March 29, 2011
PLANNING AND DEVELOPMENT COMMITTEE BILLS REFERRED TO THE FINANCE, REVENUE, AND BONDING COMMITTEE
By: Rute Pinho, Associate Analyst
You asked for brief summaries of the bills the Planning and Development Committee favorably reported to the Finance Committee.
HB 5143 – AN ACT CONCERNING THE MUNICIPAL OPTION TO ADOPT ASSESSMENT RATES LIMITING PROPERTY TAX INCREASES ON RESIDENTIAL PROPERTIES
This bill allows Hartford to limit annual tax increases for residential and apartment property resulting from a revaluation for five years, including the revaluation year. It does so by exempting Hartford from the statutory requirement that all property be assessed for property tax purposes at 70% of its fair market value. Instead, it requires the Hartford assessor to annually calculate an assessment ratio that results in an average property tax increase attributable to a revaluation of 3% for residential property and 5.25% for apartment property over the taxes paid in the previous year. It limits the increase in the first year (the revaluation year) to 3% and 5.25% over taxes paid in 2010.
The bill defines residential property as any building, land, and accessory buildings and improvements having one to three dwelling units and apartment property as having four or more dwelling units.
EFFECTIVE DATE: Upon passage, and applicable to assessment years starting on or after October 1, 2011
HB 6292 – AN ACT CONCERNING THE PAYMENT OF PERSONAL PROPERTY TAXES BY CERTAIN TELECOMMUNICATIONS COMPANIES
PA 10-171 eliminated the option for telecommunications companies to have their personal property taxed at a statewide mill rate, thus requiring this property to be subject to assessment by the municipality and the locally set rate. These changes applied to assessment years beginning on or after October 1, 2010.
This bill allows municipal tax collectors to bill telecommunications companies for half of the taxes due in 2011 before they would otherwise be due. It allows them to send the bill in two installments, the first one before the July 1, 2011 due date and the second on or after that date.
The first installment equals half of the company's 2010 assessment multiplied by the municipality's mill rate for FY 10, while the second installment equals half of the 2010 assessment multiplied by the FY 11 mill rate. The installments are due, payable, collectible, and subject to the same liens and collection processes as other municipal taxes.
The bill makes telecommunications companies subject to generally applicable property tax collection laws for assessment years starting on or after October 1, 2011.