AN ACT CONCERNING THE USE OF THE MASHANTUCKET PEQUOT AND MOHEGAN FUND FOR PROPERTY TAX RELIEF.

AN ACT CONCERNING THE USE OF THE MASHANTUCKET PEQUOT AND MOHEGAN FUND FOR PROPERTY TAX RELIEF.

This bill requires any increase in Indian gaming revenue the state receives in any fiscal year over the amount of such revenue received in FY 09 to be transferred to the Mashantucket Pequot and Mohegan Fund for distribution to municipalities. It establishes a formula for distributing the additional revenue. The amounts the bill allocates are in addition to the Indian gaming revenue that must be deposited in the fund under current law. The bill does not change the formulas for distributing that revenue.

Starting in FY 10, the bill allocates to the Mashantucket Pequot and Mohegan Fund any increase in annual Indian gaming revenue the state receives under its agreement with the Indian tribes over the amount of such revenue deposited in the General Fund for FY 09. Current law requires all Indian gaming revenue to be deposited in the General Fund. The Mashantucket Pequot and Mohegan grant appropriation is then transferred to the Mashantucket Pequot and Mohegan Fund for distribution to municipalities. The bill does not change this basic transfer requirement.

The bill requires any increases in annual revenue to the fund to be distributed to municipalities as follows:

1. 33% for additional payments in lieu of taxes (PILOTs) for state-owned property, Indian reservation and trust land, and municipally owned airports;

2. 33% for additional PILOT payments for tax-exempt property owned by private colleges and hospitals; and

3. the remainder proportionately to municipalities based on their relative property wealth, according to the existing property tax relief formula used under current law to distribute $ 35 million from the fund.

Under the bill, no town can receive less than it received for FY 09, except, if total PILOT payments to municipalities in any year are more than are needed to reimburse municipalities at the levels required by law, 100% of the remaining revenue must be distributed according to the property tax relief formula.

Under current law, specified amounts of money in the Mashantucket Pequot and Mohegan Fund money are distributed to municipalities according to several formulas including the PILOT grant distribution and property tax relief formulas. Other amounts are distributed as flat grants to specified municipalities. The law also allocates amounts for minimum grants and other special circumstances.

Yea

Nay

(04/16/2009)