Connecticut 2018 Regular Session

Connecticut House Bill HB05180

Introduced
2/21/18  
Introduced
2/21/18  

Caption

An Act Concerning The Appraisal Of Certain Rental Income-producing Real Property.

Impact

The passage of HB05180 is poised to have significant implications on how rental properties are taxed, which could ultimately affect both property owners and tenants. By altering the standard for appraisal, the bill seeks to potentially lower property tax burdens for landlords, particularly those with properties generating income. This change may also influence market dynamics and investment strategies in rental real estate, as lower tax obligations could encourage more investment in income-producing properties.

Summary

House Bill 05180, also known as An Act Concerning The Appraisal Of Certain Rental Income-producing Real Property, was introduced to amend the procedures by which the value of certain rental properties is appraised by assessors. The essence of this bill is to re-evaluate the existing appraisal criteria significantly by eliminating the requirement for assessors to consider the capitalization of net income based on market rent for similar properties when appraising rental income-producing real estate. Instead, it emphasizes assessing properties based on replacement costs, depreciation, and sales comparison to establish market value.

Contention

While the bill aims to streamline the appraisal process, it has sparked considerable debate. Proponents argue that the previous requirements were outdated and imposed unnecessary burdens on assessors. They suggest that by focusing on replacement costs and actual market data from comparable sales, assessments will become more equitable and reflective of the true value of properties. Conversely, critics contend that the changes could disproportionately benefit property owners at the expense of state revenue. The elimination of income-based evaluation, they warn, may lead to potential underassessment of property values, thus affecting funding for local services reliant on property taxes.

Companion Bills

No companion bills found.

Previously Filed As

CT SB00452

An Act Concerning The Property Tax Appeals Process And The Penalty Related To The Submission Of Income And Expenses Information For Rental Properties.

CT HB05395

An Act Requiring Disclosure Of Mass Real Property Appraisal Methods.

CT HB05172

An Act Concerning The Assessment Of Motor Vehicles For Property Taxation.

CT SB00450

An Act Phasing In The Exemption Of Motor Vehicles From Property Tax And Increases In The Uniform Property Assessment Rate.

CT SB00501

An Act Concerning Motor Vehicle Assessments For Property Taxation, Innovation Banks, The Interest On Certain Tax Underpayments, The Assessment On Insurers, School Building Projects, The South Central Connecticut Regional Water Authority Charter And Certain State Historic Preservation Officer Procedures.

CT HB05492

An Act Establishing A Farm Investment Tax Credit And Concerning The Threshold For Certain Optional Farm-related Property Tax Exemptions.

CT HB05474

An Act Concerning Municipal Approvals For Housing Development, Fines For Violations Of Local Ordinances, Regulation Of Short-term Rentals, Rental Assistance Program Administration, Notices Of Rent Increases And The Housing Environmental Improvement Revolving Loan And Grant Fund.

CT HB05158

An Act Concerning The Standardized Valuation Of Affordable Rental Housing.

CT HB05393

An Act Concerning Certain Adjustments To Gross Assessments Of Taxable Real Property.

CT SB00006

An Act Concerning Housing.

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DC B25-0486

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CA SB964

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CA SB603

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HI HB1398

Relating To Property.