Substitute House Bill No. 6869

Public Act No. 99-290

An Act Concerning the Uniform Valuation of Personal Property.

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

Section 1. Section 12-63 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) The present true and actual value of land classified as farm land pursuant to section 12-107c, as forest land pursuant to section 12-107d, or as open space land pursuant to section 12-107e shall be based upon its current use without regard to neighborhood land use of a more intensive nature, provided in no event shall the present true and actual value of open space land be less than it would be if such open space land comprised a part of a tract or tracts of land classified as farm land pursuant to section 12-107c. The present true and actual value of all other property shall be deemed by all assessors and boards of assessment appeals to be the fair market value thereof and not its value at a forced or auction sale.

(b) (1) For the purposes of this subsection, (A) "electronic data processing equipment" means computers, printers, peripheral computer equipment, bundled software and any computer-based equipment acting as a computer, as defined in Section 168 of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended; (B) "leased personal property" means tangible personal property which is the subject of a written or oral lease or loan on the assessment date, or any such property which has been so leased or loaned by the then current owner of such property for three or more of the twelve months preceding such assessment date; and (C) "original selling price" means the price at which tangible personal property is most frequently sold in the year that it was manufactured.

(2) Any municipality may, by ordinance, adopt the provisions of this subsection to be applicable for the assessment year commencing October first of the assessment year in which a revaluation of all real property required pursuant to section 12-62 is performed in such municipality, and for each assessment year thereafter. If so adopted, the present true and actual value of tangible personal property, other than motor vehicles, shall be determined in accordance with the provisions of this subsection. If such property is purchased, its true and actual value shall be established in relation to the cost of its acquisition, including transportation and installation, and shall reflect depreciation in accordance with the schedules set forth in subdivisions (3) to (6), inclusive, of this subsection. If such property is developed and produced by the owner of such property for a purpose other than wholesale or retail sale or lease, its true and actual value shall be established in relation to its cost of development, production and installation and shall reflect depreciation in accordance with the schedules provided in subdivisions (3) to (6), inclusive, of this subsection. The provisions of this subsection shall not apply to property owned by a public service company, as defined in section 16-1.

(3) The following schedule of depreciation shall be applicable with respect to electronic data processing equipment:

(A) Group I: Computer and peripheral hardware, including, but not limited, to personal computers, workstations, terminals, storage devices, printers, scanners, computer peripherals and networking equipment:

 

Assessment Year

Depreciated Value as

 

Following Acquisition

Percentage of

   

Acquisition Cost Basis

 

    First year

    Seventy per cent

 

    Second year

    Forty per cent

 

    Third year

    Twenty per cent

 

    Fourth year

    Ten per cent

(B) Group II: Other hardware, including, but not limited to, mini-frame and main-frame systems with an acquisition cost of more than twenty-five thousand dollars.

 

Assessment Year

Depreciated Value as

 

Following Acquisition

Percentage of

   

Acquisition Cost Basis

     
 

    First year

    Ninety per cent

 

    Second year

    Sixty per cent

 

    Third year

    Forty per cent

 

    Fourth year

    Twenty per cent

 

    Fifth year and thereafter

    Ten per cent

(4) The following schedule of depreciation shall be applicable with respect to copiers, facsimile machines, medical testing equipment, and any similar type of equipment that is not specifically defined as electronic data processing equipment, but is considered by the assessor to be technologically advanced:

 

Assessment Year

Depreciated Value as

 

Following Acquisition

Percentage of

   

Acquisition Cost Basis

     
 

    First year

    Ninety-five per cent

 

    Second year

    Eighty per cent

 

    Third year

    Sixty per cent

 

    Fourth year

    Forty per cent

 

    Fifth year and thereafter

    Twenty per cent

(5) The following schedule of depreciation shall be applicable with respect to machinery and equipment used in the manufacturing process:

 

Assessment Year

Depreciated Value as

 

Following Acquisition

Percentage of

   

Acquisition Cost Basis

     
 

    First year

    Ninety per cent

 

    Second year

    Eighty per cent

 

    Third year

    Seventy per cent

 

    Fourth year

    Sixty per cent

 

    Fifth year

    Fifty per cent

 

    Sixth year

    Forty per cent

 

    Seventh year

    Thirty per cent

 

    Eighth year and thereafter

    Twenty per cent

(6) The following schedule of depreciation shall be applicable with respect to all tangible personal property other than that described in subdivisions (3) to (5), inclusive, of this subsection:

 

Assessment Year

Depreciated Value as

 

Following Acquisition

Percentage of

   

Acquisition Cost Basis

     
 

    First year

    Ninety-five per cent

 

    Second year

    Ninety per cent

 

    Third year

    Eighty per cent

 

    Fourth year

    Seventy per cent

 

    Fifth year

    Sixty per cent

 

    Sixth year

    Fifty per cent

 

    Seventh year

    Forty per cent

 

    Eighth year and thereafter

    Thirty per cent

(7) The present true and actual value of leased personal property shall be determined in accordance with the provisions of this subdivision. Such value for any assessment year shall be established in relation to the original selling price for self manufactured property or acquisition cost for acquired property and shall reflect depreciation in accordance with the schedules provided in subdivisions (3) to (6), inclusive, of this subsection. If the assessor is unable to determine the original selling price of leased personal property, the present true and actual value thereof shall be its current selling price.

(8) With respect to any personal property which is prohibited by law from being sold, the present true and actual value of such property shall be established with respect to such property's original manufactured cost increased by a ratio the numerator of which is the total proceeds from the manufacturer's salable equipment sold and the denominator of which is the total cost of the manufacturer's salable equipment sold. Such value shall then be depreciated in accordance with the appropriate schedule in this subsection.

(9) The schedules of depreciation set forth in subdivisions (3) to (6), inclusive, of this subsection shall not be used with respect to videotapes, horses or other taxable livestock or electric cogenerating equipment.

(10) If the assessor determines that the value of any item of personal property produced by the application of the schedules set forth in this subsection do not accurately reflect the present true and actual value of such item, the assessor shall adjust such value to reflect the present true and actual value of such item.

(11) Nothing in this subsection shall prevent any taxpayer from appealing any assessment made pursuant to this subsection if such assessment does not accurately reflect the present true and actual value of any item of such taxpayer's personal property.

Sec. 2. This act shall take effect from its passage.

Approved June 15, 1999

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