PA 08-130—sHB 5599

Energy and Technology Committee

Finance, Revenue and Bonding Committee

AN ACT CONCERNING THE TAXATION OF TELECOMMUNICATIONS COMPANY PROPERTY AND THE TIMELY FILING OF DECLARATIONS

SUMMARY: 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 act requires them to list the property on a town-by-town basis. It also requires the companies to submit to each relevant municipality a list of their personal property located in or allocated to the municipality.

The act allows any municipality to examine audits of the companies submissions conducted by DRS or OPM (although OPM is not authorized to conduct audits).

By law, telecommunications companies and other businesses must file annual personal property declarations. The law subjects entities that fail to file a declaration by November 1 (or the deadline set by the assessor if an extension is granted) to a penalty of 25% of the assessment of the property on the list. The act 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 filing provisions.

BACKGROUND

Property Tax on Telecommunications Companies

By law, the personal property of telephone companies is assessed at a statewide 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.

OLR Tracking: KM: SNE: ts