HB 6655 Summary

• Establishes a municipal property tax levy cap of 2.5% of net grand list effective July 1, 2022; municipalities exceeding this limit must reduce levies by 15% annually until compliant.

• Allows municipalities below the cap to increase levies up to 102.5% of prior year limit plus growth from new property assessments; requires voter approval via referendum for amounts exceeding these increases.

• Authorizes municipalities to impose local taxes on income, goods, services, and other assets by ordinance with public notice, effective immediately upon passage.

• Creates state grants for municipalities entering regional service sharing agreements: 10% of education budget, 5% for police/fire/emergency services, and 2.5% for other services, funded from municipal revenue sharing account.

• Allows collective bargaining units to form coalition bargaining units to negotiate regional public services provision across multiple municipalities.