May 26, 2009
REP. GENGA HAILS SMART GROWTH LEGISLATION
Regionalism and Sales Tax Sharing Provides New Revenue for Towns
State Representative Henry Genga (D-East Hartford) joined with a majority of Connecticut House of Representative members last week to support legislation that more efficiently delivers government services and save taxpayers money. The legislation gives municipalities the ability to implement cost saving measures and offers real property tax reform through voluntary regional cooperation incentives.
House Bill 6585, An Act Concerning Regionalism, includes a provision to return a portion of the sales tax to towns as an incentive for participating in regional initiatives. The state sales tax currently generates about 3.5 billion dollars annually. Beginning in 2011, the legislation would return a portion of the state sales tax revenue generated within participating regions.
"I am pleased to see this legislation passing the House and moving forward," Rep. Genga said. "The policy options that are being presented give choices to towns through incentives, but do not mandate implementation," Genga continued. "This allows municipalities to opt in if they wish, but does not impose any changes - this is the best approach for our state."
In addition, towns that agree to participate in more efficient, streamlined government and education operations would be able to access federal economic development funds for the first time, and by sharing property tax revenues generated from large new developments. These new revenue streams would offer permanent property tax relief to participating towns.
The bill now heads to the Senate for consideration.
In addition to the regionalism initiative, the General Assembly has additional pending legislation to overhaul Connecticut's long-range planning, better coordinate state programs for open space and Brownfield remediation, and streamline the approval process for new development proposals.
Rep. Genga is serving his third term representing the 10th District. He is Assistant Majority Leader, and a member of the Appropriations, Education and Energy and Technology committees.