LCO 1 of 9
General Assembly Substitute Bill No. 7151
January Session, 2025
AN ACT REQUIRING THE OFFICE OF POLICY AND MANAGEMENT
TO PROVIDE TECHNICAL ASSISTANCE TO CERTAIN
MUNICIPALITIES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 4-66l of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective October 1, 2025): 2
(a) For the purposes of this section: 3
(1) "FY 15 mill rate" means the mill rate a municipality used during 4
the fiscal year ending June 30, 2015; 5
(2) "Mill rate" means, unless otherwise specified, the mill rate a 6
municipality uses to calculate tax bills for motor vehicles; 7
(3) "Municipality" means any town, city, consolidated town and city 8
or consolidated town and borough; 9
(4) "Municipal spending" means: 10
T1
Municipal Municipal
T2
spending for spending for
T3
the fiscal year – the fiscal year
T4
prior to the two years Substitute Bill No. 7151
LCO 2 of 9
T5
current fiscal prior to the
T6
year current year
T7 _______________________________ X 100 = Municipal spending;
T8
Municipal spending for the fiscal
T9
year two years prior to the
T10
current year
"Municipal spending" does not include expenditures for debt service, 11
special education, implementation of court orders or arbitration awards, 12
expenditures associated with a major disaster or emergency declaration 13
by the President of the United States, a disaster emergency declaration 14
issued by the Governor pursuant to chapter 517 or any disbursement 15
made to a district pursuant to subsection (c) or (e) of this section, 16
budgeting for an audited deficit, nonrecurring grants, capital 17
expenditures or payments on unfunded pension liabilities. 18
(5) "Per capita distribution" means: 19
T11 Municipal population
T12 _____________________ X Sales tax revenue = Per capita distribution;
T13
Total state population
(6) "Pro rata distribution" means: 20
T14
Municipal weighted
T15
mill rate
T16
calculation
T17 ___________________ X Sales tax revenue = Pro rata distribution;
T18
Sum of all municipal
T19 weighted mill rate
T20
calculations combined
(7) "Regional council of governments" means any such council 21
organized under the provisions of sections 4-124i to 4-124p, inclusive; 22 Substitute Bill No. 7151
LCO 3 of 9
(8) "Municipal population" means the number of persons in a 23
municipality according to the most recent estimate of the Department of 24
Public Health; 25
(9) "Total state population" means the number of persons in this state 26
according to the most recent estimate published by the Department of 27
Public Health; 28
(10) "Weighted mill rate" means a municipality's FY 15 mill rate 29
divided by the average of all municipalities' FY 15 mill rate; 30
(11) "Weighted mill rate calculation" means per capita distribution 31
multiplied by a municipality's weighted mill rate; 32
(12) "Sales tax revenue" means the moneys in the account remaining 33
for distribution pursuant to subdivision (3) of subsection (b) of this 34
section; 35
(13) "District" means any district, as defined in section 7-324; [and] 36
(14) "Secretary" means the Secretary of the Office of Policy and 37
Management; 38
(15) "Adopted budget expenditures" means any expenditure from a 39
municipality's general fund or any nonbudgeted funds; and 40
(16) "Capital expenditure" means a nonrecurring capital expenditure 41
of one hundred thousand dollars or more. 42
(b) There is established an account to be known as the "municipal 43
revenue sharing account" which shall be a separate, nonlapsing account 44
within the General Fund. The account shall contain any moneys 45
required by law to be deposited in the account. The secretary shall set 46
aside and ensure availability of moneys in the account in the following 47
order of priority and shall transfer or disburse such moneys as follows: 48
(1) For the fiscal years ending June 30, 2022, and June 30, 2023, 49
moneys sufficient to make motor vehicle property tax grants payable to 50 Substitute Bill No. 7151
LCO 4 of 9
municipalities pursuant to subsection (c) of this section shall be 51
expended not later than August first annually by the secretary; 52
(2) For the fiscal years ending June 30, 2022, and June 30, 2023, 53
moneys sufficient to make the grants payable pursuant to subsection (d) 54
of section 12-18b, subdivisions (1) and (3) of subsection (e) of section 12-55
18b, subsection (b) of section 12-19b and subsections (b) and (c) of 56
section 12-20b shall be expended by the secretary; and 57
(3) For the fiscal years ending June 30, 2022, and June 30, 2023, 58
moneys in the account remaining shall be expended annually by the 59
secretary for the purposes of the municipal revenue sharing grants 60
established pursuant to subsection (d) of this section. Any such moneys 61
deposited in the account for municipal revenue sharing grants, 62
including moneys accrued to the account during each fiscal year but 63
received after the end of such fiscal year, shall be distributed to 64
municipalities not later than October first following the end of each 65
fiscal year. Any municipality may apply to the Office of Policy and 66
Management on or after July first for early disbursement of a portion of 67
such grant. The Office of Policy and Management may approve such an 68
application if it finds that early disbursement is required in order for a 69
municipality to meet its cash flow needs. No early disbursement 70
approved by said office may be issued later than September thirtieth. 71
(c) (1) For the fiscal year ending June 30, 2022, motor vehicle property 72
tax grants to municipalities that impose mill rates on real property and 73
personal property other than motor vehicles greater than 45 mills or 74
that, when combined with the mill rate of any district located within the 75
municipality, impose mill rates greater than 45 mills, shall be made in 76
an amount equal to the difference between the amount of property taxes 77
levied by the municipality and any district located within the 78
municipality on motor vehicles for the assessment year commencing 79
October 1, 2017, and the amount such levy would have been if the mill 80
rate on motor vehicles for said assessment year was equal to the mill 81
rate imposed by such municipality and any district located within the 82
municipality on real property and personal property other than motor 83 Substitute Bill No. 7151
LCO 5 of 9
vehicles. 84
(2) Not later than fifteen calendar days after receiving a property tax 85
grant pursuant to this section, the municipality shall disburse to any 86
district located within the municipality the amount of any such property 87
tax grant that is attributable to the district. 88
(3) For the fiscal year ending June 30, 2023, and each fiscal year 89
thereafter, motor vehicle property tax grants shall be made to: 90
(A) Municipalities that imposed mill rates greater than 32.46 mills on 91
real property and personal property other than motor vehicles for the 92
preceding fiscal year, in an amount equal to the difference between (i) 93
the amount of property taxes the municipality would have levied on 94
motor vehicles for the preceding fiscal year if the mill rate imposed on 95
motor vehicles for such year was 32.46 mills, and (ii) the amount of 96
property taxes the municipality would have levied on motor vehicles 97
for the preceding fiscal year if the mill rate imposed on motor vehicles 98
for such year was equal to the mill rate imposed on real property and 99
personal property other than motor vehicles for such year; and 100
(B) Districts that imposed mill rates that, when combined with the 101
mill rate of the municipality in which the district is located, were greater 102
than 32.46 mills on real property and personal property other than 103
motor vehicles for the preceding fiscal year, in an amount equal to the 104
difference between (i) the amount of property taxes the district would 105
have levied on motor vehicles for the preceding fiscal year if the mill 106
rate imposed on motor vehicles for such year, when combined with the 107
mill rate imposed on motor vehicles for such year by the municipality 108
in which the district is located, was 32.46 mills, and (ii) the amount of 109
property taxes the district would have levied on motor vehicles for the 110
preceding fiscal year if the mill rate imposed on motor vehicles for such 111
year, when combined with the mill rate imposed on motor vehicles for 112
such year by the municipality in which the district is located, was equal 113
to the mill rate imposed by the district on real property and personal 114
property other than motor vehicles for such year. 115 Substitute Bill No. 7151
LCO 6 of 9
(d) For the fiscal year ending June 30, 2020, and each fiscal year 116
thereafter, each municipality shall receive a municipal revenue sharing 117
grant as follows: 118
(1) (A) A municipality having a mill rate at or above twenty-five shall 119
receive the per capita distribution or pro rata distribution, whichever is 120
higher for such municipality. 121
(B) Such grants shall be increased by a percentage calculated as 122
follows: 123
T21 Sum of per capita distribution amount
T22
for all municipalities having a mill rate
T23
below twenty-five – pro rata distribution
T24
amount for all municipalities
T25
having a mill rate below twenty-five
T26
_______________________________________
T27
Sum of all grants to municipalities
T28
calculated pursuant to subparagraph (A)
T29
of subdivision (1) of this subsection.
(C) Notwithstanding the provisions of subparagraphs (A) and (B) of 124
this subdivision, Hartford shall receive not more than 5.2 per cent of the 125
municipal revenue sharing grants distributed pursuant to this 126
subsection; Bridgeport shall receive not more than 4.5 per cent of the 127
municipal revenue sharing grants distributed pursuant to this 128
subsection; New Haven shall receive not more than 2.0 per cent of the 129
municipal revenue sharing grants distributed pursuant to this 130
subsection and Stamford shall receive not more than 2.8 per cent of the 131
equalization grants distributed pursuant to this subsection. Any excess 132
funds remaining after such reductions in payments to Hartford, 133
Bridgeport, New Haven and Stamford shall be distributed to all other 134
municipalities having a mill rate at or above twenty-five on a pro rata 135
basis according to the payment they receive pursuant to this 136
subdivision; and 137 Substitute Bill No. 7151
LCO 7 of 9
(2) A municipality having a mill rate below twenty-five shall receive 138
the per capita distribution or pro rata distribution, whichever is less for 139
such municipality. 140
(3) For the purposes of this subsection, "mill rate" means the mill rate 141
for real property and personal property other than motor vehicles. 142
(e) Except as provided in subsection (c) of this section, a municipality 143
may disburse any municipal revenue sharing grant funds to a district 144
within such municipality. 145
(f) (1) Except as provided in [subdivision] subdivisions (2) and (3) of 146
this subsection, for the fiscal year ending June 30, 2018, and each fiscal 147
year thereafter, the amount of the grant payable to a municipality in any 148
year in accordance with subsection (d) of this section shall be reduced if 149
such municipality increases its adopted budget expenditures for such 150
fiscal year above a cap equal to the amount of adopted budget 151
expenditures authorized for the previous fiscal year by 2.5 per cent or 152
more or the rate of inflation, whichever is greater. Such reduction shall 153
be in an amount equal to fifty cents for every dollar expended over the 154
cap set forth in this subsection. [For the purposes of this section, (A) 155
"municipal spending" does not include expenditures for debt service, 156
special education, implementation of court orders or arbitration awards, 157
expenditures associated with a major disaster or emergency declaration 158
by the President of the United States, a disaster emergency declaration 159
issued by the Governor pursuant to chapter 517 or any disbursement 160
made to a district pursuant to subsection (c) or (e) of this section, 161
budgeting for an audited deficit, nonrecurring grants, capital 162
expenditures or payments on unfunded pension liabilities, (B) "adopted 163
budget expenditures" includes expenditures from a municipality's 164
general fund and expenditures from any nonbudgeted funds, and (C) 165
"capital expenditure" means a nonrecurring capital expenditure of one 166
hundred thousand dollars or more.] Each municipality shall annually 167
certify to the secretary, on a form prescribed by [said] the secretary, 168
whether such municipality has exceeded the cap set forth in this 169
subsection, and if so, the amount by which the cap was exceeded by 170 Substitute Bill No. 7151
LCO 8 of 9
such municipality, except that in any fiscal year for which the secretary 171
publishes a list of payments made to municipalities by state agencies on 172
the Internet web site of the Office of Policy and Management, such 173
certification shall not be required. 174
(2) For the fiscal year ending June 30, 2018, and each fiscal year 175
thereafter, the amount of the grant payable to a municipality in any year 176
in accordance with subsection (d) of this section shall not be reduced in 177
the case of a municipality whose adopted budget expenditures exceed 178
the cap set forth in subdivision (1) of this subsection by an amount 179
proportionate to any increase to its municipal population from the 180
previous fiscal year, as determined by the secretary. 181
(3) For the fiscal year ending June 30, 2026, the amount of the grant 182
payable to a municipality in accordance with subsection (d) of this 183
section shall not be reduced in the case of a municipality whose adopted 184
budget expenditures exceed the cap set forth in subdivision (1) of this 185
subsection. 186
(g) For the fiscal years ending June 30, 2020, to June 30, 2023, 187
inclusive, the amount of the grant payable to a municipality in any year 188
in accordance with subsection (d) of this section shall be reduced 189
proportionately [in the event that] if the total of such grants in such year 190
exceeds the amount available for such grants in the municipal revenue 191
sharing account established pursuant to subsection (b) of this section. 192
(h) For the fiscal year ending June 30, 2025, and each fiscal year 193
thereafter, the secretary shall provide technical assistance upon request 194
to any municipality that receives a grant pursuant to subsection (c) of 195
this section for the purpose of assisting such municipality in 196
determining such municipality's eligibility for such grant in subsequent 197
fiscal years. 198
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2025 4-66l Substitute Bill No. 7151
LCO 9 of 9
PD Joint Favorable Subst.