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General Assembly Substitute Bill No. 5478
February Session, 2024
AN ACT CONCERNING THE LAND VALUE TAXATION PILOT
PROGRAM.
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 Section 12-63h of the general statutes is repealed and the 1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
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 Substitute Bill No. 5478
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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
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2024 12-63h
PD Joint Favorable Subst.