Connecticut 2019 Regular Session

Connecticut Senate Bill SB00928 Compare Versions

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7	7		General Assembly Substitute Bill No. 928
8	8		January Session, 2019
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14	14		AN ACT CONCERNING TH E TAX EXEMPTION FOR REAL PROPERTY
15	15		USED FOR CERTAIN PUR POSES.
16	16		Be it enacted by the Senate and House of Representatives in General
17	17		Assembly convened:
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19	19		Section 1. Subdivision (7) of section 12-81 of the general statutes is 1
20	20		repealed and the following is substituted in lieu thereof (Effective 2
21	21		October 1, 2019, and applicable to assessment years commencing on or after 3
22	22		October 1, 2019): 4
23	23		(7) (A) Subject to the provisions of sections 12-87 and 12-88, as 5
24	24		amended by this act, the real property of, or held in trust for, a 6
25	25		corporation organized exclusively for scientific, educational, literary, 7
26	26		historical or charitable purposes or for two or more such purposes and 8
27	27		used exclusively for carrying out one or more of such purposes or for 9
28	28		the purpose of preserving open space land, as defined in section 12-10
29	29		107b, for any of the uses specified in said section, that is owned by any 11
30	30		such corporation, and the personal property of, or held in trust for, any 12
31	31		such corporation, provided (i) any officer, member or employee 13
32	32		thereof does not receive or at any future time shall not receive any 14
33	33		pecuniary profit from the operations thereof, except reasonable 15
34	34		compensation for services in effecting one or more of such purposes or 16
35	35		as proper beneficiary of its strictly charitable purposes, and (ii) in 1965, 17
36	36		and quadrennially thereafter, a statement shall be filed on or before the 18
37	37		first day of November with the assessor or board of assessors of any 19 Substitute Bill No. 928
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44	44		town, consolidated town and city or consolidated town and borough, 20
45	45		in which any of its property claimed to be exempt is situated. Such 21
46	46		statement shall be filed on a form provided by such assessor or board 22
47	47		of assessors. The real property shall be eligible for the exemption 23
48	48		regardless of whether it is used by another corporation organized 24
49	49		exclusively for scientific, educational, literary, historical or charitable 25
50	50		purposes or for two or more such purposes; 26
51	51		(B) On and after [July 1, 1967] October 1, 2019, housing subsidized, 27
52	52		in whole or in part, by federal, state or local government and housing 28
53	53		for persons or families of low and moderate income shall not constitute 29
54	54		a charitable purpose under this section. As used in this subdivision, 30
55	55		"housing" shall not include real property used for [temporary] housing 31
56	56		belonging to, or held in trust for, any corporation organized 32
57	57		exclusively for charitable purposes and exempt from taxation for 33
58	58		federal income tax purposes, the primary use of which property is one 34
59	59		or more of the following: (i) An orphanage; (ii) a drug or alcohol 35
60	60		treatment or rehabilitation facility; (iii) housing for persons who are 36
61	61		homeless, persons with a mental health disorder, persons with 37
62	62		intellectual or physical disability or victims of domestic violence; (iv) 38
63	63		housing for ex-offenders or for individuals participating in a program 39
64	64		sponsored by the state Department of Correction or Judicial Branch; 40
65	65		[and] or (v) short-term housing operated by a charitable organization 41
66	66		where the average length of stay is less than six months. The operation 42
67	67		of such housing, including the receipt of any rental payments, by such 43
68	68		charitable organization shall be deemed to be an exclusively charitable 44
69	69		purpose; 45
70	70		Sec. 2. Section 12-88 of the general statutes is repealed and the 46
71	71		following is substituted in lieu thereof (Effective October 1, 2019, and 47
72	72		applicable to assessment years commencing on or after October 1, 2019): 48
73	73		Real property belonging to, or held in trust for, any organization 49
74	74		mentioned in subdivision (7), (10), (11), (13), (14), (15), (16) or (18) of 50
75	75		section 12-81, as amended by this act, which real property is so held for 51
76	76		one or more of the purposes stated in the applicable subdivision, and 52 Substitute Bill No. 928
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83	83		from which real property no rents, profits or income are derived, shall 53
84	84		be exempt from taxation though not in actual use therefor by reason of 54
85	85		the absence of suitable buildings and improvements thereon, if the 55
86	86		construction of such buildings or improvements is in progress. The 56
87	87		real property belonging to, or held in trust for, any such organization, 57
88	88		not used exclusively for carrying out one or more of such purposes but 58
89	89		leased, rented or otherwise used for other purposes, shall not be 59
90	90		exempt. If a portion only of any lot or building belonging to, or held in 60
91	91		trust for, any such organization is used exclusively for carrying out one 61
92	92		or more of such purposes, such lot or building shall be so exempt only 62
93	93		to the extent of the portion so used and the remaining portion shall be 63
94	94		subject to taxation. Any lot or building or portion of a lot or building 64
95	95		belonging to, or held in trust for, any such organization, used for 65
96	96		carrying out one or more of such purposes shall be exempt only as to 66
97	97		the periods of time during which such lot or building or portion of 67
98	98		such lot or building is unused or used exclusively for carrying out one 68
99	99		or more of such purposes. 69
100	100		Sec. 3. Section 12-89 of the general statutes is repealed and the 70
101	101		following is substituted in lieu thereof (Effective October 1, 2019, and 71
102	102		applicable to assessment years commencing on or after October 1, 2019): 72
103	103		The board of assessors of each town, consolidated town and city or 73
104	104		consolidated town and borough shall inspect the statements filed with 74
105	105		it and required by sections 12-81, as amended by this act, and 12-87 75
106	106		from scientific, educational, literary, historical, charitable, agricultural 76
107	107		and cemetery organizations, shall determine what part, if any, of the 77
108	108		property claimed to be exempt by the organization shall be in fact 78
109	109		exempt and shall place a valuation upon all such property, if any, as is 79
110	110		found to be taxable, provided any property acquired by any tax-80
111	111		exempt organization after the first day of October shall first become 81
112	112		exempt on the assessment date next succeeding the date of acquisition. 82
113	113		Whenever the board of assessors determines that all or part of the 83
114	114		property claimed to be exempt under subdivision (7) of section 12-81, 84
115	115		as amended by this act, by an organization is taxable, the board shall 85 Substitute Bill No. 928
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122	122		state upon its records the reason for its decision. Any organization 86
123	123		filing a tax-exempt statement, aggrieved at the action of the assessor or 87
124	124		board of assessors, may appeal, within the time prescribed by law for 88
125	125		such appeals, to the board of assessment appeals. Any such 89
126	126		organization claiming to be aggrieved by the action of the board of 90
127	127		assessment appeals may, within two months from the time of such 91
128	128		action, make application in the nature of an appeal therefrom to the 92
129	129		superior court for the judicial district in which such property is 93
130	130		situated. 94
131	131		This act shall take effect as follows and shall amend the following
132	132		sections:
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134	134		Section 1 October 1, 2019, and
135	135		applicable to assessment
136	136		years commencing on or
137	137		after October 1, 2019
138	138		12-81(7)
139	139		Sec. 2 October 1, 2019, and
140	140		applicable to assessment
141	141		years commencing on or
142	142		after October 1, 2019
143	143		12-88
144	144		Sec. 3 October 1, 2019, and
145	145		applicable to assessment
146	146		years commencing on or
147	147		after October 1, 2019
148	148		12-89
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150	150		PD Joint Favorable Subst.
151		-	FIN Joint Favorable
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