LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00928-R02-
SB.docx
1 of 4
General Assembly Substitute Bill No. 928
January Session, 2019
AN ACT CONCERNING TH E TAX EXEMPTION FOR REAL PROPERTY
USED FOR CERTAIN PUR POSES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subdivision (7) of section 12-81 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repealed and the following is substituted in lieu thereof (Effective 2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 or after 3
October 1, 2019): 4
(7) (A) Subject to the provisions of sections 12-87 and 12-88, as 5
amended by this act, the real property of, or held in trust for, a 6
corporation organized exclusively for scientific, educational, literary, 7
historical or charitable purposes or for two or more such purposes and 8
used exclusively for carrying out one or more of such purposes or for 9
the purpose of preserving open space land, as defined in section 12-10
107b, for any of the uses specified in said section, that is owned by any 11
such corporation, and the personal property of, or held in trust for, any 12
such corporation, provided (i) any officer, member or employee 13
thereof does not receive or at any future time shall not receive any 14
pecuniary profit from the operations thereof, except reasonable 15
compensation for services in effecting one or more of such purposes or 16
as proper beneficiary of its strictly charitable purposes, and (ii) in 1965, 17
and quadrennially thereafter, a statement shall be filed on or before the 18
first day of November with the assessor or board of assessors of any 19 Substitute Bill No. 928
LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00928-
R02-SB.docx }
2 of 4
town, consolidated town and city or consolidated town and borough, 20
in which any of its property claimed to be exempt is situated. Such 21
statement shall be filed on a form provided by such assessor or board 22
of assessors. The real property shall be eligible for the exemption 23
regardless of whether it is used by another corporation organized 24
exclusively for scientific, educational, literary, historical or charitable 25
purposes or for two or more such purposes; 26
(B) On and after [July 1, 1967] October 1, 2019, housing subsidized, 27
in whole or in part, by federal, state or local government and housing 28
for persons or families of low and moderate income shall not constitute 29
a charitable purpose under this section. As used in this subdivision, 30
"housing" shall not include real property used for [temporary] housing 31
belonging to, or held in trust for, any corporation organized 32
exclusively for charitable purposes and exempt from taxation for 33
federal income tax purposes, the primary use of which property is one 34
or more of the following: (i) An orphanage; (ii) a drug or alcohol 35
treatment or rehabilitation facility; (iii) housing for persons who are 36
homeless, persons with a mental health disorder, persons with 37
intellectual or physical disability or victims of domestic violence; (iv) 38
housing for ex-offenders or for individuals participating in a program 39
sponsored by the state Department of Correction or Judicial Branch; 40
[and] or (v) short-term housing operated by a charitable organization 41
where the average length of stay is less than six months. The operation 42
of such housing, including the receipt of any rental payments, by such 43
charitable organization shall be deemed to be an exclusively charitable 44
purpose; 45
Sec. 2. Section 12-88 of the general statutes is repealed and the 46
following is substituted in lieu thereof (Effective October 1, 2019, and 47
applicable to assessment years commencing on or after October 1, 2019): 48
Real property belonging to, or held in trust for, any organization 49
mentioned in subdivision (7), (10), (11), (13), (14), (15), (16) or (18) of 50
section 12-81, as amended by this act, which real property is so held for 51
one or more of the purposes stated in the applicable subdivision, and 52 Substitute Bill No. 928
LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00928-
R02-SB.docx }
3 of 4
from which real property no rents, profits or income are derived, shall 53
be exempt from taxation though not in actual use therefor by reason of 54
the absence of suitable buildings and improvements thereon, if the 55
construction of such buildings or improvements is in progress. The 56
real property belonging to, or held in trust for, any such organization, 57
not used exclusively for carrying out one or more of such purposes but 58
leased, rented or otherwise used for other purposes, shall not be 59
exempt. If a portion only of any lot or building belonging to, or held in 60
trust for, any such organization is used exclusively for carrying out one 61
or more of such purposes, such lot or building shall be so exempt only 62
to the extent of the portion so used and the remaining portion shall be 63
subject to taxation. Any lot or building or portion of a lot or building 64
belonging to, or held in trust for, any such organization, used for 65
carrying out one or more of such purposes shall be exempt only as to 66
the periods of time during which such lot or building or portion of 67
such lot or building is unused or used exclusively for carrying out one 68
or more of such purposes. 69
Sec. 3. Section 12-89 of the general statutes is repealed and the 70
following is substituted in lieu thereof (Effective October 1, 2019, and 71
applicable to assessment years commencing on or after October 1, 2019): 72
The board of assessors of each town, consolidated town and city or 73
consolidated town and borough shall inspect the statements filed with 74
it and required by sections 12-81, as amended by this act, and 12-87 75
from scientific, educational, literary, historical, charitable, agricultural 76
and cemetery organizations, shall determine what part, if any, of the 77
property claimed to be exempt by the organization shall be in fact 78
exempt and shall place a valuation upon all such property, if any, as is 79
found to be taxable, provided any property acquired by any tax-80
exempt organization after the first day of October shall first become 81
exempt on the assessment date next succeeding the date of acquisition. 82
Whenever the board of assessors determines that all or part of the 83
property claimed to be exempt under subdivision (7) of section 12-81, 84
as amended by this act, by an organization is taxable, the board shall 85 Substitute Bill No. 928
LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00928-
R02-SB.docx }
4 of 4
state upon its records the reason for its decision. Any organization 86
filing a tax-exempt statement, aggrieved at the action of the assessor or 87
board of assessors, may appeal, within the time prescribed by law for 88
such appeals, to the board of assessment appeals. Any such 89
organization claiming to be aggrieved by the action of the board of 90
assessment appeals may, within two months from the time of such 91
action, make application in the nature of an appeal therefrom to the 92
superior court for the judicial district in which such property is 93
situated. 94
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 or
after October 1, 2019
12-81(7)
Sec. 2 October 1, 2019, and
applicable to assessment
years commencing on or
after October 1, 2019
12-88
Sec. 3 October 1, 2019, and
applicable to assessment
years commencing on or
after October 1, 2019
12-89
PD Joint Favorable Subst.
FIN Joint Favorable