Southington OK's Tax Breaks For Rec Businesses

SOUTHINGTON, CT — Local leaders have approved a new tax abatement program for certain commercial operations in town, especially those specializing in recreation,.

The Southington Town Council Jan. 22 unanimously approved revising local regulations allowing for significant tax breaks to qualifying operations outside the town's so-called enterprise zone.

The tax benefits are for operations outside the specially designated enterprise zone in town, where most development takes place.

This, especially, applies to operations like sports/recreation instruction; theatre organizations; sports teams/clubs; amusement/theme parks; and skiing facilities.

At a public hearing before the vote, Southington Economic Development Director Lou Perillo outlined the particulars of the program.

He said the scale of improvements approved for tax breaks must be greater than $200,000.

According to Perillo, when a business like, say, Lake Compunce or Mount Southington can expand and improve, that brings in outsiders and that could benefit existing businesses.

Perillo said the town has had similar programs in the past and this is a resurrection of that.

These new tax breaks would be for operations conducting major improvements on their facilities and would amount to a 50 percent tax break from the town for five years

None of these tax breaks would be reimbursed by the state of Connecticut and all tax breaks are subject to town council approval of applications for them.

Currently, only operations and developments within the town's so-called "enterprise zone" are allowed.

Southington's enterprise zone tax benefits for manufacturers call for a five-year, 80 percent break on personal/real property taxes owed for five years.

Under this component, the town realizes a 50 percent reimbursement from the State of Connecticut.

In addition, commercial developers in the enterprise zone get a seven-year break on real estate taxes, with a 100 percent break the first two years, then a declining break scale of 50 to 10 percent over the next five years.

For the minutes of the Jan. 22 Southington Town Council meeting, click on this link.

From Jan. 18: 'Business Tax Break Expansion Eyed In Southington'