PA 07-251—HB 5222

Select Committee on Housing

Planning and Development Committee

Judiciary Committee

Banks Committee

AN ACT CONCERNING THE SALE, LEASE OR TRANSFER OF MUNICIPAL PROPERTY AND LIENS FILED UNDER THE MUNICIPAL PROPERTY TAX RELIEF PROGRAM FOR SENIORS

SUMMARY: This act broadens the exceptions to a public hearing requirement for towns, established in PA 07-218, before giving final approval to the sale, lease, or transfer of town land or buildings. It excepts the sale, lease, or transfer of real property the municipality acquires by foreclosure from the requirement. PA 07-218 already excepts the following situations from the hearing requirement: (1) sales of property, other than parkland, open space, or a playground, whose fair market value is $10,000 or less and (2) lease renewals when the property's use does not change.

This act also reduces the lien amount a town can place on a property receiving local-option property tax relief for property owners over age 65 or permanently disabled. By law, the town providing the property tax relief may file a lien on the property if the owner is receiving (1) the optional property tax relief, (2) tax relief from two other programs for the elderly and disabled, and (3) the combined relief exceeds 75% of the owner's property tax liability. Prior law required the lien to be equal to the total amount of tax relief. Under the act, the lien must be equal to the amount of the tax relief that exceeds 75% of the property tax liability.

EFFECTIVE DATE: October 1, 2007

BACKGROUND

PA 07-218

This act requires towns to hold a public hearing before they give final approval to the sale, lease, or transfer of town land or buildings. Notice of the hearing must be published twice, at least two days apart, in a newspaper with general circulation in the town. The first notice must be published between 10 and 15 days before the hearing; the second must be at least two days before the hearing. The town also must conspicuously post a sign on the property.

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