General Assembly Raised Bill No. 399
February Session, 2012 LCO No. 2102
*02102_______FIN*
Referred to Committee on Finance, Revenue and Bonding
Introduced by:
(FIN)
General Assembly
Raised Bill No. 399
February Session, 2012
LCO No. 2102
*02102_______FIN*
Referred to Committee on Finance, Revenue and Bonding
Introduced by:
(FIN)
AN ACT CONCERNING ANNUAL ADJUSTMENTS TO ASSESSMENT RATES ADOPTED FOR APARTMENT AND RESIDENTIAL PROPERTIES.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Section 12-62r of the 2012 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(a) For the purposes of this section:
(1) "Apartment property" means a building containing four or more dwelling units used for human habitation, the parcel of land on which such building is situated, and any accessory buildings or other improvements located on such parcel;
(2) "Residential property" means a building containing three or fewer dwelling units used for human habitation, the parcel of land on which such building is situated, and any accessory buildings or other improvements located on such parcel, and includes common interest communities, as defined in section 47-202 and residential condominiums, as defined in section 47-68a;
(3) "Base year" means the assessment year commencing October 1, 2010; and
(4) "Adjusted tax levy" means the total amount of taxes raised by taxation in a fiscal year by a municipality as provided in the most recent budget adopted by the legislative body and signed by the chief elected official of such municipality.
(b) Notwithstanding any provision of the general statutes or any special act, municipal charter or any home rule ordinance, any municipality in which the provisions of section 12-62n were effective for the [assessment year commencing October 1, 2010] base year, shall make annual adjustments to the assessment rate charged to apartment and residential property in accordance with the provisions of this section, but in no event shall the assessment rate for any class of property be in excess of seventy per cent.
(c) For the assessment year commencing October 1, 2011, in any municipality that adopts the property tax system under this section, apartment property shall be assessed at a rate of fifty per cent. [For assessment years commencing on and after October 1, 2012, the assessor shall determine a rate of assessment for apartment property that will have the effect of phasing in proportionate increases in the rate so that, by the assessment year commencing October 1, 2015, the assessment rate for apartment property shall be seventy per cent.] For the assessment year commencing October 1, 2012, apartment property shall be assessed at a rate of fifty-five per cent. For the assessment year commencing October 1, 2013, apartment property shall be assessed at a rate of sixty per cent. For the assessment year commencing October 1, 2014, apartment property shall be assessed at a rate of sixty-five per cent. For assessment years commencing on and after October 1, 2015, apartment property shall be assessed at a rate of seventy per cent.
(d) In any municipality that adopts the property tax system under this section, for the assessment year commencing October 1, 2011, and only for said assessment year, the assessor shall determine a rate of assessment for residential property that will have the effect of increasing the average property tax for residential property as a result of revaluation by three and one-half per cent over the property tax for such property class in the base year, but in no event shall the assessment rate be less than twenty-three per cent. For assessment years commencing on and after October 1, [2011] 2012, the assessor shall then calculate an additional adjustment to the rate of assessment for residential property in accordance with subsection (e) of this section.
(e) [Not later than January thirty-first or the completion of the grand list, whichever is later] Prior to the completion of the 2012 grand list, and each assessment year thereafter, the assessor shall [annually] calculate the difference in the adjusted tax levy by such municipality in the current fiscal year and the prior fiscal year by comparing the adjusted tax levy used to calculate the mill rate in the current fiscal year to the adjusted tax levy used to calculate the mill rate for the immediately preceding fiscal year. [The assessor shall then adjust the adjusted tax levy for the current fiscal year in accordance with any change in the consumer price index for all urban consumers in the northeast region in the preceding fiscal year. If, after such adjustment, (1) the adjusted tax levy in the current fiscal year exceeds the adjusted tax levy in the prior fiscal year by more than one hundred per cent of the rate of inflation, as determined in accordance with such consumer price index, the assessor, in his or her calculation of the assessment ratios for the next grand list, shall increase the rate of assessment for residential properties from the prior grand list year by five per cent; (2) the adjusted tax levy in the current fiscal year exceeds the adjusted tax levy in the prior fiscal year by more than fifty per cent, but not more than one hundred per cent, of such rate of inflation, the assessor shall increase such rate of assessment by three and one-half per cent; (3) the adjusted tax levy in the current fiscal year exceeds the adjusted tax levy in the prior fiscal year by not more than fifty per cent of such rate of inflation, the assessor shall increase such rate of assessment by two and one-half per cent; (4) the adjusted tax levy in the current fiscal year is equal to the adjusted tax levy in the prior fiscal year, or is less than one-half per cent less than the adjusted tax levy in the prior fiscal year, the assessor shall increase such rate of assessment by one and one-half per cent; and (5) the adjusted tax levy in the current fiscal year is less than the adjusted tax levy in the prior fiscal year by at least one-half per cent, the assessor shall make no change in such rate of assessment.] If, after calculating such difference, (1) the difference in the adjusted tax levy by such municipality in the current fiscal year is greater than one-half per cent less than the adjusted tax levy in the preceding fiscal year, the assessor, in his or her calculation of the residential assessment ratios for the next grand list, shall make no change in the rate of assessment for residential properties from the preceding assessment year; (2) the adjusted tax levy by such municipality in the current fiscal year is equal to the adjusted tax levy in the preceding fiscal year, or less than one-half per cent less than the adjusted tax levy in the preceding fiscal year, then the assessor, in his or her calculation of the residential assessment ratios for the next grand list, shall increase the rate of assessment for residential properties from the preceding assessment year by one and one-half percentage points; (3) the difference in the adjusted tax levy by such municipality between the current fiscal year and the preceding fiscal year is greater than zero dollars, but less than or equal to two million dollars, then the assessor, in his or her calculation of the assessment ratios for the next grand list, shall increase the rate of assessment for residential properties from the preceding assessment year by two percentage points; (4) the difference in the adjusted tax levy by such municipality between the current fiscal year and the preceding fiscal year is greater than two million dollars, but less than or equal to four million dollars, then the assessor, in his or her calculation of the assessment ratios for the next grand list, shall increase the rate of assessment for residential properties from the prior assessment year by two and one-half percentage points; (5) the difference in the adjusted tax levy by such municipality between the current fiscal year and the preceding fiscal year is greater than four million dollars, but less than or equal to six million dollars, then the assessor, in his or her calculation of the assessment ratios for the next grand list, shall increase the rate of assessment for residential properties from the prior assessment year by three and one-half percentage points; (6) the difference in the adjusted tax levy by such municipality between the current fiscal year and the preceding fiscal year is greater than six million dollars, but less than or equal to eight million dollars, then the assessor, in his or her calculation of the assessment ratios for the next grand list, shall increase the rate of assessment for residential properties from the preceding assessment year by four and one-half percentage points; and (7) the difference in the adjusted tax levy by such municipality between the current fiscal year and the preceding fiscal year is greater than eight million dollars, then the assessor, in his or her calculation of the assessment ratios for the next grand list, shall increase the rate of assessment for residential properties from the preceding assessment year by five percentage points. In each year, the established rate of assessment for residential properties becomes the base residential assessment ratio for calculation of the following year's residential assessment ratio.
(f) Not later than June fifteenth in any year in which the [adjusted tax levy in the current fiscal year increases by] legislative body of the municipality adopts a budget for the following fiscal year that establishes a projected increase in the adjusted tax levy of more than two and six-tenths per cent over the adjusted tax levy in the [prior] current fiscal year, one per cent of the total number of electors of such municipality may petition in writing for a referendum on the budget establishing such increase. Any such referendum shall be held not more than ten days after receipt of such petition by the town clerk and shall be conducted in accordance with the provisions of chapter 90. Such budget shall not become effective unless a majority of the electors voting in such referendum vote in favor thereof. Only one referendum may be held, and, if the vote is against the budget, such municipality shall so adjust the budget as to limit any increase to be equal to or less than two and six-tenths per cent.
This act shall take effect as follows and shall amend the following sections:
Section 1 from passage 12-62r
This act shall take effect as follows and shall amend the following sections:
Section 1
from passage
12-62r
Statement of Purpose:
To adjust the phase-in of increases in the property tax assessments for apartment and residential property in certain municipalities.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]