Connecticut 2025 Regular Session

Connecticut Senate Bill SB01554 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	LCO No. 6965 1 of 4
4	4
5	5	General Assembly Raised Bill No. 1554
6	6	January Session, 2025
7	7	LCO No. 6965
8	8
9	9
10	10	Referred to Committee on FINANCE, REVENUE AND
11	11	BONDING
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13	13
14	14	Introduced by:
15	15	(FIN)
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20	20	AN ACT CONCERNING THE ELIMINATION OF THE PROPERTY TAX
21	21	ON MOTOR VEHICLES AND THE PROVISION OF REIMBURSEMENT
22	22	AND OTHER GRANTS TO MUNICIPALITIES.
23	23	Be it enacted by the Senate and House of Representatives in General
24	24	Assembly convened:
25	25
26	26	Section 1. (NEW) (Effective from passage) (a) Commencing in the fiscal 1
27	27	year ending June 30, 2028, and each fiscal year thereafter, the Treasurer 2
28	28	shall transfer revenue received by the state from estimated and final 3
29	29	payments of the personal income tax imposed under chapter 229 of the 4
30	30	general statutes and the affected business entity tax imposed under 5
31	31	section 12-699 of the general statutes, in an amount equal to the 6
32	32	difference between the final threshold amount calculated for the fiscal 7
33	33	year ending June 30, 2027, and the threshold amount under section 4-8
34	34	30a of the general statutes for each fiscal year thereafter, as adjusted. 9
35	35	Such amounts shall be deposited in the municipal offset vehicle expense 10
36	36	account established under subsection (c) of this section. 11
37	37	(b) Commencing in the fiscal year ending June 30, 2028, and each 12
38	38	fiscal year thereafter, whenever the Comptroller certifies through an 13
39	39	annual actuarial valuation for the prior fiscal year that there is a decrease 14
40	40	Raised Bill No. 1554
41	41
42	42
43	43
44	44	LCO No. 6965 2 of 4
45	45
46	46	in the necessary budgeted actuarially determined employer 15
47	47	contribution for the applicable fiscal year compared to the amount 16
48	48	determined from the actuarial valuation for the fiscal year ending two 17
49	49	fiscal years prior, the Comptroller shall transfer the amount of such 18
50	50	difference to the municipal offset vehicle expense account established 19
51	51	under subsection (c) of this section. 20
52	52	(c) There is established an account to be known as the "municipal 21
53	53	offset vehicle expense account", which shall be a separate, nonlapsing 22
54	54	account. The account shall contain any moneys required by law to be 23
55	55	deposited in the account. Moneys in the account shall be expended by 24
56	56	the Secretary of the Office of Policy and Management for the purpose of 25
57	57	phasing out the property tax on motor vehicles imposed by chapter 203 26
58	58	of the general statutes, disbursing grants to municipalities for the 27
59	59	revenue loss associated with such phase-out and paying grants to 28
60	60	municipalities pursuant to subsection (e) of this section. 29
61	61	(d) The Secretary of the Office of Policy and Management shall begin 30
62	62	the process of reducing the property tax on motor vehicles by 31
63	63	exempting, commencing in the fiscal year ending June 30, 2029, a 32
64	64	portion of the assessed value of a motor vehicle each fiscal year until the 33
65	65	property tax on motor vehicles is reduced to zero and disbursing grants 34
66	66	to municipalities as reimbursement for the revenue loss resulting from 35
67	67	such exempted portion. The secretary shall calculate, for the fiscal year 36
68	68	ending June 30, 2029, and each fiscal year thereafter, (1) the amount of 37
69	69	the portion of the assessed value of a motor vehicle that shall be 38
70	70	exempted, based on the amount projected to be available for 39
71	71	disbursement in the municipal offset vehicle expense account 40
72	72	established under subsection (c) of this section, and (2) the amounts of 41
73	73	the reimbursement grants to be disbursed to each municipality. The 42
74	74	secretary shall notify the chief executive officer of each municipality not 43
75	75	later than September 1, 2027, and each September first thereafter, of the 44
76	76	exemption amount and the grant amount payable to each municipality 45
77	77	pursuant to this subsection. 46
78	78	Raised Bill No. 1554
79	79
80	80
81	81
82	82	LCO No. 6965 3 of 4
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84	84	(e) (1) On or before the date the property tax on motor vehicles is 47
85	85	reduced to zero pursuant to subsection (d) of this section, the Secretary 48
86	86	of the Office of Policy and Management shall calculate and post on the 49
87	87	Office of Policy and Management's Internet web site a municipal needs 50
88	88	capacity gap metric for each municipality. Such metric shall be 51
89	89	calculated in accordance with the methodologies used in the May, 2015 52
90	90	New England Public Policy Center Research Report 15-1. 53
91	91	(2) Not later than July fifteenth of the fiscal year in which the property 54
92	92	tax on motor vehicles is reduced to zero pursuant to subsection (d) of 55
93	93	this section, the secretary shall determine the formulae and calculations, 56
94	94	based on the amount available for disbursement in the municipal offset 57
95	95	vehicle expense account established under subsection (c) of this section, 58
96	96	for grants to be paid to municipalities as follows: (A) Fifty per cent of 59
97	97	such amount shall be distributed to municipalities for needs capacity 60
98	98	grants based on a municipality's municipal needs capacity gap metric; 61
99	99	and (B) fifty per cent of such amount shall be distributed to 62
100	100	municipalities on a per capita basis, as determined by the most recent 63
101	101	federal decennial census. 64
102	102	(3) Not later than August first immediately following such July 65
103	103	fifteenth, the secretary shall present such formulae and calculations and 66
104	104	the projected amounts each municipality would receive under 67
105	105	subparagraphs (A) and (B) of subdivision (2) of this subsection to the 68
106	106	joint standing committees of the General Assembly having cognizance 69
107	107	of matters relating to finance, revenue and bonding and local 70
108	108	governments. 71
109	109	(4) Not later than September first of each subsequent year, the 72
110	110	secretary shall calculate the amount of each municipality's grants under 73
111	111	subdivision (2) of this subsection and notify the chief executive officer 74
112	112	of each municipality of the grant amounts payable to such municipality 75
113	113	pursuant to said subdivision. 76
114	114	(f) Commencing in the fiscal year ending June 30, 2028, the Secretary 77
115	115	Raised Bill No. 1554
116	116
117	117
118	118
119	119	LCO No. 6965 4 of 4
120	120
121	121	of the Office of Policy and Management shall submit an annual report 78
122	122	to the General Assembly, in accordance with the provisions of section 79
123	123	11-4a of the general statutes, of a summary of the following, as 80
124	124	applicable: (1) The amount in the municipal offset vehicle expense 81
125	125	account established under subsection (c) of this section; (2) for the 82
126	126	applicable fiscal year, the amount of the portion of the assessed value of 83
127	127	a motor vehicle exempted pursuant to subsection (d) of this section and 84
128	128	the amounts of the reimbursement grant provided to each municipality 85
129	129	due to such exemption; (3) information and data related to the grants 86
130	130	under subsection (e) of this section; and (4) any other information the 87
131	131	secretary deems relevant or necessary to any grants disbursed pursuant 88
132	132	to this section. 89
133	133	This act shall take effect as follows and shall amend the following
134	134	sections:
135	135
136	136	Section 1 from passage New section
137	137
138	138	Statement of Purpose:
139	139	To phase out and eliminate the property tax on motor vehicles through
140	140	the dedication of certain revenue and savings for reimbursement and
141	141	other grants to municipalities.
142	142
143	143	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
144	144	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
145	145	underlined.]
146	146