The bill under consideration, Substitute House Bill No. 5478, proposes amendments to the existing land value taxation pilot program. The bill seeks to expand the number of municipalities that can participate in the pilot program from three to five. It also involves a change in the deadline for municipalities to submit their land value taxation plans to the legislature, extending it from December 31, 2020, to December 31, 2027. The pilot program allows municipalities to assess land and buildings on that land separately and to establish separate mill rates for land and buildings, with the expectation that municipalities would participate only if it results in additional revenue.

The bill outlines the process for municipalities to apply for the pilot program, including the establishment of a committee to prepare the land value taxation plan, which must meet specific criteria. The committee must consist of representatives from the legislative body or board of selectmen, the business community, a land use attorney, and relevant taxpayers and stakeholders. The plan must provide a process for implementing differentiated tax rates, designate geographic areas for the application of these rates, and identify legal and administrative issues affecting the plan's implementation. Municipalities that have previously participated in the pilot program are ineligible for subsequent selection. The bill is set to take effect on October 1, 2024.

Statutes affected:
Raised Bill: 12-63h
PD Joint Favorable Substitute: 12-63h
File No. 422: 12-63h