General Assembly Substitute Bill No. 1131
January Session, 2015 *_____SB01131FIN___042415____*
General Assembly
Substitute Bill No. 1131
January Session, 2015
*_____SB01131FIN___042415____*
AN ACT CONCERNING GRAND LIST GROWTH.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective October 1, 2016, and applicable to assessment years commencing on or after October 1, 2016) (a) (1) Notwithstanding any provision of the general statutes or any special act, charter or home rule ordinance, and subject to the requirements of subsection (b) of this section, a municipality which contains an enterprise zone designated pursuant to section 32-70 of the general statutes may, by vote of its legislative body, or in a municipality where the legislative body is a town meeting, by vote of the board of selectmen, provide that, for any improvement to commercial or industrial property that results in an increased assessed value of the property of ten thousand dollars or more as compared to the base year, (A) the assessment of such improvement shall be reduced as provided in subdivision (2) of this subsection, and (B) at least fifty per cent of the increase in tax revenue attributable to such improvement shall be allocated to reduce the assessments and total tax imposed on each commercial or industrial property located within the municipality, provided such property is not subject to any other form of property tax relief. The reduced assessment shall be applicable for a period determined by such vote of the legislative body or the board of selectmen.
(2) (A) The tax collector of any municipality that has voted to reduce such assessment pursuant to subdivision (1) of this subsection or the tax collector of any municipality that is subject to the requirements of subsection (b) of this section shall annually calculate the average regional mill rate based on the average mill rate of the planning region of the state, as designated under the provisions of section 16a-4a of the general statutes, in which the municipality is located.
(B) The assessor of each such municipality shall annually (i) calculate the increase from the base year for any improvement that results in an increased assessed value of the property of ten thousand dollars or more as compared to the base year, and (ii) reduce the assessment of such improvement to an amount that yields a total tax on the improvement equal to the tax that would be imposed at the applicable average regional mill rate. Except as provided in subparagraph (B) of subdivision (1) of subsection (b) of this section, such municipality shall allocate at least fifty per cent of any increase in tax revenue attributable to such improvements to reduce the assessments and total tax imposed on each commercial and industrial property located within the municipality, provided such property is not subject to any other form of property tax relief.
(b) (1) Each municipality having a population of not less than one hundred twenty thousand as shown by the last United States census and having a total area of eighteen square miles or less shall (A) reduce the assessment for any improvement to commercial or industrial property that results in an increased assessed value of the property of ten thousand dollars or more as compared to the base year in accordance with subsection (a) of this section, and (B) allocate at least fifty per cent of any increase in tax revenue attributable to such improvement to reduce the assessments and total tax imposed on each commercial or industrial property having a total assessment of less than fifteen million dollars, provided such property is not subject to any other form of property tax relief.
(2) The reduced assessment set forth in this subsection shall continue until the assessment year in which the mill rate for the municipality is no more than ten per cent greater than the average regional mill rate calculated pursuant to subdivision (2) of subsection (a) of this section.
(c) For the purposes of this section, "base year" means the assessment year commencing October 1, 2014, "increase from the base year" means the assessed value of the commercial or industrial property for the current assessment year plus the current assessment year assessed value of any personal property acquired after the base year to be used exclusively for commercial or industrial purposes, less the assessed value of the commercial or industrial property for the base year, and "improvement to commercial or industrial property" includes, but is not limited to, any acquisition of personal property to be used exclusively for commercial or industrial purposes.
This act shall take effect as follows and shall amend the following sections:
Section 1 October 1, 2016, and applicable to assessment years commencing on or after October 1, 2016 New section
This act shall take effect as follows and shall amend the following sections:
Section 1
October 1, 2016, and applicable to assessment years commencing on or after October 1, 2016
New section
FIN Joint Favorable Subst.
FIN
Joint Favorable Subst.