OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
EMERGENCY CERTIFICATION
HB-6516
AN ACT MITIGATING ADVERSE TAX CONSEQUENCES
RESULTING FROM EMPLOYEES WORKING REMOTELY DURING
COVID-19, AND CONCERNING THE REMOVAL OF LIENS ON THE
PROPERTY OF PUBLIC ASSISTANCE BENEFICIARIES AND A
THREE-TIERED GRANTS IN LIEU OF TAXES PROGRAM.
OFA Fiscal Note
State Impact: See Below
Municipal Impact: See Below
Explanation
The bill makes a variety of changes as described by section below:
Section 1 clarifies that, for the 2020 income year only, any
Connecticut resident paying nonresident income taxes to certain other
states while working remotely during the COVID-19 pandemic is
allowed a credit against their Connecticut personal income tax for such
nonresident taxes paid. If the credit did not apply, Connecticut
residents would owe approximately $300 million in additional
personal income tax payments for the 2020 income year.
Sections 2 to 4 will result in an annual General Fund revenue loss of
up to $12 million beginning in FY 22 due to limiting the state's ability
to recover cash assistance and medical assistance from a lien on the
real property of a program beneficiary, unless the state is required to
recover such assistance under federal law. The bill requires the state to
release any previously filed certificates or liens as of July 1, 2021.
Primary Analyst: DD 2/24/21
Contributing Analyst(s):
2021HB-06516-R00-FN.docx Page 2 of 2
Sections 5 to 8 establish a new method of proportionately
distributing the State Property PILOT and College & Hospital PILOT
grants that shifts funding towards municipalities with low property
wealth. The bill specifies that, if appropriations are insufficient to fully
fund the PILOT grants, then municipalities must receive a certain
percentage of their fully funded amounts, based on a tiered
reimbursement system that sets higher reimbursement rates for lower
property wealth towns.
If appropriations are higher or lower than the amount necessary to
fund the tiered reimbursement system established by the bill, then
grants are increased or reduced based on the amount towns receive
under that system. This is provided 1) no municipality receives less
than the amount they received in FY 21, and 2) the City of Bridgeport
receives at least $5 million.
The bill also specifies the Municipal Revenue Sharing Account as
the funding source for the tiered payments. This replaces the PILOT
funding that is currently intended to be paid from the account and
changes the distribution of payments from the account.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation. Section 1 has no fiscal
impact in the out years as it relates to a single income year.
The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly,
solely for the purposes of information, summarization and explanation and does not represent the intent of the
General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety
of informational sources, including the analysts professional knowledge. Whenever applicable, agency data is
consulted as part of the analysis, however final products do not necessarily reflect an assessment from any
specific department.


Statutes affected:
New Bill: 4-66l, 15-31g, 12-18c
Public Act No. 21-3: 12-18b, 4-66l, 15-31g, 12-18c