Connecticut Senate Bill SB00747

Connecticut 2021 Regular Session

• Introduced: 1/29/21
• Refer: 1/29/21

Caption

An Act Exempting From The Personal Income Tax Proceeds From The Sale Of Agricultural Land Development Rights To The State.

Impact

The proposed exemption could have significant implications for state laws surrounding agriculture and land use. By creating a financial incentive, the bill is expected to help maintain agricultural spaces, thus influencing land use policies and contributing to environmental sustainability. This could ensure that valuable agricultural land is not converted to urban developments, thereby supporting local food systems and agricultural economy.

Summary

SB00747 proposes to exempt proceeds from the sale of agricultural land development rights to the state from personal income tax. This initiative is introduced with an intention to encourage farmers and landowners to sell their development rights, potentially preserving agricultural land and promoting sustainable practices. By alleviating the tax burden on these transactions, the bill aims to incentivize more landowners to engage in conservation efforts by selling their rights instead of opting for immediate development.

Contention

Certain stakeholders may raise concerns about the bill's implications for tax revenues at both state and local levels, as exempting these proceeds could reduce overall tax intake from agriculture-related transactions. Debates may emerge surrounding the effectiveness of such tax policies in genuinely promoting agricultural sustainability versus their potential for creating loopholes that could be exploited. Opposition may also come from those who believe that it is inappropriate to exempt certain sales from taxation while other similar transactions remain taxable.