Substitute Senate Bill No. 1231

Public Act No. 99-235

An Act Concerning Tax Incentives for Donation or Discount Sale of Land to be Preserved as Open Space.

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

Section 1. Subsection (a) of section 12-632 of the general statutes, as amended by section 45 of public act 99-173, is repealed and the following is substituted in lieu thereof:

(a) On or before September 1, 1995, and on or before July first of each succeeding year, any municipality desiring to obtain benefits under the provisions of this chapter shall, after approval by the legislative body of such municipality, submit to the Commissioner of Revenue Services a list on a form prescribed and made available by the commissioner of programs eligible for investment by business firms under the provisions of this chapter. Such activities shall consist of providing neighborhood assistance; job training or education; community services; crime prevention; energy conservation or construction or rehabilitation of dwelling units for families of low and moderate income in the state; donation of money to an open space acquisition fund of [the state,] any political subdivision of the state or any nonprofit land conservation organization which fund qualifies under subsection (h) of section 12-631 and is used for the purchase of land, interest in land or permanent conservation restriction on land, which is to be permanently preserved as protected open space; or any of the activities described in section 12-634, 12-635 or 12-635a. Such list shall indicate, for each program specified: The concept of the program, the neighborhood area to be served, why the program is needed, the estimated amount required to be invested in the program, the suggested plan for implementing the program, the agency designated by the municipality to oversee implementation of the program and such other information as the commissioner may prescribe. Each municipality shall hold at least one public hearing on the subject of which programs shall be included on such list prior to the submission of such list to the commissioner.

Sec. 2. Subsection (b) of section 23-8 of the general statutes, as amended by section 46 of public act 99-173, is repealed and the following is substituted in lieu thereof:

(b) [It shall be the goal of the state to have not less than ten] Twenty-one per cent of the state's land area shall be held by the state as open space land. The goal of the state's open space acquisition program shall be to acquire land such that ten per cent of the state's land area is held by the state as open space land and not less than eleven per cent of the state's land area held by municipalities, water companies or nonprofit land conservation organizations as open space land consistent with the provisions of sections 7-131d to 7-131g, inclusive. [, for municipalities and nonprofit land conservation organizations and consistent with the provisions of section 25-37c for Class I or Class II watershed land for water companies.] Such program shall not affect the ability of any water company to reclassify or sell any land, or interest in land, which was not acquired, in whole or in part, with funds made available under the program established under section 7-131d to 7-131g, inclusive. The goal for state open space acquisition shall be three thousand acres acquired in 1999, four thousand acres acquired in 2000, four thousand acres acquired in 2001 and five thousand acres acquired in 2002 provided such acquisition program shall continue until the overall state goal of open space acquisition is achieved. The commissioner, in consultation with the Council on Environmental Quality established under section 22a-11 and private nonprofit land conservation organizations, shall prepare, and update as necessary, a comprehensive strategy for achieving the state goal and shall set an appropriate additional goal for increasing the amount of land held as open space by municipalities or by private nonprofit land conservation organizations and shall include in such strategy provisions for achieving such goal. Such strategy shall include, but not be limited to, recommendations regarding: (1) Timetables for acquisition of land by the state, (2) management of such land, (3) resources to be used for acquisition and management of such land, and (4) acquisition and maintenance of open space land by municipalities and by private entities. On or before January 1, 1998, and annually thereafter, the commissioner shall submit a report to the joint standing committee of the General Assembly having cognizance of matters relating to the environment regarding the strategy and the progress being made towards the goals.

Sec. 3. Subdivision (4) of section 12-540 of the general statutes, as amended by section 49 of public act 99-173, is repealed and the following is substituted in lieu thereof:

(4) "Dues" shall include assessment charges to members irrespective of the purpose for which made and any charges for social, athletic or sporting privileges or facilities for any period of more than six days but not including charges made for instruction or charges for special assessments made (A) for the construction or reconstruction of any social, athletic or sporting facility or any increase in charges made after the effective date of this section which increase is to be used for the acquisition of land provided such land is "farm land", "open space land" or "forest land", as defined in section 12-107b, [of the general statutes] and further provided that an application or applications pursuant to section 12-107c, 12-107d or 12-107e are made for the assessment list next following the acquisition of such land, or (B) for the construction or reconstruction of any capital addition to any such facility, or (C) furnishings or fixtures, including installation charges, for any such facility, to the extent that such furnishings or fixtures are required, by reason of the construction or reconstruction described in subdivision (A) or (B) of this subsection, for the use of such facility upon completion of such construction or reconstruction; except that, in the case of any such amount which is not expended for such construction, reconstruction, furnishings or fixtures, including installation charges, within three years after the date of payment of such amount, the exemption provided by this subsection shall cease to apply upon the expiration of such three-year period, and the club shall be liable for any tax imposed by section 12-543 in respect of such payment, as if such payment had been made on the first day following the expiration of such three-year period.

Sec. 4. (NEW) On and after the effective date of this section, any person, organization or political subdivision of the state to whom the state proposes to convey state park land, forest land or other state land held as protected open space shall execute a conservation easement or similar encumbrance in favor of the state which provides for the same restriction on development of such land as that which was in effect for such land immediately prior to such conveyance. No such state land may be conveyed without such an encumbrance.

Sec. 5. Subdivision (1) of subsection (a) of section 12-217 of the general statutes, as amended by section 39 of public act 99-173, is repealed and the following is substituted in lieu thereof:

(a) (1) In arriving at net income as defined in section 12-213, whether or not the taxpayer is taxable under the federal corporation net income tax, there shall be deducted from gross income, (A) all items deductible under the Internal Revenue Code effective and in force on the last day of the income year except (i) any taxes imposed under the provisions of this chapter which are paid or accrued in the income year and in the income year commencing January 1, 1989, and thereafter, any taxes in any state of the United States or any political subdivision of such state, or the District of Columbia, imposed on or measured by the income or profits of a corporation which are paid or accrued in the income year, and (ii) deductions for depreciation, which shall be allowed as provided in subsection (b) of this section, and (B) additionally, in the case of a regulated investment company, the sum of (i) the exempt-interest dividends, as defined in the Internal Revenue Code, and (ii) expenses, bond premium, and interest related to tax-exempt income that are disallowed as deductions under the Internal Revenue Code, and (C) in the case of a taxpayer maintaining an international banking facility as defined in the laws of the United States or the regulations of the Board of Governors of the Federal Reserve System, as either may be amended from time to time, the gross income attributable to the international banking facility, provided, no expense or loss attributable to the international banking facility shall be a deduction under any provision of this section, and (D) additionally, in the case of all taxpayers, all dividends as defined in the Internal Revenue Code effective and in force on the last day of the income year not otherwise deducted from gross income, including dividends received from a DISC or former DISC as defined in Section 992 of the Internal Revenue Code and dividends deemed to have been distributed by a DISC or former DISC as provided in Section 995 of said Internal Revenue Code, other than thirty per cent of dividends received from a domestic corporation in which the taxpayer owns less than twenty per cent of the total voting power and value of the stock of such corporation, and (E) additionally, in the case of all taxpayers, the value of any capital gain realized from the sale of any land, or interest in land, to the state, any political subdivision of the state, or to any nonprofit land conservation organization where such land is to be permanently preserved as protected open space or to a water company, as defined in section 25-32a, where such land is to be permanently preserved as protected open space or as Class I or Class II [watershed] water company land.

Sec. 6. Section 48 of public act 99-173 is repealed.

Sec. 7. This act shall take effect from its passage.

Approved June 29, 1999

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