AN ACT CONCERNING A MUNICIPAL OPTION TO LEVY LOCAL TAXES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (Effective October 1, 2008) (a) Any municipality, by vote of its legislative body, may impose a local (1) sales tax on any combination of sales and services within such municipality's borders, provided such sales and services are subject to sales tax under state law, (2) property tax, on items of personal or real property that are not specifically exempted by state law, or (3) income tax, as a percentage of the amount paid by residents of such municipality on each resident's state personal income tax return.

(b) The Commissioner of Revenue Services shall develop guidelines to be used by municipalities in adopting an ordinance pursuant to this section. The commissioner shall provide a copy of the guidelines to each municipality.

Statement of Purpose:

To allow municipalities to adopt local ordinances imposing sales, property or income taxes.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]