|Posted:||April 10, 2019 01:29 PM|
|From:||Senator John DiSanto|
|To:||All Senate members|
|Subject:||State Grant Support Program for Localities Impacted by Power Plant Closures|
|I will soon introduce legislation enabling political subdivisions to apply for state grants to mitigate the impact of reduced property taxes and payments in lieu of taxes as a result of a power plant closing within its jurisdiction.
Under my proposal, the Department of Community and Economic Development will make funding awards to localities that experience a reduction of at least 20% in tax payments received by a power plant. Eligible applicants will be able to receive financial relief on a temporary basis for a total of four years and may receive an initial award up to 80% of the demonstrated tax loss in year 1, 60% in year 2, 40% in year 3, and 20% in year 4.
When a power plant closes, there is significant disruption to the local community’s economy and tax base as these facilities are both major employers and taxpayers. By offering temporary relief for school districts and municipalities, we give local stakeholders additional time to replace tax shortfalls and help them transition while lessening the immediate impact on schools and essential public services.
Please join me in cosponsoring this important legislation.
Introduced as SB704