Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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LCO No.: 9318

File Copy No.: 940

House Calendar No.: 309

Senate Calendar No.: 688

OFA Fiscal Note

State Impact:

Agency Affected


FY 10 $

FY 11 $

Department of Revenue Services

GF - Eliminates Revenue Loss in Bill

See Below

See Below

Department of Revenue Services

GF - Eliminates Cost in Bill

See Below

See Below

Note: GF=General Fund

Municipal Impact:



FY 10 $

FY 11 $

Various Municipalities

Eliminates Revenue Gain in Bill

See Below

See Below


The amendment removes section 2 of the bill which requires the Office of Policy and Management (OPM) to approve an Economic Development District (EDD) plan within 30 days of receiving the plan. This will potentially reduce the revenue gain to municipalities to the extent this provision would have increased the number of EDD plans approved by OPM.

The amendment removes section 4 of the bill which requires the Department of Revenue Services (DRS) to enter into a memorandum of understanding (MOU) with each municipality participating in an approved agreement to segregate a portion of the sales and use tax derived in the participating municipalities. This will forgo a potentially significant annual revenue loss to the General Fund from the sales and use tax and forgo an equal revenue gain to municipalities participating in these agreements.

In addition removing Section 4 of the bill eliminates a significant cost to DRS to implement changes to the way the sales and use tax is collected.

The amendment removes Section 6 of the bill which allows municipalities that are parties to an approved agreement to adopt an ordinance to impose a 1% tax on the gross receipts from sales by any hotel or lodging house located within the municipality's boundaries. This removes a total potential revenue gain to all municipalities of $6 million to $6.5 million per year beginning in FY 10.

In addition removing Section 6 of the bill will eliminates a cost to DRS of approximately $430, 000 in FY 10.

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. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.