Connecticut 2019 Regular Session

Connecticut House Bill HB05644 Compare Versions

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Version 2 (New)

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7	6		General Assembly Committee Bill No. 5644
8	7		January Session, 2019
9	8		LCO No. 6544
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11	10
12	11		Referred to Committee on PLANNING AND DEVELOPMENT
13	12
14	13
15	14		Introduced by:
16	15		(PD)
17	16
18	17
19	18
20	19		AN ACT CONCERNING TH E DEPRECIATION SCHEDUL E FOR
21	20		COMMERCIAL CONSTRUCT ION EQUIPMENT.
22	21		Be it enacted by the Senate and House of Representatives in General
23	22		Assembly convened:
24	23
25	24		Section 1. Subsection (b) of section 12-63 of the general statutes is 1
26	25		repealed and the following is substituted in lieu thereof (Effective 2
27	26		October 1, 2019, and applicable to assessment years commencing on and after 3
28	27		October 1, 2019): 4
29	28		(b) (1) For the purposes of this subsection, (A) "electronic data 5
30	29		processing equipment" means computers, printers, peripheral 6
31	30		computer equipment, bundled software and any computer -based 7
32	31		equipment acting as a computer, as defined in Section 168 of the 8
33	32		Internal Revenue Code of 1986, or any subsequent corresponding 9
34	33		internal revenue code of the United States, as from time to time 10
35	34		amended; (B) "leased personal property" means tangible personal 11
36	35		property which is the subject of a written or oral lease or loan on the 12
37	36		assessment date, or any such property which has been so leased or 13
38	37		loaned by the then current owner of such property for three or more of 14
39	38		the twelve months preceding such assessment date; and (C) "original 15
40		-	selling price" means the price at which tangible personal property is 16 Committee Bill No. 5644
	39	+	selling price" means the price at which tangible personal property is 16
	40	+	Committee Bill No. 5644
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47	45		most frequently sold in the year that it was manufactured. 17
48	46		(2) Any municipality may, by ordinance, adopt the provisions of 18
49	47		this subsection to be applicable for the assessment year commencing 19
50	48		October first of the assessment year in which a revaluation of all real 20
51	49		property required pursuant to section 12-62 is performed in such 21
52	50		municipality, and for each assessment year thereafter. If so adopted, 22
53	51		the present true and actual value of tangible personal property, other 23
54	52		than motor vehicles not provided for in subdivision (6) of this 24
55	53		subsection, shall be determined in accordance with the provisions of 25
56	54		this subsection. If such property is purchased, its true and actual value 26
57	55		shall be established in relation to the cost of its acquisition, including 27
58	56		transportation and installation, and shall reflect depreciation in 28
59	57		accordance with the schedules set forth in subdivisions (3) to (6), 29
60	58		inclusive, of this subsection. If such property is developed and 30
61	59		produced by the owner of such property for a purpose other than 31
62	60		wholesale or retail sale or lease, its true and actual value shall be 32
63	61		established in relation to its cost of development, production and 33
64	62		installation and shall reflect depreciation in accordance with the 34
65	63		schedules provided in subdivisions (3) to (6), inclusive, of this 35
66	64		subsection. The provisions of this subsection shall not apply to 36
67	65		property owned by a public service company, as defined in section 16-37
68	66		1. 38
69	67		(3) The following schedule of depreciation shall be applicable with 39
70	68		respect to electronic data processing equipment: 40
71	69		(A) Group I: Computer and peripheral hardware, including, but not 41
72	70		limited to, personal computers, workstations, terminals, storage 42
73	71		devices, printers, scanners, computer peripherals and networking 43
74	72		equipment: 44
75	73		T1 Depreciated Value
76	74		T2 As Percentage
77		-	T3 Assessment Year Of Acquisition Committee Bill No. 5644
	75	+	T3 Assessment Year Of Acquisition
	76	+	Committee Bill No. 5644
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84	81		T4 Following Acquisition Cost Basis
85	82		T5 First year Seventy per cent
86	83		T6 Second year Forty per cent
87	84		T7 Third year Twenty per cent
88	85		T8 Fourth year and thereafter Ten per cent
89	86
90	87		(B) Group II: Other hardware, including, but not limited to, mini-45
91	88		frame and main-frame systems with an acquisition cost of more than 46
92	89		twenty-five thousand dollars: 47
93	90		T9 Depreciated Value
94	91		T10 As Percentage
95	92		T11 Assessment Year Of Acquisition
96	93		T12 Following Acquisition Cost Basis
97	94		T13 First year Ninety per cent
98	95		T14 Second year Sixty per cent
99	96		T15 Third year Forty per cent
100	97		T16 Fourth year Twenty per cent
101	98		T17 Fifth year and thereafter Ten per cent
102	99
103	100		(4) The following schedule of depreciation shall be applicable with 48
104	101		respect to copiers, facsimile machines, medical testing equipment, and 49
105	102		any similar type of equipment that is not specifically defined as 50
106	103		electronic data processing equipment, but is considered by the assessor 51
107	104		to be technologically advanced: 52
108	105		T18 Depreciated Value
109	106		T19 As Percentage
110	107		T20 Assessment Year Of Acquisition
111	108		T21 Following Acquisition Cost Basis
112	109		T22 First year Ninety-five per cent
113	110		T23 Second year Eighty per cent
114		-	T24 Third year Sixty per cent Committee Bill No. 5644
	111	+	T24 Third year Sixty per cent
	112	+	Committee Bill No. 5644
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121	117		T25 Fourth year Forty per cent
122	118		T26 Fifth year and thereafter Twenty per cent
123	119
124	120		(5) The following schedule of depreciation shall be applicable with 53
125	121		respect to machinery and equipment used in the manufacturing 54
126	122		process: 55
127	123		T27 Depreciated Value
128	124		T28 As Percentage
129	125		T29 Assessment Year Of Acquisition
130	126		T30 Following Acquisition Cost Basis
131	127		T31 First year Ninety per cent
132	128		T32 Second year Eighty per cent
133	129		T33 Third year Seventy per cent
134	130		T34 Fourth year Sixty per cent
135	131		T35 Fifth year Fifty per cent
136	132		T36 Sixth year Forty per cent
137	133		T37 Seventh year Thirty per cent
138	134		T38 Eighth year and thereafter Twenty per cent
139	135
140	136		(6) The following schedule of depreciation shall be applicable with 56
141	137		respect to all tangible personal property, other than that described in 57
142	138		subdivisions (3) to (5), inclusive, of this subsection, and all machinery 58
143	139		and equipment, including any motor vehicle, used for commercial 59
144	140		construction purposes: 60
145	141		T39 Depreciated Value
146	142		T40 As Percentage
147	143		T41 Assessment Year Of Acquisition
148	144		T42 Following Acquisition Cost Basis
149	145		T43 First year Ninety-five per cent
150	146		T44 Second year Ninety per cent
151		-	T45 Third year Eighty per cent Committee Bill No. 5644
	147	+	T45 Third year Eighty per cent
	148	+	Committee Bill No. 5644
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158	153		T46 Fourth year Seventy per cent
159	154		T47 Fifth year Sixty per cent
160	155		T48 Sixth year Fifty per cent
161	156		T49 Seventh year Forty per cent
162	157		T50 Eighth year and thereafter Thirty per cent
163	158
164	159		(7) The present true and actual value of leased personal property 61
165	160		shall be determined in accordance with the provisions of this 62
166	161		subdivision. Such value for any assessment year shall be established in 63
167	162		relation to the original selling price for self-manufactured property or 64
168	163		acquisition cost for acquired property and shall reflect depreciation in 65
169	164		accordance with the schedules provided in subdivisions (3) to (6), 66
170	165		inclusive, of this subsection. If the assessor is unable to determine the 67
171	166		original selling price of leased personal property, the present true and 68
172	167		actual value thereof shall be its current selling price. 69
173	168		(8) With respect to any personal property which is prohibited by 70
174	169		law from being sold, the present true and actual value of such property 71
175	170		shall be established with respect to such property's original 72
176	171		manufactured cost increased by a ratio the numerator of which is the 73
177	172		total proceeds from the manufacturer's salable equipment sold and the 74
178	173		denominator of which is the total cost of the manufacturer's salable 75
179	174		equipment sold. Such value shall then be depreciated in accordance 76
180	175		with the appropriate schedule in this subsection. 77
181	176		(9) The schedules of depreciation set forth in subdivisions (3) to (6), 78
182	177		inclusive, of this subsection shall not be used with respect to 79
183	178		videotapes, horses or other taxable livestock or electric cogenerating 80
184	179		equipment. 81
185	180		(10) If the assessor determines that the value of any item of personal 82
186	181		property produced by the application of the schedules set forth in this 83
187	182		subsection does not accurately reflect the present true and actual value 84
188	183		of such item, the assessor shall adjust such value to reflect the present 85
189		-	true and actual value of such item. 86 Committee Bill No. 5644
	184	+	true and actual value of such item. 86
	185	+	Committee Bill No. 5644
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196	190		(11) Nothing in this subsection shall prevent any taxpayer from 87
197	191		appealing any assessment made pursuant to this subsection if such 88
198	192		assessment does not accurately reflect the present true and actual 89
199	193		value of any item of such taxpayer's personal property. 90
200	194		This act shall take effect as follows and shall amend the following
201	195		sections:
202	196
203	197		Section 1 October 1, 2019, and
204	198		applicable to assessment
205	199		years commencing on and
206	200		after October 1, 2019
207	201		12-63(b)
208	202
209		-	PD Joint Favorable
	203	+	Statement of Purpose:
	204	+	To include commercial construction equipment registered with the
	205	+	Department of Motor Vehicles in the schedule of depreciation a
	206	+	municipality may adopt for certain tangible personal property.
	207	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
	208	+	except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
	209	+	not underlined.]
	210	+
	211	+	Co-Sponsors: REP. HAINES, 34th Dist.
	212	+
	213	+	H.B. 5644
	214	+
210	215