Connecticut Senate Bill SB01240

Connecticut 2023 Regular Session

• Introduced: 4/6/23
• Refer: 4/6/23

Caption

An Act Concerning The Mill Rate For Commercial And Industrial Real Property, Implementing A Municipal Tax Revenue Sharing Program And Establishing Tax Credit Voucher Programs To Incentivize Commercial Leases And Residential Conversions.

Impact

The proposed legislation seeks to foster economic development by encouraging new commercial leases and the conversion of underutilized properties into residential or mixed-use buildings. Tax credit voucher programs are outlined to incentivize businesses to expand and improve their leased spaces, focusing particularly on distressed municipalities. This is expected to revitalize certain urban areas by attracting more businesses and residents, thus enhancing local economies.

Summary

SB01240 aims to implement a cap on the mill rate for commercial and industrial real property, establishing a maximum of 31.25 mills for assessment years beginning October 1, 2023. This change is designed to standardize tax rates across municipalities and benefit businesses by reducing their tax burden. The bill also introduces a reimbursement mechanism for municipalities to cover any revenue loss due to the mill rate cap, thereby ensuring that local governments are not adversely affected by the new regulations.

Contention

While proponents argue that the bill will stimulate economic growth and bring benefit to both municipalities and businesses, critics may view the mill rate cap as a potential threat to local revenue. Concerns have been voiced about the long-term sustainability of municipal funding if significant revenue shortfalls occur without adequate state support. The focus on commercial leases and residential conversions might also lead to debates over zoning laws and the location of affordable housing projects, balancing urban development and community needs.