You asked if a town could tacitly disqualify a business for a state-mandated property tax abatement by failing to apply for state reimbursement. Your question specifically concerns the five-year, 80% abatement for manufacturing machinery and equipment available to businesses under the enterprise zone program, which also reimburses towns for half of the revenue they lose due to the abatement. The Office of Legislative Research cannot give legal opinions and you should not regard this memo as one.

A town's failure to apply for state reimbursement does not disqualify a business for the abatement. If an eligible business properly files for the abatement, the town must grant it. Different statutes govern the abatement and the reimbursement (CGS 12-81 (60) and CGS § 32-9s, respectively), and neither allows the town to withhold the abatement if it fails to apply for state reimbursement.

A business qualifies for the abatement based on statutory criteria (CGS § 32-9p (d)). The Department of Economic and Community Development, not the town, determines if the business meets these criteria and certifies its eligibility (CGS § 32-9r). Once certified, the business must annually file for the abatement with the tax assessor, listing the eligible machinery and equipment. The business must do this by November 1^st or lose the abatement, unless the assessor gives it more time to file (CGS § 12-81 (60) (c)).

The town must apply to the Office of Policy and Management (OPM) for reimbursement by August 1^st or forfeit $ 250 to the state (CGS § 32-9s, as amended by PA 01-6, JSS). OPM can waive the forfeiture for reasons specified in regulations. The statutes specifies the procedures for approving the claim, appealing decisions to modify or deny it, and recouping the abated taxes.

If the town neglected to abate the taxes, the business can apply to the tax collector for a refund (CGS § 12-129). The business must do so within three years after the tax was due or a later date the town can set by ordinance. It must specify the amount of refund it is seeking and the reasons why. The tax collector must then recommend to the town's legislative body whether to refund the taxes and, if so, certify the amount.

JR: ro