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General Assembly Raised Bill No. 5478
February Session, 2024
LCO No. 2567
Referred to Committee on PLANNING AND DEVELOPMENT
Introduced by:
(PD)
AN ACT CONCERNING THE LAND VALUE TAXATION PILOT
PROGRAM AND ELIGIBLE COMMUNITY INVESTMENT FUND
PROJECTS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 12-63h of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective October 1, 2024): 2
(a) The Secretary of the Office of Policy and Management shall 3
establish a pilot program in up to [three] five municipalities whereby 4
the selected municipalities shall develop a plan for implementation of 5
land value taxation that (1) classifies real estate included in the taxable 6
grand list as (A) land or land exclusive of buildings, or (B) buildings on 7
land; and (2) establishes a different mill rate for property tax purposes 8
for each class, provided the higher mill rate shall apply to land or land 9
exclusive of buildings. The different mill rates for taxable real estate in 10
each class shall not be applicable to any property for which a grant is 11
payable under section 12-18b. 12
(b) The secretary shall establish an application procedure and any 13
other criteria for the program and shall send a copy of such application 14 Raised Bill No. 5478
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procedure and any other criteria to the joint standing committee of the 15
General Assembly having cognizance of matters relating to planning 16
and development. The secretary shall not select a municipality for the 17
pilot program unless the legislative body of the municipality has 18
approved the application. The secretary shall send a notice of selection 19
for the pilot program to the chief executive officer of the municipality 20
and to the joint standing committee of the General Assembly having 21
cognizance of matters relating to planning and development. 22
(c) After receipt of the notice of selection provided by the Secretary of 23
the Office of Policy and Management pursuant to subsection (b) of this 24
section, the chief elected official of such municipality shall appoint a 25
committee consisting of (1) a representative of the legislative body of the 26
municipality or where the legislative body is the town meeting, a 27
representative of the board of selectmen; (2) a representative from the 28
business community; (3) a land use attorney; and (4) relevant taxpayers 29
and stakeholders. Such committee shall prepare a plan for 30
implementation of land value taxation. Such plan shall (A) provide a 31
process for implementation of differentiated tax rates; (B) designate 32
geographic areas of the municipality where the differentiated rates shall 33
be applied; and (C) identify legal and administrative issues affecting the 34
implementation of the plan. The chief executive officer, the chief elected 35
official, the assessor and the tax collector of the municipality shall have 36
an opportunity to review and comment on the plan. On or before 37
December 31, [2020] 2027, and upon approval of the plan by the 38
legislative body, the plan shall be submitted to the joint standing 39
committees of the General Assembly having cognizance of matters 40
relating to planning and development, finance, revenue and bonding 41
and commerce. Any municipality that has previously applied for and 42
participated in the pilot program established pursuant to this section 43
shall be ineligible for subsequent selection to participate in the pilot 44
program. 45
Sec. 2. Subdivision (3) of subsection (a) of section 32-285a of the 2024 46
supplement to the general statutes is repealed and the following is 47
substituted in lieu thereof (Effective July 1, 2024): 48 Raised Bill No. 5478
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(3) "Eligible project" means: 49
(A) (i) A project proposed by a municipality, community 50
development corporation or nonprofit organization, for the purpose of 51
promoting economic or community development in the municipality or 52
a municipality served by such corporation or organization, such as 53
brownfield remediation, affordable housing, establishment of or 54
improvements to water and sewer infrastructure to support smaller 55
scale economic development, pedestrian safety and traffic calming 56
improvements, establishment of or improvements to energy resiliency 57
or clean energy projects and land acquisition and capital projects to 58
construct, rehabilitate or renovate buildings and structures to facilitate 59
or improve home rehabilitation programs and facilities such as libraries 60
and senior centers; or 61
(ii) A grant-in-aid proposed by a m unicipality, community 62
development corporation or nonprofit organization for the purpose of 63
providing (I) a revolving loan program, microloans or gap financing, to 64
small businesses located within such municipality or a municipality 65
served by such corporation or organization, including, but not limited 66
to, a revolving loan program for improvements and repairs to exterior 67
facades and interior spaces of commercial buildings and signage 68
associated with such buildings, or (II) start-up funds to establish a small 69
business in any such municipality; and 70
(B) Such project or grant-in-aid furthers consistent and systematic 71
fair, just and impartial treatment of all individuals, including 72
individuals who belong to underserved and marginalized communities 73
that have been denied such treatment, such as Black, Latino and 74
indigenous and Native American persons; Asian Americans and Pacific 75
Islanders and other persons of color; members of religious minorities; 76
lesbian, gay, bisexual, transgender and queer persons and other persons 77
comprising the LGBTQ+ community; persons who live in rural areas; 78
and persons otherwise adversely affected by persistent poverty or 79
inequality; and 80 Raised Bill No. 5478
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This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2024 12-63h
Sec. 2 July 1, 2024 32-285a(a)(3)
Statement of Purpose:
To expand the land value taxation pilot program and authorize the
Community Investment Fund Board 2030 to provide grants-in-aid for
certain projects.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]