Connecticut Senate Bill SB01137

Connecticut 2019 Regular Session

• Introduced: 4/24/19
• Refer: 4/24/19

Caption

An Act Concerning Deposits In Lieu Of Taxes.

Impact

The bill mandates that certain tax-exempt organizations, which own significant properties, contribute 25% of the property tax they would have otherwise paid into the community development account. This funding mechanism will bolster community development initiatives within municipalities classified as distressed, further allowing these designated credit unions to support programs benefiting low-income communities.

Summary

SB01137, titled 'An Act Concerning Deposits In Lieu Of Taxes', introduces a framework for collecting fees from tax-exempt entities such as colleges and hospitals based on property tax valuations. The collected fees will fund a community development account aimed at supporting community revitalization projects within distressed municipalities. This act seeks to enhance financial services accessibility and promote community development programs through designated community development credit unions.

Contention

While the proposed bill aims to improve community welfare, it has sparked debate regarding the financial burden it may place on tax-exempt entities already contributing through other means. Some stakeholders argue that such fees may discourage philanthropic initiatives by non-profit organizations, potentially hindering their contributions to community welfare. Conversely, supporters contend that these fees are a necessary investment in local infrastructure and services.