CT HB05480

Regional planning organizations may establish a sales tax on retailers within their region, effective July 1, 2010, upon approval by the organization's governing body.

The governing body determines which sales are subject to the tax, sets the tax rate, and decides how proceeds are distributed to the region or member municipalities.

Regional planning organizations must conduct annual reviews of the tax beginning one year after implementation; failure to amend or approve results in expiration at the end of the current calendar quarter or 30 days after review, whichever is later.

The Department of Revenue Services collects and administers the regional sales tax like existing state taxes, segregates the revenue, and remits it quarterly to the organization starting the quarter after implementation.

Regional planning organizations may use tax revenue for capital expenditures, distribution to municipalities, or any regular or special purpose outlined in the organization's annual budget.