Connecticut 2025 Regular Session

Connecticut House Bill HB07151 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3		-	LCO 1 of 9
	3	+	LCO No. 5671 1 of 9
4	4
5		-	General Assembly ~~Substitute~~ Bill No. 7151
	5	+	General Assembly Raised Bill No. 7151
6	6		January Session, 2025
	7	+	LCO No. 5671
7	8
	9	+
	10	+	Referred to Committee on PLANNING AND DEVELOPMENT
	11	+
	12	+
	13	+	Introduced by:
	14	+	(PD)
8	15
9	16
10	17
11	18
12	19		AN ACT REQUIRING THE OFFICE OF POLICY AND MANAGEMENT
13	20		TO PROVIDE TECHNICAL ASSISTANCE TO CERTAIN
14	21		MUNICIPALITIES.
15	22		Be it enacted by the Senate and House of Representatives in General
16	23		Assembly convened:
17	24
18	25		Section 1. Section 4-66l of the general statutes is repealed and the 1
19	26		following is substituted in lieu thereof (Effective October 1, 2025): 2
20	27		(a) For the purposes of this section: 3
21	28		(1) "FY 15 mill rate" means the mill rate a municipality used during 4
22	29		the fiscal year ending June 30, 2015; 5
23	30		(2) "Mill rate" means, unless otherwise specified, the mill rate a 6
24	31		municipality uses to calculate tax bills for motor vehicles; 7
25	32		(3) "Municipality" means any town, city, consolidated town and city 8
26	33		or consolidated town and borough; 9
27	34		(4) "Municipal spending" means: 10
28	35		T1
29	36		Municipal Municipal
30		-	T2
31		-	spending for spending for
	37	+	Raised Bill No. 7151
	38	+
	39	+
	40	+
	41	+	LCO No. 5671 2 of 9
	42	+
	43	+	T2 spending for spending for
32	44		T3
33	45		the fiscal year – the fiscal year
34	46		T4
35		-	prior to the two years Substitute Bill No. 7151
36		-
37		-
38		-	LCO 2 of 9
39		-
	47	+	prior to the two years
40	48		T5
41	49		current fiscal prior to the
42	50		T6
43	51		year current year
44	52		T7 _______________________________ X 100 = Municipal spending;
45	53		T8
46	54		Municipal spending for the fiscal
47	55		T9
48	56		year two years prior to the
49		-	T10
50		-	current year
	57	+	T10 current year
51	58
52	59		"Municipal spending" does not include expenditures for debt service, 11
53	60		special education, implementation of court orders or arbitration awards, 12
54	61		expenditures associated with a major disaster or emergency declaration 13
55	62		by the President of the United States, a disaster emergency declaration 14
56	63		issued by the Governor pursuant to chapter 517 or any disbursement 15
57	64		made to a district pursuant to subsection (c) or (e) of this section, 16
58	65		budgeting for an audited deficit, nonrecurring grants, capital 17
59	66		expenditures or payments on unfunded pension liabilities. 18
60	67		(5) "Per capita distribution" means: 19
61		-	T11 Municipal population
	68	+	T11
	69	+	Municipal population
62	70
63	71		T12 _____________________ X Sales tax revenue = Per capita distribution;
64	72		T13
65	73		Total state population
66	74
67	75
68	76		(6) "Pro rata distribution" means: 20
69	77		T14
70	78		Municipal weighted
71	79
72	80		T15
73	81		mill rate
74	82
75	83		T16
76	84		calculation
77	85		T17 ___________________ X Sales tax revenue = Pro rata distribution;
78	86		T18
79	87		Sum of all municipal
80	88
81		-	T19 weighted mill rate
	89	+	T19
	90	+	weighted mill rate
82	91
83		-	T20
84		-	calculations combined
	92	+	Raised Bill No. 7151
	93	+
	94	+
	95	+
	96	+	LCO No. 5671 3 of 9
	97	+
	98	+	T20 calculations combined
85	99
86	100
87	101		(7) "Regional council of governments" means any such council 21
88		-	organized under the provisions of sections 4-124i to 4-124p, inclusive; 22 Substitute Bill No. 7151
89		-
90		-
91		-	LCO 3 of 9
92		-
	102	+	organized under the provisions of sections 4-124i to 4-124p, inclusive; 22
93	103		(8) "Municipal population" means the number of persons in a 23
94	104		municipality according to the most recent estimate of the Department of 24
95	105		Public Health; 25
96	106		(9) "Total state population" means the number of persons in this state 26
97	107		according to the most recent estimate published by the Department of 27
98	108		Public Health; 28
99	109		(10) "Weighted mill rate" means a municipality's FY 15 mill rate 29
100	110		divided by the average of all municipalities' FY 15 mill rate; 30
101	111		(11) "Weighted mill rate calculation" means per capita distribution 31
102	112		multiplied by a municipality's weighted mill rate; 32
103	113		(12) "Sales tax revenue" means the moneys in the account remaining 33
104	114		for distribution pursuant to subdivision (3) of subsection (b) of this 34
105	115		section; 35
106	116		(13) "District" means any district, as defined in section 7-324; [and] 36
107	117		(14) "Secretary" means the Secretary of the Office of Policy and 37
108	118		Management; 38
109	119		(15) "Adopted budget expenditures" means any expenditure from a 39
110	120		municipality's general fund or any nonbudgeted funds; and 40
111	121		(16) "Capital expenditure" means a nonrecurring capital expenditure 41
112	122		of one hundred thousand dollars or more. 42
113	123		(b) There is established an account to be known as the "municipal 43
114	124		revenue sharing account" which shall be a separate, nonlapsing account 44
115	125		within the General Fund. The account shall contain any moneys 45
	126	+	Raised Bill No. 7151
	127	+
	128	+
	129	+
	130	+	LCO No. 5671 4 of 9
	131	+
116	132		required by law to be deposited in the account. The secretary shall set 46
117	133		aside and ensure availability of moneys in the account in the following 47
118	134		order of priority and shall transfer or disburse such moneys as follows: 48
119	135		(1) For the fiscal years ending June 30, 2022, and June 30, 2023, 49
120		-	moneys sufficient to make motor vehicle property tax grants payable to 50 Substitute Bill No. 7151
121		-
122		-
123		-	LCO 4 of 9
124		-
	136	+	moneys sufficient to make motor vehicle property tax grants payable to 50
125	137		municipalities pursuant to subsection (c) of this section shall be 51
126	138		expended not later than August first annually by the secretary; 52
127	139		(2) For the fiscal years ending June 30, 2022, and June 30, 2023, 53
128	140		moneys sufficient to make the grants payable pursuant to subsection (d) 54
129	141		of section 12-18b, subdivisions (1) and (3) of subsection (e) of section 12-55
130	142		18b, subsection (b) of section 12-19b and subsections (b) and (c) of 56
131	143		section 12-20b shall be expended by the secretary; and 57
132	144		(3) For the fiscal years ending June 30, 2022, and June 30, 2023, 58
133	145		moneys in the account remaining shall be expended annually by the 59
134	146		secretary for the purposes of the municipal revenue sharing grants 60
135	147		established pursuant to subsection (d) of this section. Any such moneys 61
136	148		deposited in the account for municipal revenue sharing grants, 62
137	149		including moneys accrued to the account during each fiscal year but 63
138	150		received after the end of such fiscal year, shall be distributed to 64
139	151		municipalities not later than October first following the end of each 65
140	152		fiscal year. Any municipality may apply to the Office of Policy and 66
141	153		Management on or after July first for early disbursement of a portion of 67
142	154		such grant. The Office of Policy and Management may approve such an 68
143	155		application if it finds that early disbursement is required in order for a 69
144	156		municipality to meet its cash flow needs. No early disbursement 70
145	157		approved by said office may be issued later than September thirtieth. 71
146	158		(c) (1) For the fiscal year ending June 30, 2022, motor vehicle property 72
147	159		tax grants to municipalities that impose mill rates on real property and 73
148	160		personal property other than motor vehicles greater than 45 mills or 74
149	161		that, when combined with the mill rate of any district located within the 75
150	162		municipality, impose mill rates greater than 45 mills, shall be made in 76
	163	+	Raised Bill No. 7151
	164	+
	165	+
	166	+
	167	+	LCO No. 5671 5 of 9
	168	+
151	169		an amount equal to the difference between the amount of property taxes 77
152	170		levied by the municipality and any district located within the 78
153	171		municipality on motor vehicles for the assessment year commencing 79
154	172		October 1, 2017, and the amount such levy would have been if the mill 80
155	173		rate on motor vehicles for said assessment year was equal to the mill 81
156	174		rate imposed by such municipality and any district located within the 82
157		-	municipality on real property and personal property other than motor 83 Substitute Bill No. 7151
158		-
159		-
160		-	LCO 5 of 9
161		-
	175	+	municipality on real property and personal property other than motor 83
162	176		vehicles. 84
163	177		(2) Not later than fifteen calendar days after receiving a property tax 85
164	178		grant pursuant to this section, the municipality shall disburse to any 86
165	179		district located within the municipality the amount of any such property 87
166	180		tax grant that is attributable to the district. 88
167	181		(3) For the fiscal year ending June 30, 2023, and each fiscal year 89
168	182		thereafter, motor vehicle property tax grants shall be made to: 90
169	183		(A) Municipalities that imposed mill rates greater than 32.46 mills on 91
170	184		real property and personal property other than motor vehicles for the 92
171	185		preceding fiscal year, in an amount equal to the difference between (i) 93
172	186		the amount of property taxes the municipality would have levied on 94
173	187		motor vehicles for the preceding fiscal year if the mill rate imposed on 95
174	188		motor vehicles for such year was 32.46 mills, and (ii) the amount of 96
175	189		property taxes the municipality would have levied on motor vehicles 97
176	190		for the preceding fiscal year if the mill rate imposed on motor vehicles 98
177	191		for such year was equal to the mill rate imposed on real property and 99
178	192		personal property other than motor vehicles for such year; and 100
179	193		(B) Districts that imposed mill rates that, when combined with the 101
180	194		mill rate of the municipality in which the district is located, were greater 102
181	195		than 32.46 mills on real property and personal property other than 103
182	196		motor vehicles for the preceding fiscal year, in an amount equal to the 104
183	197		difference between (i) the amount of property taxes the district would 105
184	198		have levied on motor vehicles for the preceding fiscal year if the mill 106
185	199		rate imposed on motor vehicles for such year, when combined with the 107
	200	+	Raised Bill No. 7151
	201	+
	202	+
	203	+
	204	+	LCO No. 5671 6 of 9
	205	+
186	206		mill rate imposed on motor vehicles for such year by the municipality 108
187	207		in which the district is located, was 32.46 mills, and (ii) the amount of 109
188	208		property taxes the district would have levied on motor vehicles for the 110
189	209		preceding fiscal year if the mill rate imposed on motor vehicles for such 111
190	210		year, when combined with the mill rate imposed on motor vehicles for 112
191	211		such year by the municipality in which the district is located, was equal 113
192	212		to the mill rate imposed by the district on real property and personal 114
193		-	property other than motor vehicles for such year. 115 Substitute Bill No. 7151
194		-
195		-
196		-	LCO 6 of 9
197		-
	213	+	property other than motor vehicles for such year. 115
198	214		(d) For the fiscal year ending June 30, 2020, and each fiscal year 116
199	215		thereafter, each municipality shall receive a municipal revenue sharing 117
200	216		grant as follows: 118
201	217		(1) (A) A municipality having a mill rate at or above twenty-five shall 119
202	218		receive the per capita distribution or pro rata distribution, whichever is 120
203	219		higher for such municipality. 121
204	220		(B) Such grants shall be increased by a percentage calculated as 122
205	221		follows: 123
206	222		T21 Sum of per capita distribution amount
207		-	T22
208		-	for all municipalities having a mill rate
	223	+	T22 for all municipalities having a mill rate
209	224		T23
210	225		below twenty-five – pro rata distribution
211	226		T24
212	227		amount for all municipalities
213	228		T25
214	229		having a mill rate below twenty-five
215	230		T26
216	231		_______________________________________
217	232		T27
218	233		Sum of all grants to municipalities
219	234		T28
220	235		calculated pursuant to subparagraph (A)
221	236		T29
222	237		of subdivision (1) of this subsection.
223	238
224	239		(C) Notwithstanding the provisions of subparagraphs (A) and (B) of 124
225	240		this subdivision, Hartford shall receive not more than 5.2 per cent of the 125
226	241		municipal revenue sharing grants distributed pursuant to this 126
227	242		subsection; Bridgeport shall receive not more than 4.5 per cent of the 127
228	243		municipal revenue sharing grants distributed pursuant to this 128
	244	+	Raised Bill No. 7151
	245	+
	246	+
	247	+
	248	+	LCO No. 5671 7 of 9
	249	+
229	250		subsection; New Haven shall receive not more than 2.0 per cent of the 129
230	251		municipal revenue sharing grants distributed pursuant to this 130
231	252		subsection and Stamford shall receive not more than 2.8 per cent of the 131
232	253		equalization grants distributed pursuant to this subsection. Any excess 132
233	254		funds remaining after such reductions in payments to Hartford, 133
234	255		Bridgeport, New Haven and Stamford shall be distributed to all other 134
235	256		municipalities having a mill rate at or above twenty-five on a pro rata 135
236	257		basis according to the payment they receive pursuant to this 136
237		-	subdivision; and 137 Substitute Bill No. 7151
238		-
239		-
240		-	LCO 7 of 9
241		-
	258	+	subdivision; and 137
242	259		(2) A municipality having a mill rate below twenty-five shall receive 138
243	260		the per capita distribution or pro rata distribution, whichever is less for 139
244	261		such municipality. 140
245	262		(3) For the purposes of this subsection, "mill rate" means the mill rate 141
246	263		for real property and personal property other than motor vehicles. 142
247	264		(e) Except as provided in subsection (c) of this section, a municipality 143
248	265		may disburse any municipal revenue sharing grant funds to a district 144
249	266		within such municipality. 145
250		-	(f) (1) Except as provided in [subdivision] subdivisions (2) and (3) of 146
251		-	this subsection, for the fiscal year ending June 30, 2018, and each fiscal 147
252		-	year thereafter, the amount of the grant payable to a municipality in any 148
253		-	year in accordance with subsection (d) of this section shall be reduced if 149
254		-	such municipality increases its adopted budget expenditures for such 150
255		-	fiscal year above a cap equal to the amount of adopted budget 151
256		-	expenditures authorized for the previous fiscal year by 2.5 per cent or 152
257		-	more or the rate of inflation, whichever is greater. Such reduction shall 153
258		-	be in an amount equal to fifty cents for every dollar expended over the 154
259		-	cap set forth in this subsection. [For the purposes of this section, (A) 155
260		-	"municipal spending" does not include expenditures for debt service, 156
261		-	special education, implementation of court orders or arbitration awards, 157
262		-	expenditures associated with a major disaster or emergency declaration 158
263		-	by the President of the United States, a disaster emergency declaration 159
264		-	issued by the Governor pursuant to chapter 517 or any disbursement 160
265		-	made to a district pursuant to subsection (c) or (e) of this section, 161
266		-	budgeting for an audited deficit, nonrecurring grants, capital 162
267		-	expenditures or payments on unfunded pension liabilities, (B) "adopted 163
268		-	budget expenditures" includes expenditures from a municipality's 164
269		-	general fund and expenditures from any nonbudgeted funds, and (C) 165
270		-	"capital expenditure" means a nonrecurring capital expenditure of one 166
271		-	hundred thousand dollars or more.] Each municipality shall annually 167
272		-	certify to the secretary, on a form prescribed by [said] the secretary, 168
273		-	whether such municipality has exceeded the cap set forth in this 169
274		-	subsection, and if so, the amount by which the cap was exceeded by 170 Substitute Bill No. 7151
	267	+	(f) (1) Except as provided in subdivision (2) of this subsection, for the 146
	268	+	fiscal year ending June 30, 2018, and each fiscal year thereafter, the 147
	269	+	amount of the grant payable to a municipality in any year in accordance 148
	270	+	with subsection (d) of this section shall be reduced if such municipality 149
	271	+	increases its adopted budget expenditures for such fiscal year above a 150
	272	+	cap equal to the amount of adopted budget expenditures authorized for 151
	273	+	the previous fiscal year by 2.5 per cent or more or the rate of inflation, 152
	274	+	whichever is greater. Such reduction shall be in an amount equal to fifty 153
	275	+	cents for every dollar expended over the cap set forth in this subsection. 154
	276	+	[For the purposes of this section, (A) "municipal spending" does not 155
	277	+	include expenditures for debt service, special education, 156
	278	+	implementation of court orders or arbitration awards, expenditures 157
	279	+	associated with a major disaster or emergency declaration by the 158
	280	+	President of the United States, a disaster emergency declaration issued 159
	281	+	Raised Bill No. 7151
275	282
276	283
277		-	LCO 8 of 9
278	284
279		-	such municipality, except that in any fiscal year for which the secretary 171
280		-	publishes a list of payments made to municipalities by state agencies on 172
281		-	the Internet web site of the Office of Policy and Management, such 173
282		-	certification shall not be required. 174
	285	+	LCO No. 5671 8 of 9
	286	+
	287	+	by the Governor pursuant to chapter 517 or any disbursement made to 160
	288	+	a district pursuant to subsection (c) or (e) of this section, budgeting for 161
	289	+	an audited deficit, nonrecurring grants, capital expenditures or 162
	290	+	payments on unfunded pension liabilities, (B) "adopted budget 163
	291	+	expenditures" includes expenditures from a municipality's general fund 164
	292	+	and expenditures from any nonbudgeted funds, and (C) "capital 165
	293	+	expenditure" means a nonrecurring capital expenditure of one hundred 166
	294	+	thousand dollars or more.] Each municipality shall annually certify to 167
	295	+	the secretary, on a form prescribed by [said] the secretary, whether such 168
	296	+	municipality has exceeded the cap set forth in this subsection, and if so, 169
	297	+	the amount by which the cap was exceeded by such municipality, except 170
	298	+	that in any fiscal year for which the secretary publishes a list of 171
	299	+	payments made to municipalities by state agencies on the Internet web 172
	300	+	site of the Office of Policy and Management, such certification shall not 173
	301	+	be required. 174
283	302		(2) For the fiscal year ending June 30, 2018, and each fiscal year 175
284	303		thereafter, the amount of the grant payable to a municipality in any year 176
285	304		in accordance with subsection (d) of this section shall not be reduced in 177
286	305		the case of a municipality whose adopted budget expenditures exceed 178
287	306		the cap set forth in subdivision (1) of this subsection by an amount 179
288	307		proportionate to any increase to its municipal population from the 180
289	308		previous fiscal year, as determined by the secretary. 181
290		-	(3) For the fiscal year ending June 30, 2026, the amount of the grant 182
291		-	payable to a municipality in accordance with subsection (d) of this 183
292		-	section shall not be reduced in the case of a municipality whose adopted 184
293		-	budget expenditures exceed the cap set forth in subdivision (1) of this 185
294		-	subsection. 186
295		-	(g) For the fiscal years ending June 30, 2020, to June 30, 2023, 187
296		-	inclusive, the amount of the grant payable to a municipality in any year 188
297		-	in accordance with subsection (d) of this section shall be reduced 189
298		-	proportionately [in the event that] if the total of such grants in such year 190
299		-	exceeds the amount available for such grants in the municipal revenue 191
300		-	sharing account established pursuant to subsection (b) of this section. 192
301		-	(h) For the fiscal year ending June 30, 2025, and each fiscal year 193
302		-	thereafter, the secretary shall provide technical assistance upon request 194
303		-	to any municipality that receives a grant pursuant to subsection (c) of 195
304		-	this section for the purpose of assisting such municipality in 196
305		-	determining such municipality's eligibility for such grant in subsequent 197
306		-	fiscal years. 198
	309	+	(g) For the fiscal years ending June 30, 2020, to June 30, 2023, 182
	310	+	inclusive, the amount of the grant payable to a municipality in any year 183
	311	+	in accordance with subsection (d) of this section shall be reduced 184
	312	+	proportionately [in the event that] if the total of such grants in such year 185
	313	+	exceeds the amount available for such grants in the municipal revenue 186
	314	+	sharing account established pursuant to subsection (b) of this section. 187
	315	+	(h) For the fiscal year ending June 30, 2025, and each fiscal year 188
	316	+	thereafter, the secretary shall provide technical assistance upon request 189
	317	+	to any municipality that receives a grant pursuant to subsection (c) of 190
	318	+	this section for the purpose of assisting such municipality in 191
	319	+	Raised Bill No. 7151
	320	+
	321	+
	322	+
	323	+	LCO No. 5671 9 of 9
	324	+
	325	+	determining such municipality's eligibility for such grant in subsequent 192
	326	+	fiscal years. 193
307	327		This act shall take effect as follows and shall amend the following
308	328		sections:
309	329
310		-	Section 1 October 1, 2025 4-66l ~~Substitute Bill No. 7151~~
	330	+	Section 1 October 1, 2025 4-66l
311	331
	332	+	Statement of Purpose:
	333	+	To require the Office of Policy and Management to provide technical
	334	+	assistance to municipalities that receive grants for revenue lost as a
	335	+	result of the motor vehicle mill rate cap.
312	336
313		-	LCO 9 of 9
314		-
315		-
316		-	PD Joint Favorable Subst.
	337	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	338	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	339	+	underlined.]
317	340