General Assembly Raised Bill No. 466 February Session, 2016 LCO No. 3262 *03262_______FIN* Referred to Committee on FINANCE, REVENUE AND BONDING Introduced by: (FIN) General Assembly Raised Bill No. 466 February Session, 2016 LCO No. 3262 *03262_______FIN* Referred to Committee on FINANCE, REVENUE AND BONDING Introduced by: (FIN) AN ACT CONCERNING PROPERTY TAXES AND PAYMENTS IN LIEU OF PROPERTY TAXES. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 4-66l of the 2016 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage): (a) For the purposes of this section: (1) "FY 15 mill rate" means the mill rate a municipality uses during the fiscal year ending June 30, 2015; (2) "Mill rate" means the mill rate a municipality uses to calculate tax bills for motor vehicles; (3) "Municipality" means any town, city, consolidated town and city or consolidated town and borough; (4) "Municipal spending" means: T1 Municipal – Municipal T2 spending for spending for T3 the fiscal year the fiscal year T4 prior to the two years T5 current fiscal prior to the T6 year current year X 100 = Municipal spending; T7 ______________________________ T8 Municipal spending for the fiscal T9 year two years prior to the T10 current year T1 Municipal – Municipal T2 spending for spending for T3 the fiscal year the fiscal year T4 prior to the two years T5 current fiscal prior to the T6 year current year X 100 = Municipal spending; T7 ______________________________ T8 Municipal spending for the fiscal T9 year two years prior to the T10 current year (5) "Per capita distribution" means: T11 [Town] Municipal population X Sales tax revenue = Per capita distribution; T12 ___________________ T13 Total state population T11 [Town] Municipal population X Sales tax revenue = Per capita distribution; T12 ___________________ T13 Total state population (6) "Pro rata distribution" means: T14 Municipal weighted mill rate calculation X Sales tax revenue = Pro rata distribution; T15 T16 ____________________ T17 Sum of all municipal weighted mill rate calculations combined T18 T19 T14 Municipal weighted mill rate calculation X Sales tax revenue = Pro rata distribution; T15 T16 ____________________ T17 Sum of all municipal weighted mill rate calculations combined T18 T19 (7) "Regional council of governments" means any such council organized under the provisions of sections 4-124i to 4-124p, inclusive; (8) ["Town population"] "Municipal population" means the number of persons in a municipality according to the most recent estimate of the Department of Public Health; (9) "Total state population" means the number of persons in this state according to the most recent estimate published by the Department of Public Health; (10) "Weighted mill rate" means a municipality's FY 15 mill rate divided by the average of all municipalities' FY 15 mill rate; (11) "Weighted mill rate calculation" means per capita distribution multiplied by a municipality's weighted mill rate; (12) "Sales tax revenue" means the moneys in the account remaining for distribution pursuant to subdivision (7) of subsection (b) of this section; (13) "District" means any district, as defined in section 7-324; [and] (14) "Secretary" means the Secretary of the Office of Policy and Management; [.] (15) For the fiscal year ending June 30, 2017, "mill rate cap" means 32 mills and for fiscal years ending on and after June 30, 2018, "mill rate cap" means 29.36 mills; (16) "Actual levy" means the amount of property taxes levied by a municipality and any district located within such municipality on motor vehicles for the assessment year commencing October 1, 2013, including vehicles on the 2012 supplemental grand list; (17) "Assessed value" means: T20 Actual levy X 1,000 = Assessed value; and T21 ___________________ T22 Mill rate for the fiscal T23 year ending June 30, 2016 T20 Actual levy X 1,000 = Assessed value; and T21 ___________________ T22 Mill rate for the fiscal T23 year ending June 30, 2016 (18) "Levy that would have been received" means: T24 Assessed value X Mill rate cap T25 ___________________ = Levy that would have been T26 1,000 received T24 Assessed value X Mill rate cap T25 ___________________ = Levy that would have been T26 1,000 received (b) There is established an account to be known as the "municipal revenue sharing 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. The secretary shall set aside and ensure availability of moneys in the account in the following order of priority and shall transfer or disburse such moneys as follows: (1) Ten million dollars for the fiscal year ending June 30, 2016, shall be transferred not later than April fifteenth for the purposes of grants under section 10-262h; (2) For the fiscal year ending June 30, 2017, and each fiscal year thereafter, moneys sufficient to make motor vehicle property tax grants payable to municipalities pursuant to subsection (c) of this section shall be expended not later than August first annually by the secretary; (3) For the fiscal year ending June 30, 2017, and each fiscal year thereafter, moneys sufficient to make the grants payable from the select payment in lieu of taxes grant account established pursuant to section 12-18c shall annually be transferred to the select payment in lieu of taxes account in the Office of Policy and Management; (4) For the fiscal years ending June 30, 2017, June 30, 2018, and June 30, 2019, moneys sufficient to make the municipal revenue sharing grants payable to municipalities pursuant to subsection (d) of this section shall be expended not later than October thirty-first annually by the secretary; (5) Ten million dollars for the fiscal year ending June 30, 2017, shall be transferred not later than April fifteenth for the purposes of grants under section 10-262h; (6) (A) For the fiscal year ending June 30, 2017, three million dollars shall be expended by the secretary for the purposes of the regional services grants pursuant to subsection (e) of this section to the regional councils of governments, and (B) for the fiscal year ending June 30, 2018, and each fiscal year thereafter, seven million dollars shall be expended for the purposes of the regional services grants pursuant to subsection (e) of this section to the regional councils of governments; and (7) For the fiscal year ending June 30, 2020, and each fiscal year thereafter, moneys in the account remaining shall be expended annually by the secretary for the purposes of the municipal revenue sharing grants established pursuant to subsection (f) of this section. Any such moneys deposited in the account for municipal revenue sharing grants between October first and June thirtieth shall be distributed to municipalities on the following October first and any such moneys deposited in the account between July first and September thirtieth shall be distributed to municipalities on the following January thirty-first. Any [town] municipality may apply to the Office of Policy and Management on or after July first for early disbursement of a portion of such grant. The Office of Policy and Management may approve such an application if it finds that early disbursement is required in order for a [town] municipality to meet its cash flow needs. No early disbursement approved by said office may be issued later than September thirtieth. (c) (1) For the fiscal year ending June 30, 2017, motor vehicle property tax grants to municipalities that impose mill rates greater than 32 mills or that, when combined with the mill rate of any district located within the municipality, impose mill rates greater than 32 mills, shall be made in an amount equal to the difference between the [amount of property taxes levied by the municipality and any district located within the municipality on motor vehicles for the assessment year commencing October 1, 2013, and the amount such levy would have been if the mill rate on motor vehicles for said assessment year was 32 mills] actual levy and the levy that would have been received; and (2) for the fiscal year ending June 30, 2018, and each fiscal year thereafter, motor vehicle property tax grants to municipalities that impose mill rates greater than 29.36 mills or that, when combined with the mill rate of any district located within the municipality, impose mill rates greater than 29.36 mills, shall be made in an amount equal to the difference between the [amount of property taxes levied by the municipality and any district located within the municipality on motor vehicles for the assessment year commencing October 1, 2013, and the amount such levy would have been if the mill rate on motor vehicles for said assessment year was 29.36 mills] actual levy and the levy that would have been received. Not later than fifteen calendar days after receiving a property tax grant pursuant to this section, the municipality shall disburse to any district located within the municipality the amount of any such property tax grant that is attributable to the district. (d) (1) For the fiscal years ending June 30, 2017, June 30, 2018, and June 30, 2019, each municipality shall receive a municipal revenue sharing grant, except as provided in subdivision (2) of this subsection. The total amount of the grant payable is as follows: T27 Municipality Grant Amounts T28 Andover 96,020 T29 Ansonia 643,519 T30 Ashford 125,591 T31 Avon 539,387 T32 Barkhamsted 109,867 T33 Beacon Falls 177,547 T34 Berlin 1,213,548 T35 Bethany 164,574 T36 Bethel 565,146 T37 Bethlehem 61,554 T38 Bloomfield 631,150 T39 Bolton 153,231 T40 Bozrah 77,420 T41 Branford 821,080 T42 Bridgeport 9,758,441 T43 Bridgewater 22,557 T44 Bristol 1,836,944 T45 Brookfield 494,620 T46 Brooklyn 149,576 T47 Burlington 278,524 T48 Canaan 21,294 T49 Canterbury 84,475 T50 Canton 303,842 T51 Chaplin 69,906 T52 Cheshire 855,170 T53 Chester 83,109 T54 Clinton 386,660 T55 Colchester 475,551 T56 Colebrook 42,744 T57 Columbia 160,179 T58 Cornwall 16,221 T59 Coventry 364,100 T60 Cromwell 415,938 T61 Danbury 2,993,644 T62 Darien 246,849 T63 Deep River 134,627 T64 Derby 400,912 T65 Durham 215,949 T66 East Granby 152,904 T67 East Haddam 268,344 T68 East Hampton 378,798 T69 East Hartford 2,036,894 T70 East Haven 854,319 T71 East Lyme 350,852 T72 East Windsor 334,616 T73 Eastford 33,194 T74 Easton 223,430 T75 Ellington 463,112 T76 Enfield 1,312,766 T77 Essex 107,345 T78 Fairfield 1,144,842 T79 Farmington 482,637 T80 Franklin 37,871 T81 Glastonbury 1,086,151 T82 Goshen 43,596 T83 Granby 352,440 T84 Greenwich 527,695 T85 Griswold 350,840 T86 Groton 623,548 T87 Guilford 657,644 T88 Haddam 245,344 T89 Hamden 2,155,661 T90 Hampton 54,801 T91 Hartford 1,498,643 T92 Hartland 40,254 T93 Harwinton 164,081 T94 Hebron 300,369 T95 Kent 38,590 T96 Killingly 505,562 T97 Killingworth 122,744 T98 Lebanon 214,717 T99 Ledyard 442,811 T100 Lisbon 65,371 T101 Litchfield 244,464 T102 Lyme 31,470 T103 Madison 536,777 T104 Manchester 1,971,540 T105 Mansfield 756,128 T106 Marlborough 188,665 T107 Meriden 1,893,412 T108 Middlebury 222,109 T109 Middlefield 131,529 T110 Middletown 1,388,602 T111 Milford 2,707,412 T112 Monroe 581,867 T113 Montville 578,318 T114 Morris 40,463 T115 Naugatuck 1,251,980 T116 New Britain 3,131,893 T117 New Canaan 241,985 T118 New Fairfield 414,970 T119 New Hartford 202,014 T120 New Haven 114,863 T121 New London 917,228 T122 New Milford 814,597 T123 Newington 937,100 T124 Newtown 824,747 T125 Norfolk 28,993 T126 North Branford 421,072 T127 North Canaan 95,081 T128 North Haven 702,295 T129 North Stonington 155,222 T130 Norwalk 4,896,511 T131 Norwich 1,362,971 T132 Old Lyme 115,080 T133 Old Saybrook 146,146 T134 Orange 409,337 T135 Oxford 246,859 T136 Plainfield 446,742 T137 Plainville 522,783 T138 Plymouth 367,902 T139 Pomfret 78,101 T140 Portland 277,409 T141 Preston 84,835 T142 Prospect 283,717 T143 Putnam 109,975 T144 Redding 273,185 T145 Ridgefield 738,233 T146 Rocky Hill 584,244 T147 Roxbury 23,029 T148 Salem 123,244 T149 Salisbury 29,897 T150 Scotland 52,109 T151 Seymour 494,298 T152 Sharon 28,022 T153 Shelton 1,016,326 T154 Sherman 56,139 T155 Simsbury 775,368 T156 Somers 203,969 T157 South Windsor 804,258 T158 Southbury 582,601 T159 Southington 1,280,877 T160 Sprague 128,769 T161 Stafford 349,930 T162 Stamford 3,414,955 T163 Sterling 110,893 T164 Stonington 292,053 T165 Stratford 1,627,064 T166 Suffield 463,170 T167 Thomaston 228,716 T168 Thompson 164,939 T169 Tolland 437,559 T170 Torrington 1,133,394 T171 Trumbull 1,072,878 T172 Union 24,878 T173 Vernon 922,743 T174 Voluntown 48,818 T175 Wallingford 1,324,296 T176 Warren 15,842 T177 Washington 36,701 T178 Waterbury 5,595,448 T179 Waterford 372,956 T180 Watertown 652,100 T181 West Hartford 2,075,223 T182 West Haven 1,614,877 T183 Westbrook 116,023 T184 Weston 304,282 T185 Westport 377,722 T186 Wethersfield 1,353,493 T187 Willington 174,995 T188 Wilton 547,338 T189 Winchester 323,087 T190 Windham 739,671 T191 Windsor 854,935 T192 Windsor Locks 368,853 T193 Wolcott 490,659 T194 Woodbridge 274,418 T195 Woodbury 288,147 T196 Woodstock 140,648 T27 Municipality Grant Amounts T28 Andover 96,020 T29 Ansonia 643,519 T30 Ashford 125,591 T31 Avon 539,387 T32 Barkhamsted 109,867 T33 Beacon Falls 177,547 T34 Berlin 1,213,548 T35 Bethany 164,574 T36 Bethel 565,146 T37 Bethlehem 61,554 T38 Bloomfield 631,150 T39 Bolton 153,231 T40 Bozrah 77,420 T41 Branford 821,080 T42 Bridgeport 9,758,441 T43 Bridgewater 22,557 T44 Bristol 1,836,944 T45 Brookfield 494,620 T46 Brooklyn 149,576 T47 Burlington 278,524 T48 Canaan 21,294 T49 Canterbury 84,475 T50 Canton 303,842 T51 Chaplin 69,906 T52 Cheshire 855,170 T53 Chester 83,109 T54 Clinton 386,660 T55 Colchester 475,551 T56 Colebrook 42,744 T57 Columbia 160,179 T58 Cornwall 16,221 T59 Coventry 364,100 T60 Cromwell 415,938 T61 Danbury 2,993,644 T62 Darien 246,849 T63 Deep River 134,627 T64 Derby 400,912 T65 Durham 215,949 T66 East Granby 152,904 T67 East Haddam 268,344 T68 East Hampton 378,798 T69 East Hartford 2,036,894 T70 East Haven 854,319 T71 East Lyme 350,852 T72 East Windsor 334,616 T73 Eastford 33,194 T74 Easton 223,430 T75 Ellington 463,112 T76 Enfield 1,312,766 T77 Essex 107,345 T78 Fairfield 1,144,842 T79 Farmington 482,637 T80 Franklin 37,871 T81 Glastonbury 1,086,151 T82 Goshen 43,596 T83 Granby 352,440 T84 Greenwich 527,695 T85 Griswold 350,840 T86 Groton 623,548 T87 Guilford 657,644 T88 Haddam 245,344 T89 Hamden 2,155,661 T90 Hampton 54,801 T91 Hartford 1,498,643 T92 Hartland 40,254 T93 Harwinton 164,081 T94 Hebron 300,369 T95 Kent 38,590 T96 Killingly 505,562 T97 Killingworth 122,744 T98 Lebanon 214,717 T99 Ledyard 442,811 T100 Lisbon 65,371 T101 Litchfield 244,464 T102 Lyme 31,470 T103 Madison 536,777 T104 Manchester 1,971,540 T105 Mansfield 756,128 T106 Marlborough 188,665 T107 Meriden 1,893,412 T108 Middlebury 222,109 T109 Middlefield 131,529 T110 Middletown 1,388,602 T111 Milford 2,707,412 T112 Monroe 581,867 T113 Montville 578,318 T114 Morris 40,463 T115 Naugatuck 1,251,980 T116 New Britain 3,131,893 T117 New Canaan 241,985 T118 New Fairfield 414,970 T119 New Hartford 202,014 T120 New Haven 114,863 T121 New London 917,228 T122 New Milford 814,597 T123 Newington 937,100 T124 Newtown 824,747 T125 Norfolk 28,993 T126 North Branford 421,072 T127 North Canaan 95,081 T128 North Haven 702,295 T129 North Stonington 155,222 T130 Norwalk 4,896,511 T131 Norwich 1,362,971 T132 Old Lyme 115,080 T133 Old Saybrook 146,146 T134 Orange 409,337 T135 Oxford 246,859 T136 Plainfield 446,742 T137 Plainville 522,783 T138 Plymouth 367,902 T139 Pomfret 78,101 T140 Portland 277,409 T141 Preston 84,835 T142 Prospect 283,717 T143 Putnam 109,975 T144 Redding 273,185 T145 Ridgefield 738,233 T146 Rocky Hill 584,244 T147 Roxbury 23,029 T148 Salem 123,244 T149 Salisbury 29,897 T150 Scotland 52,109 T151 Seymour 494,298 T152 Sharon 28,022 T153 Shelton 1,016,326 T154 Sherman 56,139 T155 Simsbury 775,368 T156 Somers 203,969 T157 South Windsor 804,258 T158 Southbury 582,601 T159 Southington 1,280,877 T160 Sprague 128,769 T161 Stafford 349,930 T162 Stamford 3,414,955 T163 Sterling 110,893 T164 Stonington 292,053 T165 Stratford 1,627,064 T166 Suffield 463,170 T167 Thomaston 228,716 T168 Thompson 164,939 T169 Tolland 437,559 T170 Torrington 1,133,394 T171 Trumbull 1,072,878 T172 Union 24,878 T173 Vernon 922,743 T174 Voluntown 48,818 T175 Wallingford 1,324,296 T176 Warren 15,842 T177 Washington 36,701 T178 Waterbury 5,595,448 T179 Waterford 372,956 T180 Watertown 652,100 T181 West Hartford 2,075,223 T182 West Haven 1,614,877 T183 Westbrook 116,023 T184 Weston 304,282 T185 Westport 377,722 T186 Wethersfield 1,353,493 T187 Willington 174,995 T188 Wilton 547,338 T189 Winchester 323,087 T190 Windham 739,671 T191 Windsor 854,935 T192 Windsor Locks 368,853 T193 Wolcott 490,659 T194 Woodbridge 274,418 T195 Woodbury 288,147 T196 Woodstock 140,648 (2) A municipality may opt out, for up to two years, of receiving a municipal revenue sharing grant pursuant to this subsection, provided the chief elected official of such municipality has notified the secretary in writing, on a form prescribed by said secretary, of such municipality's election to opt out of receiving such grant. (e) For the fiscal year ending June 30, 2017, and each fiscal year thereafter, each regional council of governments shall receive a regional services grant, the amount of which will be based on a formula to be determined by the secretary, provided thirty-five per cent of such grant moneys are awarded to regional councils of governments for the purpose of assisting regional education service centers in merging their human resource, finance or technology services with such services provided by municipalities within the region. No such council shall receive a grant for the fiscal year ending June 30, 2018, or any fiscal year thereafter, unless the secretary approves a spending plan for such grant moneys submitted by such council to the secretary on or before July 1, 2017, and annually thereafter. The regional councils of governments shall use such grants for planning purposes and to achieve efficiencies in the delivery of municipal services by regionalizing such services, including, but not limited to, region-wide consolidation of such services. Such efficiencies shall not diminish the quality of such services. A unanimous vote of the representatives of such council shall be required for approval of any expenditure from such grant. On or before October 1, 2017, and biennially thereafter, each such council shall submit a report, in accordance with section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to planning and development and finance, revenue and bonding. Such report shall summarize the expenditure of such grants and provide recommendations concerning the expansion, reduction or modification of such grants. (f) For the fiscal year ending June 30, 2020, and each fiscal year thereafter, each municipality shall receive a municipal revenue sharing grant as follows, except as provided in subdivision (3) of this subsection: (1) (A) A municipality having a mill rate at or above twenty-five shall receive the per capita distribution or pro rata distribution, whichever is higher for such municipality. (B) Such grants shall be increased by a percentage calculated as follows: T197 Sum of per capita distribution amount T198 for all municipalities having a mill rate T199 below twenty-five – pro rata distribution T200 amount for all municipalities T201 having a mill rate below twenty-five T202 _______________________________________ T203 Sum of all grants to municipalities T204 calculated pursuant to subparagraph (A) T205 of subdivision (1) of this subsection. T197 Sum of per capita distribution amount T198 for all municipalities having a mill rate T199 below twenty-five – pro rata distribution T200 amount for all municipalities T201 having a mill rate below twenty-five T202 _______________________________________ T203 Sum of all grants to municipalities T204 calculated pursuant to subparagraph (A) T205 of subdivision (1) of this subsection. (C) Notwithstanding the provisions of subparagraphs (A) and (B) of this subdivision, Hartford shall receive not more than 5.2 per cent of the municipal revenue sharing grants distributed pursuant to this subsection; Bridgeport shall receive not more than 4.5 per cent of the municipal revenue sharing grants distributed pursuant to this subsection; New Haven shall receive not more than 2.0 per cent of the municipal revenue sharing grants distributed pursuant to this subsection and Stamford shall receive not more than 2.8 per cent of the equalization grants distributed pursuant to this subsection. Any excess funds remaining after such reductions in payments to Hartford, Bridgeport, New Haven and Stamford shall be distributed to all other municipalities having a mill rate at or above twenty-five on a pro rata basis according to the payment they receive pursuant to this subdivision; and (2) A municipality having a mill rate below twenty-five shall receive the per capita distribution or pro rata distribution, whichever is less for such municipality. (3) A municipality may opt out, for up to two years, of receiving a municipal revenue sharing grant pursuant to this subsection, provided the chief elected official of such municipality has notified the secretary in writing, on a form prescribed by said secretary, of such municipality's election to opt out of receiving such grant. (g) Except as provided in subsection (c) of this section, a municipality may disburse any municipal revenue sharing grant funds to a district within such municipality. (h) (1) For the fiscal year ending June 30, 2018, and each fiscal year thereafter, the amount of the grant payable to a municipality in any year in accordance with subsection (d) or (f) of this section shall be reduced, except as provided in subdivision (2) of this subsection, if such municipality increases its [general] adopted budget expenditures for such fiscal year above a cap equal to the amount of [general] adopted budget expenditures authorized for the previous fiscal year by 2.5 per cent or more or the rate of inflation, whichever is greater. Such reduction shall be in an amount equal to fifty cents for every dollar expended over the cap set forth in this subsection. For the purposes of this section, (A) "municipal spending" does not include expenditures for debt service, special education, implementation of court orders or arbitration awards, expenditures associated with a major disaster or emergency declaration by the President of the United States or a disaster emergency declaration issued by the Governor pursuant to chapter 517, [or] any disbursement made to a district pursuant to subsection (c) or (g) of this section, budgeting for an audited deficit, nonrecurring grants, capital expenditures or payments on unfunded pension liabilities, (B) "adopted budget expenditures" includes expenditures from a municipality's general fund and expenditures from any nonbudgeted funds, and (C) "capital expenditure" means a nonrecurring capital expenditure of one hundred thousand dollars or more. Each municipality shall annually certify to the secretary, on a form prescribed by said secretary, whether such municipality has exceeded the cap set forth in this subsection and if so the amount by which the cap was exceeded. (2) For the fiscal year ending June 30, 2018, and each fiscal year thereafter, the amount of the grant payable to a municipality in any year in accordance with subsection (d) or (f) of this section shall not be reduced in the case of a municipality whose adopted budget expenditures exceed the cap set forth in subdivision (1) of this subsection by an amount proportionate to any increase to its municipal population from the previous fiscal year, as determined by the secretary. (i) For the fiscal year ending June 30, 2020, and each fiscal year thereafter, the amount of the grant payable to a municipality in any year in accordance with subsection (f) of this section shall be reduced proportionately in the event that the total of such grants in such year exceeds the amount available for such grants in the municipal revenue sharing account established pursuant to subsection (b) of this section. Sec. 2. Section 12-18b of the 2016 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage): (a) For purposes of this section: (1) "College and hospital property" means all real property described in subsection (a) of section 12-20a; (2) "District" means any district, as defined in section 7-324; (3) "Qualified college and hospital property" means college and hospital property described in subparagraph (B) of subdivision (2) of subsection (b) of this section; (4) "Qualified state, municipal or tribal property" means state, municipal or tribal property described in subparagraphs (A) to (G), inclusive, of subdivision (1) of subsection (b) of this section; (5) "Municipality" means any town, city, borough, consolidated town and city and consolidated town and borough; (6) "Select college and hospital property" means college and hospital property described in subparagraph (A) of subdivision (2) of subsection (b) of this section; (7) "Select payment in lieu of taxes account" means the account established pursuant to section 12-18c; (8) "Select state property" means state property described in subparagraph (H) of subdivision (1) of subsection (b) of this section; (9) "State, municipal or tribal property" means all real property described in subsection (a) of section 12-19a; (10) "Tier one districts or municipalities" means the ten districts or municipalities with the highest percentage of tax exempt property on the list of municipalities prepared by the Secretary of the Office of Policy and Management pursuant to subsection (c) of this section and having a mill rate of twenty-five mills or more; (11) "Tier two districts or municipalities" means the next twenty-five districts or municipalities after tier one districts or municipalities with the highest percentage of tax exempt property on the list of municipalities prepared by the Secretary of the Office of Policy and Management pursuant to subsection (c) of this section and having a mill rate of twenty-five mills or more; (12) "Tier three districts or municipalities" means all districts and municipalities not included in tier one districts or municipalities or tier two districts or municipalities; (13) "Tier one municipalities" means the ten municipalities with the highest percentage of tax exempt property on the list of municipalities prepared by the Secretary of the Office of Policy and Management pursuant to subsection (c) of this section and having a mill rate of twenty-five mills or more; (14) "Tier two municipalities" means the next twenty-five municipalities after tier one municipalities with the highest percentage of tax exempt property on the list of municipalities prepared by the Secretary of the Office of Policy and Management pursuant to subsection (c) of this section and having a mill rate of twenty-five mills or more; and (15) "Tier three municipalities" means all municipalities not included in tier one municipalities or tier two municipalities. (b) Notwithstanding the provisions of sections 12-19a and 12-20a, all funds appropriated for state grants in lieu of taxes shall be payable to municipalities and districts pursuant to the provisions of this section. On or before January first, annually, the Secretary of the Office of Policy and Management shall determine the amount due, as a state grant in lieu of taxes, to each municipality and district in this state wherein college and hospital property is located and to each municipality in this state wherein state, municipal or tribal property, except that which was acquired and used for highways and bridges, but not excepting property acquired and used for highway administration or maintenance purposes, is located. (1) The grant payable to any municipality for state, municipal or tribal property under the provisions of this section in the fiscal year ending June 30, 2017, and each fiscal year thereafter shall be equal to the total of: (A) One hundred per cent of the property taxes that 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 August first of any year, the Commissioner of Correction shall, on said date, certify to the Secretary of the Office of Policy and Management a list containing such information; (B) One hundred per cent of the property taxes that 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; (C) One hundred per cent of the property taxes that 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; (D) Subject to the provisions of subsection (c) of section 12-19a, sixty-five per cent of the property taxes that would have been paid with respect to the buildings and grounds comprising Connecticut Valley Hospital in Middletown; (E) With respect to any municipality in which more than fifty per cent of the property is state-owned real property, one hundred per cent of the property taxes that would have been paid with respect to such state-owned property; (F) Forty-five per cent of the property taxes that 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 municipality 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 one-half to the town of Stratford and one-half to the city of Bridgeport; (G) Forty-five per cent of the property taxes that 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 subparagraph shall be the land only, and shall not include the assessed value of any structures, buildings or other improvements on such land; and (H) Forty-five per cent of the property taxes that would have been paid with respect to all other state-owned real property. (2) (A) The grant payable to any municipality or district for college and hospital property under the provisions of this section in the fiscal year ending June 30, 2017, and each fiscal year thereafter shall be equal to the total of seventy-seven per cent of the property taxes that, except for any exemption applicable to any institution of higher education or general hospital facility under the provisions of section 12-81, would have been paid with respect to college and hospital property on the assessment list in such municipality or district for the assessment date two years prior to the commencement of the state fiscal year in which such grant is payable; and (B) Notwithstanding the provisions of subparagraph (A) of this subdivision, the grant payable to any municipality or district with respect to a campus of the United States Department of Veterans Affairs Connecticut Healthcare Systems shall be one hundred per cent. (c) The Secretary of the Office of Policy and Management shall list municipalities, boroughs and districts based on the percentage of real property on the 2012 grand list of each municipality that is exempt from property tax under any provision of the general statutes other than that property described in subparagraph (A) of subdivision (1) of subsection (b) of this section. Boroughs and districts shall have the same ranking as the town, city, consolidated town and city or consolidated town and borough in which such borough or district is located. (d) For the fiscal [year] years ending June 30, 2017, June 30, 2018, and June 30, 2019, in the event that the total of grants payable to each municipality and district in accordance with the provisions of subsection (b) of this section exceeds the amount appropriated for the purposes of said subsection (b) for [said] the applicable fiscal year: (1) The amount of the grant payable to each municipality for state, municipal or tribal property and to each municipality or district for college and hospital property shall be reduced proportionately, provided the percentage of the property taxes payable to a municipality or district with respect to such property shall not be lower than the percentage paid to the municipality or district for such property for the fiscal year ending June 30, 2015; and (2) certain municipalities and districts shall receive an additional payment in lieu of taxes grant payable from the select payment in lieu of taxes account. The total amount of the grant payment is as follows: T206 Municipality/District Grant Amount T207 Ansonia 20,543 T208 Bridgeport 3,236,058 T209 Chaplin 11,177 T210 Danbury 620,540 T211 Deep River 1,961 T212 Derby 138,841 T213 East Granby 9,904 T214 East Hartford 214,997 T215 Hamden 620,903 T216 Hartford 12,422,113 T217 Killingly 46,615 T218 Ledyard 3,012 T219 Litchfield 13,907 T220 Mansfield 2,630,447 T221 Meriden 259,564 T222 Middletown 727,324 T223 Montville 26,217 T224 New Britain 2,085,537 T225 New Haven 15,246,372 T226 New London 1,356,780 T227 Newington 176,884 T228 North Canaan 4,393 T229 Norwich 259,862 T230 Plainfield 16,116 T231 Simsbury 21,671 T232 Stafford 43,057 T233 Stamford 552,292 T234 Suffield 53,767 T235 Wallingford 61,586 T236 Waterbury 3,284,145 T237 West Hartford 211,483 T238 West Haven 339,563 T239 Windham 1,248,096 T240 Windsor 9,660 T241 Windsor Locks 32,533 T242 Borough of Danielson (Killingly) 2,232 T243 Borough of Litchfield 143 T244 Middletown: South Fire District 1,172 T245 Plainfield - Plainfield Fire District 309 T246 West Haven First Center (D1) 1,187 T247 West Haven: Allingtown FD (D3) 53,053 T248 West Haven: West Shore FD (D2) 35,065 T206 Municipality/District Grant Amount T207 Ansonia 20,543 T208 Bridgeport 3,236,058 T209 Chaplin 11,177 T210 Danbury 620,540 T211 Deep River 1,961 T212 Derby 138,841 T213 East Granby 9,904 T214 East Hartford 214,997 T215 Hamden 620,903 T216 Hartford 12,422,113 T217 Killingly 46,615 T218 Ledyard 3,012 T219 Litchfield 13,907 T220 Mansfield 2,630,447 T221 Meriden 259,564 T222 Middletown 727,324 T223 Montville 26,217 T224 New Britain 2,085,537 T225 New Haven 15,246,372 T226 New London 1,356,780 T227 Newington 176,884 T228 North Canaan 4,393 T229 Norwich 259,862 T230 Plainfield 16,116 T231 Simsbury 21,671 T232 Stafford 43,057 T233 Stamford 552,292 T234 Suffield 53,767 T235 Wallingford 61,586 T236 Waterbury 3,284,145 T237 West Hartford 211,483 T238 West Haven 339,563 T239 Windham 1,248,096 T240 Windsor 9,660 T241 Windsor Locks 32,533 T242 Borough of Danielson (Killingly) 2,232 T243 Borough of Litchfield 143 T244 Middletown: South Fire District 1,172 T245 Plainfield - Plainfield Fire District 309 T246 West Haven First Center (D1) 1,187 T247 West Haven: Allingtown FD (D3) 53,053 T248 West Haven: West Shore FD (D2) 35,065 (e) (1) For the fiscal year ending June 30, [2018] 2020, and each fiscal year thereafter, in the event that the total of grants payable to each municipality and district in accordance with the provisions of subsection (b) of this section exceeds the amount appropriated for the purposes of said subsection (b) for said fiscal years: (A) The amount of the grant payable to each municipality for qualified state, municipal or tribal property and to each municipality or district for qualified college and hospital property shall be reduced proportionately, provided the percentage of the property taxes payable to a municipality or district with respect to such property shall not be lower than the percentage paid to the municipality or district for such property for the fiscal year ending June 30, 2015; (B) The amount of the grant payable to each municipality or district for select college and hospital property shall be reduced as follows: (i) Tier one districts or municipalities shall each receive a grant in lieu of taxes equal to forty-two per cent of the property taxes that would have been paid to such municipality or district on select college and hospital property; (ii) tier two districts or municipalities shall each receive a grant in lieu of taxes equal to thirty-seven per cent of the property taxes that would have been paid to such municipality or district on select college and hospital property; and (iii) tier three districts or municipalities shall each receive a grant in lieu of taxes equal to thirty-two per cent of the property taxes that would have been paid to such municipality or district on select college and hospital property. Grants in excess of thirty-two per cent of the property taxes that would have been paid to tier one districts or municipalities and to tier two districts or municipalities on select college and hospital property shall be payable from the select payment in lieu of taxes account; and (C) The amount of the grant payable to each municipality for select state property shall be reduced as follows: (i) Tier one municipalities shall each receive a grant in lieu of taxes equal to thirty-two per cent of the property taxes that would have been paid to such municipality for select state property; (ii) tier two municipalities shall each receive a grant in lieu of taxes equal to twenty-eight per cent of the property taxes that would have been paid to such municipality for select state property; and (iii) tier three municipalities shall each receive a grant in lieu of taxes equal to twenty-four per cent of the property taxes that would have been paid to such municipality for select state property. Grants in excess of twenty-four per cent of the property taxes that would have been paid to tier one municipalities and to tier two municipalities on select state property shall be payable from the select payment in lieu of taxes account. (2) In the event that the total of grants payable to each municipality and district in accordance with the provisions of subsection (b) of this section and subdivision (1) of this subsection exceeds the amount appropriated for the purposes of said subsection and the amount available in the select payment in lieu of taxes account in any fiscal year, the amount of the grant payable to each municipality for state, municipal or tribal property and to each municipality or district for college and hospital property shall be reduced proportionately, provided (A) the grant payable to tier one districts or municipalities for select college and hospital property shall be ten percentage points more than the grant payable to tier three districts or municipalities for such property, (B) the grant payable to tier two districts or municipalities for select college and hospital property shall be five percentage points more than the grant payable to tier three districts or municipalities for such property, (C) the grant payable to tier one municipalities for select state property shall be eight percentage points more than the grant payable to tier three municipalities for such property, and (D) the grant payable to tier two municipalities for select state property shall be four percentage points more than the grant payable to tier three municipalities for such property. Grants to tier one municipalities or districts and grants to tier two municipalities or districts in excess of grants paid to tier three municipalities or districts that would have been paid on select college and hospital property shall be payable from the select payment in lieu of taxes account. Grants to tier one municipalities and grants to tier two municipalities in excess of grants paid to tier three municipalities that would have been paid on select state property shall be payable from the select payment in lieu of taxes account. (f) Notwithstanding the provisions of subsections (a) to (d), inclusive, of this section, for any municipality receiving payments under section 15-120ss, property located in such municipality at Bradley International Airport shall not be included in the calculation of any state grant in lieu of taxes pursuant to this section. (g) For purposes of this section, any real property which is owned by the John Dempsey Hospital Finance Corporation established pursuant to the provisions of sections 10a-250 to 10a-263, inclusive, or by one or more subsidiary corporations established pursuant to subdivision (13) of section 10a-254 and which is free from taxation pursuant to the provisions of section 10a-259 shall be deemed to be state-owned real property. (h) The Office of Policy and Management shall report, in accordance with the provisions of section 11-4a, to the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding, on or before July 1, 2017, and on or before July first annually thereafter until July 1, 2020, with regard to the grants distributed in accordance with this section, and shall include in such reports any recommendations for changes in the grants. This act shall take effect as follows and shall amend the following sections: Section 1 from passage 4-66l Sec. 2 from passage 12-18b This act shall take effect as follows and shall amend the following sections: Section 1 from passage 4-66l Sec. 2 from passage 12-18b Statement of Purpose: To amend the motor vehicle property tax grant calculation, to modify the spending cap for eligibility for such grants, to revise the fiscal years during which certain PILOT grant calculations are applied and to modify the requirements for grants to regional councils of governments. [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.]