General Assembly Substitute Bill No. 5405
February Session, 2012 *_____HB05405PD____032612____*
General Assembly
Substitute Bill No. 5405
February Session, 2012
*_____HB05405PD____032612____*
AN ACT ESTABLISHING A STATE-WIDE MILL RATE FOR MOTOR VEHICLES AND AMENDING THE DEFINITION OF ANTIQUE, RARE OR SPECIAL INTEREST MOTOR VEHICLES.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective July 1, 2012, and applicable to assessment years commencing on or after October 1, 2012) (a) For purposes of this section:
(1) "Discrepancy amount" means the amount that is equal to the difference of (A) the amount of tax revenue actually collected under the state-wide mill rate by a municipality with a local mill rate that is higher than the state-wide mill rate, as certified to the Secretary of the Office of Policy and Management pursuant to subsection (c) of this section, and (B) the amount of tax revenue such municipality would have collected under the local mill rate, assuming the same collection rate as the actual collection rate, as certified to the Secretary of the Office of Policy and Management pursuant to subsection (c) of this section;
(2) "State-wide mill rate" means the median of the local mill rates in all municipalities of the state for the assessment year in which such state-wide mill rate is calculated; and
(3) "Excess collection amount" means an amount that is equal to the difference of (A) the amount of tax revenue actually collected under the state-wide mill rate by a municipality with a local mill rate that is lower than the state-wide mill rate, as certified to the Secretary of the Office of Policy and Management pursuant to subsection (c) of this section, and (B) the amount of tax revenue such municipality would have collected under the local mill rate, assuming the same collection rate as the actual collection rate, as certified to the Secretary of the Office of Policy and Management pursuant to subsection (c) of this section.
(b) On or before September 1, 2012, and each September first thereafter, the Secretary of the Office of Policy and Management shall calculate the state-wide mill rate for the purpose of levying property tax on motor vehicles subject to taxation under chapter 203 of the general statutes. The secretary shall notify the assessors of each municipality of the state-wide mill rate. For assessment years commencing on or after October 1, 2012, the assessor of each municipality shall calculate the amount of motor vehicle property tax due from each taxpayer based on the state-wide mill rate determined by said secretary.
(c) Effective for fiscal years commencing on or after July 1, 2013, the tax collector of each municipality shall collect the property tax on motor vehicles and, not later than the fifteenth day of October, January, April and July, (1) remit any excess collection amount realized in the preceding calendar quarter to the Commissioner of Revenue Services for deposit into the motor vehicle property tax account established under section 2 of this act, and (2) certify to the Secretary of the Office of Policy and Management, on a form prescribed by said secretary, the amount of tax revenue that such municipality (A) would have collected in the preceding calendar quarter with respect to the property tax on motor vehicles under sections 12-71 and 12-71b of the general statutes except for the application of the state-wide mill rate calculated by said secretary pursuant to this section, and (B) actually collected with respect to such property tax in the preceding calendar quarter under the state-wide mill rate, together with such supporting information as said secretary shall require. For the purposes of calculating the amount a municipality would have collected except for the application of the state-wide mill rate, the tax collector shall assume that the municipality would have realized the same tax collection rate as the actual tax collection rate in the preceding calendar quarter. Such remittance and certification shall be made in each calendar quarter commencing on October 1, 2013, except that no such remittance or certification shall be made for any calendar quarter after July 15, 2018.
(d) (1) Effective for fiscal years commencing on or after July 1, 2013, the secretary shall, not later than the first day of November, February, May and August, calculate: (A) For each municipality with a mill rate that is higher than the state-wide mill rate, the discrepancy amount for such municipality in the preceding calendar quarter; and (B) for each municipality with a mill rate that is lower than the state-wide mill rate, the amount equal to five per cent of the tax revenue such municipality would have collected in the preceding calendar quarter except for the application of the state-wide mill rate. Such calculations shall be based on the amounts certified and any supporting information provided to said secretary pursuant to subsection (c) of this section. Such calculations shall be made in each calendar quarter commencing on November 1, 2013, except that no such calculations shall be made after the calendar quarter preceding August 1, 2018.
(2) Effective for fiscal years commencing on or after July 1, 2013, the secretary shall, not later than the first day of November, February, May and August, certify to the Comptroller the motor vehicle property tax payment due to each municipality as follows:
(A) For any municipality with a mill rate that is higher than the state-wide mill rate: (i) For the period of time beginning November 1, 2013, and ending October 31, 2014, such municipality shall receive a quarterly motor vehicle property tax payment equal to the discrepancy amount calculated by the secretary pursuant to subparagraph (A) of subdivision (1) of this subsection for any tax revenue due under the assessment year commencing October 1, 2012; (ii) for the period of time beginning November 1, 2014, and ending October 31, 2015, such municipality shall receive a quarterly motor vehicle property tax payment equal to eighty per cent of the discrepancy amount calculated by the secretary pursuant to subparagraph (A) of subdivision (1) of this subsection for any tax revenue due under the assessment year commencing October 1, 2013; (iii) for the period of time beginning November 1, 2015, and ending October 31, 2016, such municipality shall receive a quarterly motor vehicle property tax payment equal to sixty per cent of the discrepancy amount calculated by the secretary pursuant to subparagraph (A) of subdivision (1) of this subsection for any tax revenue due under the assessment year commencing October 1, 2014; (iv) for the period of time beginning November 1, 2016, and ending October 31, 2017, such municipality shall receive a quarterly motor vehicle property tax payment equal to forty per cent of the discrepancy amount calculated by the secretary pursuant to subparagraph (A) of subdivision (1) of this subsection for any tax revenue due under the assessment year commencing October 1, 2015; and (v) for the period of time beginning November 1, 2017, and ending October 31, 2018, such municipality shall receive a quarterly motor vehicle property tax payment equal to twenty per cent of the discrepancy amount calculated by the secretary pursuant to subparagraph (A) of subdivision (1) of this subsection for any tax revenue due under the assessment year commencing October 1, 2016.
(B) For any municipality with a mill rate that is lower than the state-wide mill rate, for the period of time beginning November 1, 2013, and ending October 31, 2018, any such municipality shall receive a quarterly motor vehicle property tax payment equal to the amount calculated by the secretary pursuant to subparagraph (B) of subdivision (1) of this subsection.
(3) Effective for fiscal years commencing on or after July 1, 2013, the Comptroller shall draw an order on the Treasurer on or before the fifteenth calendar day following November first, February first, May first and August first, and the Treasurer shall pay the amount thereof from the motor vehicle property tax account to such municipality on or before the fifteenth calendar day following said dates.
(e) If there are any remaining funds in the motor vehicle property tax account after the amount of the payments described in subsection (d) of this section are calculated, such funds shall be carried over into the following fiscal year. If there are any remaining funds in said account on December 1, 2018, the secretary shall transfer such funds to the General Fund.
Sec. 2. (NEW) (Effective October 1, 2012, and applicable to assessment years commencing on or after said date) There is established an account to be known as the "motor vehicle property tax account" which shall be a separate, nonlapsing account within the General Fund. The account shall contain any moneys required by law to be deposited in the account. Moneys in the account shall be expended by the State Treasurer for the purposes of section 1 of this act.
Sec. 3. Subsection (b) of section 12-71 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012, and applicable to assessment years commencing on or after said date):
(b) Except as otherwise provided by the general statutes, property subject to this section shall be valued at the same percentage of its then actual valuation as the assessors have determined with respect to the listing of real estate for the same year, except that any antique, rare or special interest motor vehicle, as defined in section 14-1, shall be assessed at a value of not more than two thousand five hundred dollars. The owner of such antique, rare or special interest motor vehicle may be required by the assessors to provide reasonable documentation that such motor vehicle is an antique, rare or special interest motor vehicle, provided any motor vehicle for which special number plates have been issued pursuant to section 14-20 shall not be required to provide any such documentation. The provisions of this section shall not include money or property actually invested in merchandise or manufacturing carried on out of this state or machinery or equipment which would be eligible for exemption under subdivision (72) of section 12-81 once installed and which cannot begin or which has not begun manufacturing, processing or fabricating; or which is being used for research and development, including experimental or laboratory research and development, design or engineering directly related to manufacturing or being used for the significant servicing, overhauling or rebuilding of machinery and equipment for industrial use or the significant overhauling or rebuilding of other products on a factory basis or being used for measuring or testing or metal finishing or in the production of motion pictures, video and sound recordings.
Sec. 4. Section 12-71d of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2012):
On or before the first day of October each year, the Secretary of the Office of Policy and Management shall recommend a schedule of motor vehicle values [which] that shall be used by assessors in each municipality in determining the assessed value of motor vehicles for purposes of property taxation. Such schedule shall include motor vehicle values for motor vehicles up to thirty years old. For every vehicle not listed in the schedule the determination of the assessed value of any motor vehicle for purposes of the property tax assessment list in any municipality shall continue to be the responsibility of the assessor in such municipality, provided the legislative body of the municipality may, by resolution, approve any change in the assessor's method of valuing motor vehicles. Any appeal from the findings of assessors concerning motor vehicle values shall be made in accordance with provisions related to such appeals under this chapter. Such schedule of values shall include, to the extent that information for such purpose is available, the value for assessment purposes of any motor vehicle currently in use. [The value for each motor vehicle as listed shall represent one hundred per cent of the average retail price applicable to such motor vehicle in this state as of the first day of October in such year as determined by said secretary in cooperation with the Connecticut Association of Assessing Officers.] Said secretary shall determine the value for each motor vehicle as listed, provided no motor vehicle shall be assessed based on the fair market value applicable to such motor vehicle.
Sec. 5. Subdivision (2) of section 14-1 of the 2012 supplement to the general statutes, as amended by section 37 of public act 10-110 and section 61 of public act 11-213, is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):
(2) "Antique, rare or special interest motor vehicle" means a motor vehicle [twenty] thirty years old or older which is being preserved because of historic interest and which is not altered or modified from the original manufacturer's specifications;
Sec. 6. Section 12-122a of the general statutes is repealed. (Effective October 1, 2012)
This act shall take effect as follows and shall amend the following sections:
Section 1 July 1, 2012, and applicable to assessment years commencing on or after October 1, 2012 New section
Sec. 2 October 1, 2012, and applicable to assessment years commencing on or after said date New section
Sec. 3 October 1, 2012, and applicable to assessment years commencing on or after said date 12-71(b)
Sec. 4 July 1, 2012 12-71d
Sec. 5 October 1, 2012 14-1(2)
Sec. 6 October 1, 2012 Repealer section
This act shall take effect as follows and shall amend the following sections:
Section 1
July 1, 2012, and applicable to assessment years commencing on or after October 1, 2012
New section
Sec. 2
October 1, 2012, and applicable to assessment years commencing on or after said date
New section
Sec. 3
October 1, 2012, and applicable to assessment years commencing on or after said date
12-71(b)
Sec. 4
July 1, 2012
12-71d
Sec. 5
October 1, 2012
14-1(2)
Sec. 6
October 1, 2012
Repealer section
Statement of Legislative Commissioners:
In subsections (a), (c) and (d) of section 1, technical changes were made for consistency in terminology and to conform to the style of the general statutes.
PD Joint Favorable Subst.-LCO
PD
Joint Favorable Subst.-LCO