General Assembly Raised Bill No. 467
February Session, 2014 LCO No. 2601
*02601_______FIN*
Referred to Committee on FINANCE, REVENUE AND BONDING
Introduced by:
(FIN)
General Assembly
Raised Bill No. 467
February Session, 2014
LCO No. 2601
*02601_______FIN*
Referred to Committee on FINANCE, REVENUE AND BONDING
Introduced by:
(FIN)
AN ACT CONCERNING STATE GRANTS IN LIEU OF PROPERTY TAXES.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective July 1, 2014) (a) For purposes of this section, "state-owned property" means all real property described in subsection (a) of section 12-19a of the general statutes, and "college and hospital property" means all real property described in subsection (a) of section 12-20a of the general statutes.
(b) Notwithstanding the provisions of sections 12-19a and 12-20a of the general statutes, for fiscal years commencing July 1, 2015, to July 1, 2019, inclusive, all state grants in lieu of property taxes shall be paid to each municipality of the state in accordance with this section.
(c) The Office of Policy and Management shall rank municipalities based on the amount of state-owned property and college and hospital property located in each municipality. (1) The twenty municipalities with the greatest amount of such property shall receive a grant in lieu of taxes equal to fifty per cent of the property taxes that would have been paid to each municipality on state-owned real property under section 12-19a of the general statutes or on private nonprofit colleges or hospitals under section 12-20a of the general statutes. (2) The twenty municipalities that follow the first twenty municipalities for the amount of state-owned property and college and hospital property in such municipalities shall receive a grant in lieu of taxes equal to forty-five per cent of the property taxes that would have been paid to each municipality on state-owned real property under section 12-19a of the general statutes or on private nonprofit colleges or hospitals under section 12-20a of the general statutes. (3) All municipalities that are not included in the grants described in subdivisions (1) and (2) of this subsection shall receive a grant in lieu of taxes equal to forty per cent of the property taxes that would have been paid to each municipality on state-owned real property under section 12-19a of the general statutes or on private nonprofit colleges or hospitals under section 12-20a of the general statutes.
(d) Notwithstanding the provisions of subsection (c) of this section, the grant payable to any town under the provisions of this section in the state fiscal years commencing July 1, 2015, to July 1, 2019, inclusive, shall be as follows:
(1) (A) Seventy-five per cent of the property taxes which would have been paid with respect to any facility designated by the Commissioner of Correction, on or before August first of each year, to be a correctional facility administered under the auspices of the Department of Correction or a juvenile detention center under direction of the Department of Children and Families that was used for incarcerative purposes during the preceding fiscal year. If a list containing the name and location of such designated facilities and information concerning their use for purposes of incarceration during the preceding fiscal year is not available from the Secretary of the State on the first day of August of any year, said commissioner shall, on said first day of August, certify to the Secretary of the Office of Policy and Management a list containing such information, (B) seventy-five per cent of the property taxes which would have been paid with respect to that portion of the John Dempsey Hospital located at The University of Connecticut Health Center in Farmington that is used as a permanent medical ward for prisoners under the custody of the Department of Correction. Nothing in this section shall be construed as designating any portion of The University of Connecticut Health Center John Dempsey Hospital as a correctional facility, and (C) in the state fiscal years commencing July 1, 2015, to July 1, 2019, inclusive, seventy-five per cent of the property taxes which would have been paid on any land designated within the 1983 Settlement boundary and taken into trust by the federal government for the Mashantucket Pequot Tribal Nation on or after June 8, 1999; (2) subject to the provisions of subsection (c) of section 12-19a of the general statutes, fifty-five per cent of the property taxes which would have been paid with respect to the buildings and grounds comprising Connecticut Valley Hospital in Middletown; (3) notwithstanding the provisions of subsections (b) and (c) of section 12-19a of the general statutes, with respect to any town in which more than fifty per cent of the property is state-owned real property, seventy-five per cent of the property taxes which would have been paid with respect to such state-owned property; (4) forty per cent of the property taxes which would have been paid with respect to all municipally owned airports; except for the exemption applicable to such property, on the assessment list in such town for the assessment date two years prior to the commencement of the state fiscal year in which such grant is payable. The grant provided pursuant to this section for any municipally owned airport shall be paid to any municipality in which the airport is located, except that the grant applicable to Sikorsky Airport shall be paid half to the town of Stratford and half to the city of Bridgeport; and (5) forty per cent of the property taxes which would have been paid with respect to any land designated within the 1983 Settlement boundary and taken into trust by the federal government for the Mashantucket Pequot Tribal Nation prior to June 8, 1999, or taken into trust by the federal government for the Mohegan Tribe of Indians of Connecticut, provided the real property subject to this subdivision shall be the land only, and shall not include the assessed value of any structures, buildings or other improvements on such land.
(e) The grants in lieu of taxes payable to municipalities for the fiscal years commencing July 1, 2015, to July 1, 2020, inclusive, shall be paid as follows: (1) For the fiscal year commencing July 1, 2015, the grant payable shall be equal to eighty per cent of the amounts calculated pursuant to sections 12-19a and 12-20a of the general statutes, and twenty per cent of the amounts calculated pursuant to this section; (2) for the fiscal year commencing July 1, 2016, the grant payable shall be equal to sixty per cent of the amounts calculated pursuant to sections 12-19a and 12-20a of the general statutes, and forty per cent of the amounts calculated pursuant to this section; (3) for the fiscal year commencing July 1, 2017, the grant payable shall be equal to forty per cent of the amounts calculated pursuant to sections 12-19a and 12-20a of the general statutes, and sixty per cent of the amounts calculated pursuant to this section; (4) for the fiscal year commencing July 1, 2018, the grant payable shall be equal to twenty per cent of the amounts calculated pursuant to sections 12-19a and 12-20a of the general statutes, and eighty per cent of the amounts calculated pursuant to this section; and (5) for the fiscal year commencing July 1, 2019, the grant payable shall be equal to one hundred per cent of the amounts calculated pursuant to this section.
(f) No municipality shall receive a grant in lieu of taxes pursuant to this section that is less than that received, after proration is applied as provided in subsection (b) of section 12-19a of the general statutes and subsection (b) of section 12-20a of the general statutes in the fiscal year commencing July 1, 2014.
(g) The Office of Policy and Management shall report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding, on or before July 1, 2016, and on or before July first annually thereafter until July 1, 2019, with regard to the grants distributed in accordance with this section, and shall include in such reports any recommendations for changes in the grants.
(h) For assessment years commencing on and after October 1, 2019, grants in lieu of taxes shall be determined in accordance with sections 12-19a and 12-20a of the general statutes.
This act shall take effect as follows and shall amend the following sections:
Section 1 July 1, 2014 New section
This act shall take effect as follows and shall amend the following sections:
Section 1
July 1, 2014
New section
Statement of Purpose:
To adjust the state grants in lieu of taxes for state-owned real property and property owned by private nonprofit colleges and hospitals.
[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.]