Researcher: JS Page 1 4/20/21
OLR Bill Analysis
sHB 6103
AN ACT CONCERNING PROPERTY TAX EXEMPTIONS FOR
PROPERTY USED FOR CHARITABLE PURPOSES.
SUMMARY
This bill:
1. expands the type of housing owned by federally tax-exempt,
charitable organizations that is exempt from property tax (§ 1);
2. specifies government payments for the treatment, support, or
care of individuals housed in a property do not constitute
government housing subsidies that disqualify the property for a
tax exemption (§ 1);
3. requires assessors to record their reasons for denying property
tax exemptions for certain nonprofit organizations (§ 2); and
4. requires assessors to post on their website the form that
organizations must file every four years to claim a property tax
exemption (i.e., tax-exempt filings) (§ 1).
It also makes technical and conforming changes.
EFFECTIVE DATE: October 1, 2021, and applicable to assessment
years starting after that date.
§ 1 – TAX-EXEMPT CHARITABLE HO USING
Temporary Housing
Current law exempts from property tax temporary housing owned
by, or held in trust for, federally tax-exempt organizations that are
organized exclusively for charitable purposes. The exemption applies
to structures used primarily for one or more of the following purposes:
1. an orphanage; 2021HB-06103-R000527-BA.DOCX
Researcher: JS Page 2 4/20/21
2. a drug or alcohol treatment or rehabilitation facility;
3. to house people who are homeless, have a mental health
disorder or an intellectual or physical disability, or are domestic
violence victims;
4. to house ex-offenders or participants in judicial branch- or
Department of Corrections- sponsored programs; or
5. as short-term housing where the average stay is less than six
months.
The bill eliminates the provision restricting the exemption to just
temporary housing for such purposes, thus expanding the exemption
for the first four purposes listed above to include all such housing
regardless of the length of stay.
Subsidized Housing
Under existing law, housing that is partially or entirely funded by
government subsidies is not a charitable purpose and, as such, is
ineligible for the property tax exemption. The bill specifies
government payments for the treatment, support, or care of
individuals housed in a property described above (e.g., a drug
treatment facility or housing for individuals with a physical disability)
are not subsidies. As such, these payments do not make a property
ineligible for the property tax exemption under the bill.
§ 2 – ASSESSORS’ DENIAL OF EXEMPTIONS
Existing law requires boards of assessors (i.e., assessors) to
determine what portion of the property, if any, owned by scientific,
educational, literary, historical, charitable, agricultural, and cemetery
organizations is exempt and assess any property they determine to be
taxable. They must do so by inspecting the tax-exempt filing such
organizations must file to claim their property tax exemptions.
If an assessor determines that property claimed to be exempt is
taxable, the bill requires assessors to state their rationale in the records. 2021HB-06103-R000527-BA.DOCX
Researcher: JS Page 3 4/20/21
By law, any organization filing a tax-exempt return that is aggrieved
by the assessor’s action may appeal to the board of assessment appeals.
COMMITTEE ACTION
Planning and Development Committee
Joint Favorable Substitute
Yea 26 Nay 0 (03/31/2021)