Budget & Taxes (Revenue · Economic Development)

This bill creates a new state fund called the municipal growth account to distribute payments to Connecticut towns and cities based on their local tax revenue growth. Starting in fiscal year 2031, municipalities will receive a dividend equal to 0.5% of their tax revenue from sales, wages, and business activity within their borders, provided this amount exceeds their 2026 baseline. The funds must be deposited into a municipal revenue stabilization fund and can only be used for municipal services or to lower local tax rates. The state retains a share of these dividends for projects where it provided capital to support economic growth, and the Office of Policy and Management will track and report these distributions annually.