OLR Bill Analysis
AN ACT CONCERNING THE TAXATION OF TELECOMMUNICATIONS COMPANY PROPERTY AND THE TIMELY FILING OF DECLARATIONS.
By law, telecommunications companies subject to the statewide personal property tax must annually file a list of their taxable personal property with the Department of Revenue Services (DRS) and the Office of Policy and Management (OPM). This bill requires that the property be listed on a town-by-town basis. The bill also requires the companies to submit to the relevant municipalities a list of the personal property they own that is located in or allocated to the municipality.
By law, DRS and OPM can audit the companies' submissions. The bill allows any municipality to examine these audits.
Under current law, the failure to file a declaration of personal property by November 1 (or the deadline set by the assessor if an extension is granted) is subject to a penalty of 25% of the assessment of the property on the list. The bill specifies that a declaration postmarked by the filing deadline is not delinquent and thus not subject to the penalty.
EFFECTIVE DATE: Upon passage and applicable to declarations due on or after November 1, 2008 for the penalty provision; July 1, 2008 for the telecommunications companies provisions.
Property Tax on Telecommunications Companies
By law, the personal property of telephone companies is assessed at a statewide mill rate of 47 mills and subject to uniform depreciation rules. Other telecommunications companies can opt for this treatment. The revenue raised is distributed to the towns where the companies own property.
Energy and Technology Committee