Hartford Business Journal

www.HartfordBusiness.com June 6, 2016 • Hartford Business Journal 5 REPORTER'S NOTEBOOK Unusual property-tax experiment given new life After stalling in the legislature, a proposal to expand an unusual property-tax pilot pro- gram was given new life in special session last month when lawmakers inserted the bill's language into the budget implementer bill. Assuming Gov. Dannel P. Malloy signs the budget into law, as many as five munici- palities that successfully apply to the Office of Policy and Management will be permitted to assess real and personal property taxes on all commercial parcels within their bor- ders based on the net profits of a building's business occupants, rather than by the fair market value of the property itself. However, it's unlikely any community will get that far. Property owners and/or tenants and government officials must first agree to the arrangement. The public act doesn't allow local governments to change their property taxation method unilaterally. The pilot program was first created in 2014, but capped at three the number of par- cels each town could tax based on net profits. The latest legislation removes the cap entirely. Sen. John Fonfara (D-Hartford), co- chair of the Finance, Revenue and Bonding Committee, pushed for the original law two years ago, as well as its expansion this year. In attempting to open up the program to more properties, Fonfara got a boost from the support of Hartford Mayor Luke Bronin, who told the Hartford Business Journal in March that he saw the program as a poten- tial way for Hartford to incentivize econom- ic development and business formation. The nonpartisan Office of Fiscal Analysis has said it presumes no municipality would enter into such an arrangement unless it brought in more tax revenue, but it remains to be seen if local governments would use the program as a way to help some companies and property owners pay less taxes. To date, no town has applied for the pilot program. But that could change come Octo- ber, when the cap on the number of eligible parcels per town is lifted. Shipman & Goodwin Managing Partner Alan Lieberman, who represents commer- cial taxpayers, said several months ago that he was against the expansion of the pilot, which he likened to a municipal income tax. Meanwhile, a national tax expert, Carl Davis of the nonpartisan Institute on Taxation and Economic Policy, said he was unaware of any similar programs in other states, and warned that if the pilot is expanded beyond five towns, it could pit cities and towns against one another and promote business poaching. – Matt Pilon CT studies online lottery sales During this year's debate to legalize and regulate online fantasy sports, Connecti- cut Lottery Corp. President and CEO Anne Noble submitted testimony urging legisla- tors to allow her organization to offer its games online as well. It appears the lottery is getting a step closer to doing so. State lawmakers have asked the state lottery, in consultation with the attorney general, to study the prospects of offering its games online. Specifically, the lottery must determine if it can develop a secure system that offers a positive customer expe- rience and boosts lottery sales. The study must also examine the effect online lottery sales would have on the state's agreements with the Mashantucket Pequot and Mohe- gan tribes, which have exclusive rights to operate casinos in the state in exchange for ceding 25 percent of their slots revenues. Lawmakers this session decided not to legalize and regulate online fantasy sports, which was projected to bring in millions in tax revenues, because Attorney General George Jepsen raised concerns that it could jeopardize revenue-sharing agreements with the tribes. A study doesn't mean the lottery will be selling games online anytime soon, but it's typically a first step in the process of legisla- tive action. – Greg Bordonaro PDS has been meeting the needs of the construction industry since 1965. Our dedicated team of design and construction professionals welcomes the challenge of serving its past and future customers on their most demanding projects. Cornerstone Church | Cheshire, CT PDS served in the role as Construction Manager for this 18,000 square foot pre-engineered church facility addition to their existing building. The project included a lobby, commons pub, café, multi-functional state of the art sanctuary, children's center, restrooms and a children's worship area. Minor interior renovations also occurred to the existing building. Combined Project Size: 18,000 SF 107 Old Windsor Road, Bloomfield, CT 06002 (860) 242-8586 | Fax (860) 242-8587 www.pdsec.com DESIGN BUILDERS • GENERAL CONTRACTORS • CONSTRUCTION MANAGERS SPOTLIGHT ON: Religious PDS ENGINEERING & CONSTRUCTION, INC. THINK • PLAN • BUILD State Sen. John Fonfara (D-Hartford). P H O T O | C O N T R I B U T E D

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