OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 ¯ (860) 240-0200
http: //www. cga. ct. gov/ofa
sHB-5776
AN ACT CONCERNING THE CONVEYANCE OF CERTAIN PARCELS OF STATE LAND.
As Amended by House "A" (LCO 5397)
House Calendar No. : 318
OFA Fiscal Note
Agency Affected |
Fund-Effect |
FY 07 $ |
FY 08 $ |
Department of Transportation |
TF - Potential Loss of Asset Value |
More than $0. 352 mil. |
None |
Treasurer; Prop. Review Bd. |
GF - Cost |
Minimal |
None |
Policy & Mgmt. , Off. |
GF - Savings |
Minimal |
Minimal |
Municipalities |
Effect |
FY 07 $ |
FY 08 $ |
Various Municipalities |
Gain of Asset Value |
More than $0. 352 mil. |
None |
Various Municipalities |
Revenue Loss |
Minimal |
Minimal |
Various Municipalities |
Revenue Gain |
Potential |
Potential |
Explanation
The impact to the Transportation Fund is a loss of asset value of more than $0. 352 million. The General Fund cost for making the conveyances is minimal (less than $1,000 each). There is also a minimal General Fund saving to the state for payments-in-lieu-of-taxes (PILOT) for state owned property. The conveyances represent a potential revenue loss to the state to the extent that the state could have sold or leased the properties at fair market value.
The land conveyances are subject to the review and approval of the State Properties Review Board, which is required to review each conveyance within 30 days. Deeds or any other instruments necessary for the conveyances must be executed and delivered by the State Treasurer. These activities are part of the respective agencies normal operations and can be accomplished with existing staff and resources.
Municipal
The municipal impact for the towns listed in the table below is: (1) a gain in asset value to certain municipalities; (2) a minimal revenue loss for PILOT payments to the degree that the parcels are eligible for PILOT; and (3) a potential revenue gain to various municipalities for those properties that are used for economic development purposes and become fully taxable.
Further Explanation
The tables below summarize each section of the bill. Table 1 summarizes property conveyances and shows the fiscal impact of each. The parcels must be used for the purposes specified in the bill (labeled “Use Restriction”) or the property will revert to the state. Table 2 summarizes adjustments in the conditions of prior land conveyances. Table 3 summarizes other provisions of the bill.
Table 2: Changes to Prior Conveyances | ||||
Sec. |
From |
To/Location |
Reference |
Language Change |
1 |
DMHAS |
Ledyard |
PA 96-249, Sec 11 |
Land may used for municipal/economic development rather than agriculture |
2 |
State of CT |
Newtown |
PA 05-279, Sec 29 |
Easement through Fairfield Hills property granted by town to state |
3 |
DoAG |
Newtown |
PA 04-186, Sec. 10 |
Right-of-way granted to state by Newtown |
4 |
DOT |
East Hartford |
SA 02-9, Sec. 8 |
Remove easement provision |
6 |
DOT |
Haddam |
PA 98-255, Sec. 16 |
Remove use restriction |
22 |
DEP |
Killingworth |
SA 84-54, Sec. 24(a) |
Waiver of repayment of a dam repair grant-in- aid |
23 |
DOT |
Meriden |
SA 99-17, Sec 6 |
Repeal of conveyance of . 56 acres to city for open space |
House “A” strikes the original bill and has the fiscal impact stated above.
The Out Years
The annualized ongoing fiscal impact for the state is the General Fund cost saving for payments-in-lieu-of-taxes (PILOT) to towns. The annualized ongoing fiscal impact for municipalities is the revenue loss from PILOT payments and the potential revenue gain if the property used for economic development purposes becomes fully taxable.
The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either House thereof for any purpose.