Municipal Revenue Sharing Account

The legislature enacted the municipal revenue sharing program in 2015 by diverting a portion of sales tax revenue to a dedicated account to fund four new grant programs for municipalities.

MUNICIPAL REVENUE SHARING GRANT – GENERAL FUND 
Municipal Revenue Sharing Grants from the General Fund are historically made pursuant to payment lists in the budget act for each biennium. For FY 2022 and FY 2023, a payment list was established in Section 35 of S.A. 21-15 that maintains the same funding that each of the five grantees received in FY 2021.

MUNICIPAL REVENUE SHARING GRANT – MRSA

Pursuant to subsection (b)(4) of section 4-66l as amended by P.A. 21-2, J.S.S. and section 448(b)(2) of P.A. 21-2, J.S.S., after the requirements in subsections (a) and (b) of section 448 of P.A. 21-2, J.S.S. are satisfied, moneys remaining in the Municipal Revenue Sharing Account (MRSA) will be distributed to municipalities according to the formula in subsection (e) of section 4-66l as amended by P.A. 21-2, J.S.S.

 

Each municipality’s grant is calculated based on attributes including mill rate and population. Applicable excess revenues deposited into MRSA between July 1 and September 30 must be distributed to municipalities on the following January 31, and such revenues deposited into the account between October 1 and June 30 must be distributed to municipalities on the following October 1.

 

Section 93 of P.A. 22-118 modified the program for fiscal years 2022 and 2023 to include accrued funds to the account and payments not later than October 1st. 

 

MUNICIPAL TRANSITION GRANT (Motor Vehicle Property Tax Grant) 

C.G.S. Section 4-66l provides for motor vehicle property tax grants. Pursuant to C.G.S. Section 12-71e, amended by PA 22-118 Section 414, municipalities may not impose mill rates higher than 32.46 mills on motor vehicles for the assessment year commencing October 1, 2021 (Fiscal Year 22-23). No district or borough may set a motor vehicle mill rate that if combined with the motor vehicle mill rate of the municipality would result in a combined rate above 32.46. The municipal transition grant reimburses municipalities and districts for the foregone tax revenue resulting from this motor vehicle property tax cap.

Grants are paid pursuant to a formula pursuant to Subsection (c) of Section 4-66l as amended by P.A. 21-118. Grants are paid by August 1st.

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For further information: Nikki Sow at 860.418.6278 or nikki.sow@ct.gov