth by it having the following features based on the
2010 federal census: (1) population between 12,200 and 12,300, (2)
maximum total area of 22.34 square miles, and (3) maximum average
population density of 559.3 people per square mile of land.
Generally, to designate an area as an enterprise zone, municipalities
must have qualified as “distressed municipalities” as of February 1,
1986. The area must also meet certain poverty or unemployment
criteria. The bill allows Plymouth to designate an enterprise zone
without meeting these criteria.
Under the bill, the designated enterprise zone in Plymouth must be
two contiguous census tracts, contiguous portions of these tracts, or all
or part of an individual census tract, according to the most recent
census. If a designated area is covered by zoning, part of the area must
be zoned for commercial or industrial activity.
Businesses located in these zones may receive the same property tax
benefits as those in existing enterprise zones, which include two
benefits. First, businesses may receive a five-year, 80% property tax
exemption for improving or acquiring “manufacturing facilities” and
acquiring machinery and equipment. The state generally reimburses
the municipality for half the forgone property tax revenue, depending
on available funding (CGS § 12-81(59) & (60)). Second, they may
receive a seven-year property tax exemption (100% in first two years, 2021SB-00626-R000232-BA.DOCX
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50% in the third, and a decrease of 10 percentage points in each of the
remaining four years), with no state reimbursement, for commercial
and residential real property improvements that do not qualify for the
5-year, 80% exemption (other than manu facturing facility
improvements) (CGS § 32-71).
EFFECTIVE DATE: July 1, 2021
COMMITTEE ACTION
Commerce Committee
Joint Favorable
Yea 23 Nay 0 (03/18/2021)