Researcher: JS Page 1 3/31/25
OLR Bill Analysis
HB 7001
AN ACT CONCERNING THE DETERMINATION OF FAIR MARKET
VALUE OF RETAIL SALES FACILITIES FOR PURPOSES OF
PROPERTY TAXATION.
SUMMARY
This bill specifies the method assessors must use to determine retail
sales facilities’ present true and actual value (i.e. fair market value) for
property tax purposes. Under existing law, assessors may generally use
any acceptable mass appraisal methods when conducting real property
valuations, including the (1) market sales comparison approach; (2) cost
approach; or (3) income approach (CGS § 12 -62(b), see
BACKGROUND). Under the bill, assessors must use all three of these
approaches when valuing retail sales facilities specifically, beginning
with the October 1, 2025, assessment year. (It is unclear whether the bill
requires an interim revaluation of retail properties for the 2025
assessment year.)
When doing the market sales comparison analysis for a retail sales
facility, the bill requires assessors to consider reasonably similar
properties. Specifically, those that are similar in age, condition, use,
construction type, location, and design and with similar physical
features and economic characteristics.
Under the bill, “retail sales facilities” are structures used to serve in-
person customers selecting and purchasing retail goods or renting
tangible personal property.
EFFECTIVE DATE: October 1, 2025, and applicable to assessment
years beginning on and after that date.
BACKGROUND
Valuation Methods
Broadly, the market sales comparison approach looks at information 2025HB-07001-R000358-BA.DOCX
Researcher: JS Page 2 3/31/25
on similar, recently sold properties. The cost approach estimates the
current cost of replacing the property, with adjustments for
depreciation, the underlying land’s value, and entrepreneurial profit.
The income (or “income capitalization”) approach considers an income-
producing property’s estimated gross income, vacancy and collection
losses, and expenses and applies a capitalization rate.
Related Bill
sHB 1343, § 3, favorably reported by the Planning and Development
Committee, requires rather than allows assessors to use a uniform
personal property valuation method and depreciation schedule set in
the law.
COMMITTEE ACTION
Planning and Development Committee
Joint Favorable
Yea 13 Nay 7 (03/12/2025)