House Bill No. 6255

Public Act No. 01-125

AN ACT CONCERNING THE THRESHOLD FOR INCENTIVES FOR IMPROVEMENTS TO REAL AND PERSONAL PROPERTY AND THE ASSESSMENT OF AN ELECTRIC GENERATION FACILITY.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 12-65b of the general statutes is repealed and the following is substituted in lieu thereof:

(a) Any municipality may, by affirmative vote of its legislative body, enter into a written agreement with any party owning or proposing to acquire an interest in real property in such municipality, or with any party owning or proposing to acquire an interest in air space in such municipality, or with any party who is the lessee of, or who proposes to be the lessee of, air space in such municipality in such a manner that the air space leased or proposed to be leased shall be assessed to the lessee pursuant to section 12-64, fixing the assessment of the real property or air space which is the subject of the agreement, and all improvements thereon or therein and to be constructed thereon or therein, subject to the provisions of subsection (b) of this section, (1) for a period of not more than seven years, provided the cost of such improvements to be constructed is not less than three million dollars, (2) for a period of not more than two years, provided the cost of such improvements to be constructed is not less than five hundred thousand dollars, or (3) to the extent of not more than fifty per cent of such increased assessment, for a period of not more than three years, provided the cost of such improvements to be constructed is not less than [one hundred] twenty-five thousand dollars. [, (4) to the extent of twenty per cent of such increased assessment, for a period of not more than three years, provided the cost of such improvements to be constructed is not less than one hundred thousand dollars, (5) to the extent of thirty per cent of such increased assessment, for a period of not more than three years, provided the cost of such improvements to be constructed is not less than five hundred thousand dollars, (6) to the extent of twenty per cent of such increased assessment, for a period of not less than five years but no more than seven years, provided the costs of such improvements to be constructed is not less than three million dollars, or (7) to the extent of thirty per cent of such increased assessment, for a period of not more than seven years, provided the cost of such improvements to be constructed is not less than five million dollars.]

(b) The provisions of subsection (a) of this section shall only apply if the improvements are for at least one of the following: (1) For office use; (2) for retail use; (3) for permanent residential use; (4) for transient residential use; (5) for manufacturing use; (6) for warehouse, storage or distribution use; (7) for structured multilevel parking use necessary in connection with a mass transit system; (8) for information technology; (9) for recreation facilities; or (10) for transportation facilities.

Sec. 2. Section 12-65h of the general statutes is repealed and the following is substituted in lieu thereof:

Any municipality may, by affirmative vote of its legislative body, enter into a written agreement with any party owning or proposing to acquire an interest in real property in such municipality, or with any party owning or proposing to acquire an interest in air space in such municipality, or with any party who is the lessee of, or who proposes to be the lessee of, air space in such municipality in such a manner that the air space leased or proposed to be leased shall be assessed to the lessee pursuant to section 12-64, upon which is located or proposed to be located a manufacturing facility, as defined in subdivision (72) of section 12-81, fixing the assessment of the personal property located in the facility which is the subject of the agreement, (1) for a period of not more than seven years, provided the increase in the assessed value of such personal property in such facility is not less than three million dollars, (2) for a period of not more than two years, provided the increase in the assessed value of such personal property in such facility is not less than five hundred thousand dollars, or (3) to the extent of not more than fifty per cent of such increased assessment, for a period of not more than three years, provided the increase in the assessed value of such personal property in such facility is not less than [one hundred] twenty-five thousand dollars.

Sec. 3. Subsections (c) and (d) of section 12-94d of the general statutes are repealed and the following is substituted in lieu thereof:

(c) (1) The additional amount shall be a percentage of (A) the difference between the value of an electric generation facility as it would have been assessed were it not for said restructuring taking into account depreciation and the assessed value of such facility, (B) multiplied by the mill rate of the municipality in which the facility is located for the applicable assessment year, (C) minus the amount of any increase in property tax revenues to such municipality as a result of any increase in value of the facility or an additional electric generation facility in the municipality.

(2) The assessor or board of assessors shall calculate the additional amount as follows: (A) For the assessment year during which the value of such facility decreased as a direct result of said restructuring, [ninety] one hundred per cent of the amount computed under subdivision (1) of this subsection; and (B) for each assessment year thereafter, ten per cent less for each succeeding year until the percentage is zero.

(d) On or before June fifteenth, annually, following the assessment date for which the value of an electric generation facility decreases as a direct result of restructuring of the electric industry, the assessor or board of assessors of a municipality in which such a facility is located shall certify to the Secretary of the Office of Policy and Management, on a form furnished by the secretary, the amount as computed in subsection (c) of this section together with supporting information as the secretary may require. The secretary may reevaluate any such facility when, in the secretary's judgment, the valuation is inaccurate. The secretary shall review each claim and modify the value of any facility included therein when, in the secretary's judgment, the value is inaccurate or the facility did not decrease in value as a direct result of restructuring of the electric industry. Not later than [December] July first next succeeding [the conclusion of] the assessment [year] date for which the amount was approved by the assessor or assessors, the secretary shall notify the municipality in which the facility is located of the modification, in accordance with the procedure set forth in subsection (e) of this section. The secretary shall, on or before [December] July fifteenth, annually, certify to the Department of Public Utility Control the amount due the municipality under the provisions of this section, including any modification of such amount made prior to [December] July first, and the department shall order the payment of such amount by the appropriate electric distribution company to the municipality in which the facility is located [on or before the thirty-first day of the December immediately following] according to the following formula: Not later than five business days following the date on which the taxes are paid by the owner of an electric generation facility in July, but in no case prior to July fifteenth, the balance required to equal an amount equal to half of the amount of tax for which the owner of an electric generation facility is liable under this chapter with respect to such facility plus half of the amount calculated in subsection (c) of this section; on or before the thirty-first day of January immediately following, the balance required to equal an amount equal to half of the amount of tax for which the owner of an electric generation facility is liable under this chapter with respect to such facility plus half of the amount calculated in subsection (c) of this section. Following the payment of taxes by the owner of an electric generation facility in July, the town shall certify to the Department of Public Utility Control the amount paid by such owner of an electric generation facility. The amount paid shall be recovered by the electric distribution company through the systems benefits charge established pursuant to section 16-245l. If any modification is made as the result of the provisions of this section on or after the [December] July fifteenth following the date on which the assessor has provided the amount in question, any adjustments to the amount due to a municipality for the period for which such modification was made shall be made in the next payment the electric distribution company shall make to such municipality pursuant to this section.

Sec. 4. This act shall take effect from its passage, except that sections 1 and 2 shall take effect October 1, 2001.

Approved June 20, 2001