LCO 6544 \\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-05644-R02-
HB.docx
1 of 6
General Assembly Committee Bill No. 5644
January Session, 2019
LCO No. 6544
Referred to Committee on PLANNING AND DEVELOPMENT
Introduced by:
(PD)
AN ACT CONCERNING TH E DEPRECIATION SCHED ULE FOR
COMMERCIAL CONSTRUCT ION EQUIPMENT.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subsection (b) of section 12-63 of the general statutes is 1
repealed and the following is substituted in lieu thereof (Effective 2
October 1, 2019, and applicable to assessment years commencing on and after 3
October 1, 2019): 4
(b) (1) For the purposes of this subsection, (A) "electronic data 5
processing equipment" means computers, printers, peripheral 6
computer equipment, bundled software and any computer -based 7
equipment acting as a computer, as defined in Section 168 of the 8
Internal Revenue Code of 1986, or any subsequent corresponding 9
internal revenue code of the United States, as from time to time 10
amended; (B) "leased personal property" means tangible personal 11
property which is the subject of a written or oral lease or loan on the 12
assessment date, or any such property which has been so leased or 13
loaned by the then current owner of such property for three or more of 14
the twelve months preceding such assessment date; and (C) "original 15
selling price" means the price at which tangible personal property is 16 Committee Bill No. 5644
LCO 6544 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-05644-
R02-HB.docx }
2 of 6
most frequently sold in the year that it was manufactured. 17
(2) Any municipality may, by ordinance, adopt the provisions of 18
this subsection to be applicable for the assessment year commencing 19
October first of the assessment year in which a revaluation of all real 20
property required pursuant to section 12-62 is performed in such 21
municipality, and for each assessment year thereafter. If so adopted, 22
the present true and actual value of tangible personal property, other 23
than motor vehicles not provided for in subdivision (6) of this 24
subsection, shall be determined in accordance with the provisions of 25
this subsection. If such property is purchased, its true and actual value 26
shall be established in relation to the cost of its acquisition, including 27
transportation and installation, and shall reflect depreciation in 28
accordance with the schedules set forth in subdivisions (3) to (6), 29
inclusive, of this subsection. If such property is developed and 30
produced by the owner of such property for a purpose other than 31
wholesale or retail sale or lease, its true and actual value shall be 32
established in relation to its cost of development, production and 33
installation and shall reflect depreciation in accordance with the 34
schedules provided in subdivisions (3) to (6), inclusive, of this 35
subsection. The provisions of this subsection shall not apply to 36
property owned by a public service company, as defined in section 16-37
1. 38
(3) The following schedule of depreciation shall be applicable with 39
respect to electronic data processing equipment: 40
(A) Group I: Computer and peripheral hardware, including, but not 41
limited to, personal computers, workstations, terminals, storage 42
devices, printers, scanners, computer peripherals and networking 43
equipment: 44
T1 Depreciated Value
T2 As Percentage
T3 Assessment Year Of Acquisition Committee Bill No. 5644
LCO 6544 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-05644-
R02-HB.docx }
3 of 6
T4 Following Acquisition Cost Basis
T5 First year Seventy per cent
T6 Second year Forty per cent
T7 Third year Twenty per cent
T8 Fourth year and thereafter Ten per cent
(B) Group II: Other hardware, including, but not limited to, mini-45
frame and main-frame systems with an acquisition cost of more than 46
twenty-five thousand dollars: 47
T9 Depreciated Value
T10 As Percentage
T11 Assessment Year Of Acquisition
T12 Following Acquisition Cost Basis
T13 First year Ninety per cent
T14 Second year Sixty per cent
T15 Third year Forty per cent
T16 Fourth year Twenty per cent
T17 Fifth year and thereafter Ten per cent
(4) The following schedule of depreciation shall be applicable with 48
respect to copiers, facsimile machines, medical testing equipment, and 49
any similar type of equipment that is not specifically defined as 50
electronic data processing equipment, but is considered by the assessor 51
to be technologically advanced: 52
T18 Depreciated Value
T19 As Percentage
T20 Assessment Year Of Acquisition
T21 Following Acquisition Cost Basis
T22 First year Ninety-five per cent
T23 Second year Eighty per cent
T24 Third year Sixty per cent Committee Bill No. 5644
LCO 6544 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-05644-
R02-HB.docx }
4 of 6
T25 Fourth year Forty per cent
T26 Fifth year and thereafter Twenty per cent
(5) The following schedule of depreciation shall be applicable with 53
respect to machinery and equipment used in the manufacturing 54
process: 55
T27 Depreciated Value
T28 As Percentage
T29 Assessment Year Of Acquisition
T30 Following Acquisition Cost Basis
T31 First year Ninety per cent
T32 Second year Eighty per cent
T33 Third year Seventy per cent
T34 Fourth year Sixty per cent
T35 Fifth year Fifty per cent
T36 Sixth year Forty per cent
T37 Seventh year Thirty per cent
T38 Eighth year and thereafter Twenty per cent
(6) The following schedule of depreciation shall be applicable with 56
respect to all tangible personal property, other than that described in 57
subdivisions (3) to (5), inclusive, of this subsection, and all machinery 58
and equipment, including any motor vehicle, used for commercial 59
construction purposes: 60
T39 Depreciated Value
T40 As Percentage
T41 Assessment Year Of Acquisition
T42 Following Acquisition Cost Basis
T43 First year Ninety-five per cent
T44 Second year Ninety per cent
T45 Third year Eighty per cent Committee Bill No. 5644
LCO 6544 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-05644-
R02-HB.docx }
5 of 6
T46 Fourth year Seventy per cent
T47 Fifth year Sixty per cent
T48 Sixth year Fifty per cent
T49 Seventh year Forty per cent
T50 Eighth year and thereafter Thirty per cent
(7) The present true and actual value of leased personal property 61
shall be determined in accordance with the provisions of this 62
subdivision. Such value for any assessment year shall be established in 63
relation to the original selling price for self-manufactured property or 64
acquisition cost for acquired property and shall reflect depreciation in 65
accordance with the schedules provided in subdivisions (3) to (6), 66
inclusive, of this subsection. If the assessor is unable to determine the 67
original selling price of leased personal property, the present true and 68
actual value thereof shall be its current selling price. 69
(8) With respect to any personal property which is prohibited by 70
law from being sold, the present true and actual value of such property 71
shall be established with respect to such property's original 72
manufactured cost increased by a ratio the numerator of which is the 73
total proceeds from the manufacturer's salable equipment sold and the 74
denominator of which is the total cost of the manufacturer's salable 75
equipment sold. Such value shall then be depreciated in accordance 76
with the appropriate schedule in this subsection. 77
(9) The schedules of depreciation set forth in subdivisions (3) to (6), 78
inclusive, of this subsection shall not be used with respect to 79
videotapes, horses or other taxable livestock or electric cogenerating 80
equipment. 81
(10) If the assessor determines that the value of any item of personal 82
property produced by the application of the schedules set forth in this 83
subsection does not accurately reflect the present true and actual value 84
of such item, the assessor shall adjust such value to reflect the present 85
true and actual value of such item. 86 Committee Bill No. 5644
LCO 6544 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-05644-
R02-HB.docx }
6 of 6
(11) Nothing in this subsection shall prevent any taxpayer from 87
appealing any assessment made pursuant to this subsection if such 88
assessment does not accurately reflect the present true and actual 89
value of any item of such taxpayer's personal property. 90
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2019, and
applicable to assessment
years commencing on and
after October 1, 2019
12-63(b)
PD Joint Favorable