Connecticut 2019 Regular Session

Connecticut Senate Bill SB01120 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	LCO No. 6729 1 of 7
4	4
5	5	General Assembly Raised Bill No. 1120
6	6	January Session, 2019
7	7	LCO No. 6729
8	8
9	9
10	10	Referred to Committee on FINANCE, REVENUE AND
11	11	BONDING
12	12
13	13
14	14	Introduced by:
15	15	(FIN)
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17	17
18	18
19	19
20	20	AN ACT CONCERNING TH E MILL RATE FOR REAL PROPERTY AN D
21	21	MOTOR VEHICLES OWNED BY CERTAIN UTILITY COMPANIES AND
22	22	ESTABLISHING A PROPE RTY TAX EXEMPTION FO R CERTAIN
23	23	ITEMS WAREHOUSED IN THE STATE BY SUCH CO MPANIES.
24	24	Be it enacted by the Senate and House of Representatives in General
25	25	Assembly convened:
26	26
27	27	Section 1. (NEW) (Effective October 1, 2019) (a) As used in this 1
28	28	section, (1) "utility company" means an electric distribution company, 2
29	29	as defined in section 16-1 of the general statutes, that provides electric 3
30	30	transmission or distribution services to at least fifteen towns in the 4
31	31	state, a gas company or a water company, as those terms are defined in 5
32	32	section 16-1 of the general statutes, for which the Public Utilities 6
33	33	Regulatory Authority established under section 16-2 of the general 7
34	34	statutes approves rates pursuant to section 16-19 of the general 8
35	35	statutes, and (2) "municipality" means any town, city or borough, 9
36	36	consolidated town and city or consolidated town and borough. 10
37	37	(b) For assessment years commencing on or after October 1, 2020, 11
38	38	any property tax assessed under chapter 203 of the general statutes on 12
39	39	Raised Bill No. 1120
40	40
41	41
42	42
43	43	LCO No. 6729 2 of 7
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45	45	real property and motor vehicles, as defined in section 14-1 of the 13
46	46	general statutes, owned by a utility company and not otherwise 14
47	47	exempt from such tax, shall be calculated using a mill rate of fifteen 15
48	48	mills, regardless of the municipality or taxing district in which such 16
49	49	real property or motor vehicles are set. 17
50	50	Sec. 2. Section 12-81 of the general statutes is amended by adding 18
51	51	subdivision (80) as follows (Effective October 1, 2019, and applicable to 19
52	52	assessment years commencing on or after October 1, 2019): 20
53	53	(NEW) (80) Any wires, poles, pipes or other fixtures that will be 21
54	54	installed or used by a utility company, as defined in section 1 of this 22
55	55	act, to distribute or transmit electricity, gas or water and are 23
56	56	warehoused in the state, until the date such wires, poles, pipes or other 24
57	57	fixtures are removed from such warehouse for installation or use in the 25
58	58	state. Any utility company claiming the exemption provided under 26
59	59	this subdivision shall file a request annually with the assessor on a 27
60	60	form prescribed by such assessor. 28
61	61	Sec. 3. Subsection (a) of section 12-18b of the general statutes is 29
62	62	repealed and the following is substituted in lieu thereof (Effective 30
63	63	October 1, 2019): 31
64	64	(a) For purposes of this section: 32
65	65	(1) "College and hospital property" means all real property 33
66	66	described in subsection (a) of section 12-20a; 34
67	67	(2) "District" means any district, as defined in section 7-324; 35
68	68	(3) "Qualified college and hospital property" means college and 36
69	69	hospital property described in subparagraph (B) of subdivision (2) of 37
70	70	subsection (b) of this section; 38
71	71	(4) "Qualified state, municipal or tribal property" means state, 39
72	72	municipal or tribal property described in subparagraphs (A) to (G), 40
73	73	inclusive, of subdivision (1) of subsection (b) of this section; 41
74	74	Raised Bill No. 1120
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77	77
78	78	LCO No. 6729 3 of 7
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80	80	(5) "Municipality" means any town, city, borough, consolidated 42
81	81	town and city and consolidated town and borough; 43
82	82	(6) "Select college and hospital property" means college and hospital 44
83	83	property described in subparagraph (A) of subdivision (2) of 45
84	84	subsection (b) of this section; 46
85	85	(7) "Select payment in lieu of taxes account" means the account 47
86	86	established pursuant to section 12-18c; 48
87	87	(8) "Select state property" means state property described in 49
88	88	subparagraph (H) of subdivision (1) of subsection (b) of this section; 50
89	89	(9) "State, municipal or tribal property" means all real property 51
90	90	described in subsection (a) of section 12-19a; 52
91	91	(10) "Tier one districts or municipalities" means the ten districts or 53
92	92	municipalities with the highest percentage of tax exempt property on 54
93	93	the list of municipalities prepared by the Secretary of the Office of 55
94	94	Policy and Management pursuant to subsection (c) of this section and 56
95	95	having a mill rate of twenty-five mills or more; 57
96	96	(11) "Tier two districts or municipalities" means the next twenty-five 58
97	97	districts or municipalities after tier one districts or municipalities with 59
98	98	the highest percentage of tax exempt property on the list of 60
99	99	municipalities prepared by the Secretary of the Office of Policy and 61
100	100	Management pursuant to subsection (c) of this section and having a 62
101	101	mill rate of twenty-five mills or more; 63
102	102	(12) "Tier three districts or municipalities" means all districts and 64
103	103	municipalities not included in tier one districts or municipalities or tier 65
104	104	two districts or municipalities; 66
105	105	(13) "Tier one municipalities" means the ten municipalities with the 67
106	106	highest percentage of tax exempt property on the list of municipalities 68
107	107	prepared by the Secretary of the Office of Policy and Management 69
108	108	pursuant to subsection (c) of this section and having a mill rate of 70
109	109	Raised Bill No. 1120
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111	111
112	112
113	113	LCO No. 6729 4 of 7
114	114
115	115	twenty-five mills or more; 71
116	116	(14) "Tier two municipalities" means the next twenty -five 72
117	117	municipalities after tier one municipalities with the highest percentage 73
118	118	of tax exempt property on the list of municipalities prepared by the 74
119	119	Secretary of the Office of Policy and Management pursuant to 75
120	120	subsection (c) of this section and having a mill rate of twenty-five mills 76
121	121	or more; 77
122	122	(15) "Tier three municipalities" means all municipalities not 78
123	123	included in tier one municipalities or tier two municipalities; and 79
124	124	(16) "Mill rate" means (A) prior to October 1, 2020, the mill rate on 80
125	125	real property and personal property other than motor vehicles, and (B) 81
126	126	on and after October 1, 2020, the mill rate on real property other than 82
127	127	real property owned by a utility company, as defined in section 1 of 83
128	128	this act, and personal property other than motor vehicles. 84
129	129	Sec. 4. Subsection (a) of section 12-63k of the general statutes is 85
130	130	repealed and the following is substituted in lieu thereof (Effective 86
131	131	October 1, 2019): 87
132	132	(a) As used in this section: 88
133	133	(1) "Average increase in assessed value" means, for the assessment 89
134	134	years commencing October 1, 2012, October 1, 2013, and October 1, 90
135	135	2014, the average of the increase in assessed value of commercial and 91
136	136	industrial property, and personal property used exclusively for 92
137	137	commercial or industrial purposes; 93
138	138	(2) "Base year" means the assessment year commencing October 1, 94
139	139	2014; 95
140	140	(3) "Increase from the base year" means the assessed value of 96
141	141	commercial or industrial property for the current assessment year plus 97
142	142	the current assessment year assessed value of any personal property 98
143	143	acquired after the base year to be used exclusively for commercial or 99
144	144	Raised Bill No. 1120
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146	146
147	147
148	148	LCO No. 6729 5 of 7
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150	150	industrial purposes, less the assessed value of the commercial or 100
151	151	industrial property for the base year; 101
152	152	(4) "Improvement to commercial or industrial property" or 102
153	153	"improvement" includes, but is not limited to, any personal property 103
154	154	acquired after the base year and used exclusively for commercial or 104
155	155	industrial purposes; and 105
156	156	(5) "Mill rate" means (A) prior to October 1, 2020, the mill rate on 106
157	157	real property and personal property other than motor vehicles, and (B) 107
158	158	on and after October 1, 2020, the mill rate on real property other than 108
159	159	real property owned by a utility company, as defined in section 1 of 109
160	160	this act, and personal property other than motor vehicles. 110
161	161	Sec. 5. Subsection (b) of section 12-71e of the general statutes is 111
162	162	repealed and the following is substituted in lieu thereof (Effective 112
163	163	October 1, 2019): 113
164	164	(b) Any municipality or district may establish a mill rate for motor 114
165	165	vehicles that is different from its mill rate for real property and 115
166	166	personal property other than motor vehicles to comply with the 116
167	167	provisions of this section. No district or borough may set a motor 117
168	168	vehicle mill rate that if combined with the motor vehicle mill rate of 118
169	169	the town, city, consolidated town and city or consolidated town and 119
170	170	borough in which such district or borough is located would result in a 120
171	171	combined motor vehicle mill rate (1) above 39 mills for the assessment 121
172	172	year commencing October 1, 2016, or (2) above 45 mills for the 122
173	173	assessment year commencing October 1, 2017, and each assessment 123
174	174	year thereafter. For assessment years commencing on or after October 124
175	175	1, 2020, real property and motor vehicles owned by a utility company, 125
176	176	as defined in section 1 of this act, shall be excluded when calculating 126
177	177	such combined motor vehicle mill rate. 127
178	178	Sec. 6. Section 12-80 of the general statutes is repealed and the 128
179	179	following is substituted in lieu thereof (Effective October 1, 2019): 129
180	180	Raised Bill No. 1120
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182	182
183	183
184	184	LCO No. 6729 6 of 7
185	185
186	186	Real and tangible personal property not otherwise exempt from 130
187	187	property tax and owned by any company, including a foreign 131
188	188	municipal electric utility as defined in section 12-59, employed in the 132
189	189	manufacture, transmission or distribution of gas or electricity or both 133
190	190	to be used for light, heat or motive power or in the operation of a 134
191	191	system of water works for selling or distributing water or both for 135
192	192	domestic or power purposes or for two or more of such purposes shall 136
193	193	be set in the list of each town where such property is situated on its 137
194	194	assessment day and shall be liable to taxation at such percentage of its 138
195	195	fair market value as is determined by the assessors under the 139
196	196	provisions of sections 12-64 and 12-71. The provisions of this section 140
197	197	shall not affect the provisions of section 12-76. Property subject to 141
198	198	taxation under the provisions of this section shall not be subject to 142
199	199	taxation under the provisions of sections 12-77, 12-78 and 12-79. 143
200	200	Railroad companies subject to taxation under the provisions of chapter 144
201	201	210, and express, telephone and cable companies subject to taxation 145
202	202	under the provisions of chapter 211, shall not be subject to the 146
203	203	provisions of this section. 147
204	204	Sec. 7. Section 12-122a of the general statutes is repealed and the 148
205	205	following is substituted in lieu thereof (Effective October 1, 2019): 149
206	206	Any municipality [which] that has more than one taxing district 150
207	207	may by a majority vote of its legislative body set a uniform city-wide 151
208	208	mill rate for taxation of motor vehicles, except that if the charter of 152
209	209	such municipality provides that any mill rate for property tax 153
210	210	purposes shall be set by the board of finance of such municipality, 154
211	211	such uniform city-wide mill rate may be set by a majority vote of such 155
212	212	board of finance. No uniform city-wide mill rate may exceed the 156
213	213	amount set forth in section 12-71e, as amended by this act, and such 157
214	214	uniform city-wide mill rate shall not be applicable, on or after October 158
215	215	1, 2020, to motor vehicles owned by a utility company, as defined in 159
216	216	section 1 of this act. 160
217	217	Raised Bill No. 1120
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219	219
220	220
221	221	LCO No. 6729 7 of 7
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223	223	This act shall take effect as follows and shall amend the following
224	224	sections:
225	225
226	226	Section 1 October 1, 2019 New section
227	227	Sec. 2 October 1, 2019, and
228	228	applicable to assessment
229	229	years commencing on or
230	230	after October 1, 2019
231	231	12-81
232	232	Sec. 3 October 1, 2019 12-18b(a)
233	233	Sec. 4 October 1, 2019 12-63k(a)
234	234	Sec. 5 October 1, 2019 12-71e(b)
235	235	Sec. 6 October 1, 2019 12-80
236	236	Sec. 7 October 1, 2019 12-122a
237	237
238	238	Statement of Purpose:
239	239	To establish a uniform mill rate of fifteen mills for real property and
240	240	motor vehicles owned by certain utility companies, and to provide a
241	241	property tax exemption for certain wires, poles, pipes or other fixtures
242	242	warehoused in the state until such items are installed or used in the
243	243	state.
244	244
245	245	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
246	246	except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
247	247	not underlined.]
248	248