Connecticut Senate Bill SB01068

Connecticut 2021 Regular Session

• Introduced: 3/17/21
• Refer: 3/17/21

Caption

An Act Concerning Property Taxes And Affordable Housing.

Impact

The most significant effect of this legislation is its attempt to link property taxes directly to the presence of affordable housing options, thereby incentivizing municipalities to develop and maintain affordable housing stocks. Municipalities with more than 10% affordable housing would not incur additional assessments, while those with lesser percentages would face a graduated assessment rate, potentially impacting local revenue generation and housing development initiatives. This correlation of housing availability to tax policy illustrates a shift toward addressing housing shortages through fiscal means.

Summary

SB01068, titled 'An Act Concerning Property Taxes And Affordable Housing,' seeks to introduce an additional property tax assessment on residential real estates across municipalities based on their proportion of affordable housing units. The bill mandates that each local government impose an additional assessment on every residential property, with the first $300,000 of assessed value exempt from this extra charge. The rate applied depends on the local percentage of affordable housing units, aiming to create a structured financial obligation that aligns with regional housing needs.

Contention

Positions on SB01068 are likely to vary among local governments and stakeholders. Proponents argue that the bill offers a fair approach to funding local initiatives tied to housing development and community needs. They believe that the graduated assessment would promote equity across communities with varying housing circumstances. However, critics might voice concerns about the financial implications for municipalities with less affordable housing, fearing that it could strain local budgets or discourage development by creating additional tax burdens. The challenge lies in achieving a balance between incentivizing affordable housing and protecting municipal financial health.