General Assembly Substitute Bill No. 399
February Session, 2012 *_____SB00399FIN___040412____*
General Assembly
Substitute Bill No. 399
February Session, 2012
*_____SB00399FIN___040412____*
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 Section 12-62r of the 2012 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to assessment years commencing on or after October 1, 2011):
(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 (1) 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, (2) common interest communities, as defined in section 47-202, and (3) condominiums, as defined in section 47-68a, that are used for residential purposes;
(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, nor shall the municipality simultaneously apply the provisions of section 12-62c.
(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] sixty 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 sixty-five per cent. For the assessment years commencing on and after October 1, 2013, 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 the assessment year commencing October 1, 2011, in any municipality that adopts the property tax system under this section, residential property shall be assessed at a minimum rate of twenty-seven per cent. For assessment years commencing on and after October 1, 2011, 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 2011 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 [. 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.] 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. 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 difference in the adjusted tax levy by such municipality between the current fiscal year and the preceding fiscal year is equal to or less than one-half per cent less, and equal to or less than three 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 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 three 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 two and one-half 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 six million dollars, but less than or equal to nine 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; (5) the difference in the adjusted tax levy by such municipality between the current fiscal year and the preceding fiscal year is greater than nine million dollars, but less than or equal to twelve 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 (6) the difference in the adjusted tax levy by such municipality between the current fiscal year and the preceding fiscal year is greater than twelve 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] six million dollars 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.] the budget as adopted in the preceding fiscal year, as adjusted by the amount necessary to meet the funding requirements of the Pension Commission and legally and contractually required increases, as certified by the finance director, shall be deemed to be the budget of such municipality for the ensuing fiscal year, and expenditures shall be made in accordance therewith.
(g) Notwithstanding the provisions of section 12-55 regarding the date of publication of the grand list, the assessor or board of assessors in any municipality that adopts the property tax system under this section shall publish the grand list for such municipality for the assessment year commencing October 1, 2011, not later than fifteen days after the effective date of this section. In each case of any increase in valuation of a property above the valuation of such property in the last-preceding grand list, the assessor or board of assessors shall mail a written notice of assessment increase to the last-known address of the owner of the property the valuation of which has increased, as provided in subsection (c) of section 12-55.
(h) (1) Except as provided in subdivision (2) of this subsection, notwithstanding the provisions of section 12-112, for the assessment year commencing October 1, 2011, any person claiming to be aggrieved by the actions of the assessor or board of assessors pursuant to this section may proceed as provided in section 12-111, provided (1) such appeal shall be filed, in writing, on or before the tenth business day after receipt of the written notice of assessment increase, (2) the board of assessment appeals shall notify each aggrieved person who filed a written appeal in the proper form and in a timely manner, not later than September 1, 2012, of the date, time and place of the appeal hearing, and (3) such board shall notify such person not later than September 1, 2012, that such board has elected not to conduct an appeal hearing, in which case the appellant may appeal directly to the Superior Court pursuant to section 12-117a.
(2) Notwithstanding the provisions of subdivision (1) of this subsection, any municipality that adopts the property tax system under this section shall follow all provisions of chapter 203 with regard to the claim of any person who, prior to the effective date of this section, brought an appeal to the board of assessment appeals in compliance with the provisions of sections 12-111 and 12-112. Such person shall retain the right to appeal to the Superior Court, as provided in section 12-117a.
This act shall take effect as follows and shall amend the following sections:
Section 1 from passage and applicable to assessment years commencing on or after October 1, 2011 12-62r
This act shall take effect as follows and shall amend the following sections:
Section 1
from passage and applicable to assessment years commencing on or after October 1, 2011
12-62r
FIN Joint Favorable Subst.
FIN
Joint Favorable Subst.