SB 1070 - Payment In Lieu of Taxes

• Establishes a new grant system for municipalities based on percentage of tax-exempt property on their grand lists, with top third receiving 40%, middle third receiving 33%, and remaining municipalities receiving 27% of foregone property taxes.

• Defines tax-exempt property to include state-owned real property, hospital facilities, private nonprofit institutions of higher learning, and other specified exempt categories, effective October 1, 2015.

• Allocates $20 million from the Mashantucket Pequot and Mohegan Fund for municipalities eligible for state grants in lieu of taxes, with additional distributions to 27 named municipalities ranging from $38,101 (Union) to $10,506,506 (Bridgeport).

• Adds special annual payments to three municipalities: Voluntown ($60,000 for state forests), Branford ($100,000 for Connecticut Hospice), and New London ($1,000,000 for U.S. Coast Guard Academy).

• Repeals former sections 12-19a, 12-20a, and 12-20b, consolidating and replacing the previous payment in lieu of taxes statutes with the new Section 1 framework.