Connecticut House Bill HB06801

Connecticut 2023 Regular Session

• Introduced: 2/24/23
• Refer: 2/24/23
• Report Pass: 3/19/23
• Refer: 3/28/23
• Report Pass: 4/4/23
• Engrossed: 5/16/23
• Report Pass: 5/18/23
• Passed: 6/7/23
• Chaptered: 6/15/23
• Enrolled: 6/22/23
• Passed: 6/27/23

Caption

An Act Concerning The Submission Of Income And Expense Information In Connection With The Assessment Of Income-producing Real Property.

Impact

The enactment of this bill will significantly affect how income-producing properties are assessed in the state. By requiring property owners to provide essential financial information, it aims to enhance the transparency and accuracy of property assessments, which in turn can impact the tax revenues generated from such properties. Furthermore, the bill includes provisions that protect submitted information from becoming public, thus addressing privacy concerns while ensuring that assessors have the necessary information for evaluations.

Summary

House Bill 06801, known as 'An Act Concerning The Submission Of Income And Expense Information In Connection With The Assessment Of Income-producing Real Property', introduces new requirements for property owners who have income-generating real estate. Specifically, it mandates that owners submit comprehensive information regarding rental income and associated operating expenses to tax assessors by June 1 of each year. This data will aid in the accurate assessment of the property’s value, particularly when using the capitalization of net income method for appraisals.

Sentiment

Overall, support for HB 06801 appears strong among lawmakers who believe that it will lead to fairer tax assessments and better compliance from property owners. However, there are also reservations among some property owners about the potential burden of annual reporting and the penalties for non-compliance. While proponents argue that it will streamline processes and improve equity in assessments, opponents fear it may create additional administrative challenges and financial impacts if they fail to provide the required documentation accurately.

Contention

One notable point of contention is the penalty structure introduced by the bill for failure to submit required information or for submitting fraudulent data. This penalty can increase the assessed property value by 10%, which many consider a heavy financial burden, particularly for those who may inadvertently fail to comply due to misunderstanding the requirements. There are discussions around the fairness of such penalties and if they disproportionately impact smaller property owners or those with less access to resources for navigating these new requirements.