OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http: //www.cga.ct.gov/ofa

HB-7282

AN ACT CONCERNING PROPERTY TAX DELINQUENCIES OF TELECOMMUNICATIONS COMPANIES.

AMENDMENT

LCO No.: 9398

File Copy No.: 556

House Calendar No.: 469

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 08 $

FY 09 $

Treasurer, Debt Serv.

GF - Cost

See Below

See Below

Department of Revenue Services

GF - Revenue Loss

Minimal

Minimal

Note: GF=General Fund

Municipal Impact:

Municipalities

Effect

All Municipalities

See Below

Explanation

The amendment does the following:

Section 501 adds activities related to the planning of a municipal broadband network to the list of purposes for which General Obligation (GO) bond funds can be used under the Local Capital Improvement Program (LoCIP) . To the degree that this causes GO bond funds to be expended more rapidly than they otherwise would have been, there will be an increase in debt service costs in future years. The unallocated balance for LoCIP as of 6/6/07 is $31.1 million.

Section 502 establishes the nine-member Broadband Internet Coordinating Council that is required to: (1) monitor trends and developments in the state's efforts to develop a statewide, world-class communications infrastructure and (2) issue any reports it deems necessary to the Energy and Technology Committee. It is anticipated that (1) the Secretary of the Office of Policy and Management or his designee and (2) the chairperson of the Public Utilities Control Authority or his designee, can attend meetings of the Council within normal budgetary resources and will not result in a fiscal impact to either agency.

Section 503 specifies that, for purposes of the existing heavy equipment rental surcharge, the rental period for the equipment runs from the date the machinery is rented to the date it is returned to the rental company. The state imposes a 1.5% surcharge on the total cost of renting heavy construction, mining, and forestry equipment without an operator for 30 days or less. This will result in minimal General Fund revenue loss.

Section 504 and 505 provide property tax exemptions for (1) real property owned by a tax exempt organization is eligible for a property tax exemption even if it is used by another tax exempt organization and (2) real property and equipment owned by a religious organization that is used exclusively as a daycare facility. This will result in a loss of net grand list (assessed value less exemptions permitted under current state law) and will likely necessitate an increase in a municipality's mill rate to offset the loss of taxable property.

Section 506 expands a municipal option property tax exemption for real or personal property leased to a charitable, religious or nonprofit organization. For towns that choose to enact this exemption, there will be a loss of net grand list and that will likely necessitate an increase in the municipality's mill rate to offset the loss of taxable property.

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose.