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June 7, 2010

Beneficial legislation fell short in 2010

Numerous legislative proposals that would have assisted towns and cities in these difficult economic times were debated by the 2010 General Assembly, but fell short of passage.

Hotel Tax -- HB 5483 would have increased the State hotel tax by 3%, with 1% going to the "host" municipalities and 2% for regional cooperation. This bill passed the House, but was never taken up by the Senate.

Municipal Fees -HB 5255 would have given municipalities broader latitude to charge fees for services.

Streaming Grant Processes-- SB 362 would have required the Office of Policy and Management to review state grant programs to determine methods for streamlining grant processes and require the applicable agency to implement such methods.

Tax Increment Financing -- SB 110 would have allowed certain tax incremental financing programs to continue. Tax incremental financing has proven to be an effective alternative method to finance needed projects and the programs should be retained. Eliminating the sunsets currently included in the statutes would do just that.

Tax Abatements-- SB 326 would have allowed municipalities to fix the tax assessment on large-scale development projects for up to 14 years if the total value of the investment exceeds $30 million

Alternative Energy -- HB 5464 would have allowed municipalities, at local option, to exempt alternative energy projects from local building permit fees.



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