AN ACT EXTENDING THE DEADLINE FOR CERTAIN TAX CREDITS AND EXEMPTIONS.

This bill gives certain taxpayers who missed deadlines for filing for property tax exemptions or qualifying for Neighborhood Assistance Act business tax credits additional time to do so and receive the exemptions or credits retroactively. It also allows a qualifying program that received Neighborhood Assistance Act donations for 2009 that exceeded the annual limit on such donations to keep the excess donations.

§ 1 — PROPERTY LOCATED IN A DISTRESSED MUNICIPALITY, TARGETED INVESTMENT COMMUNITY, OR ENTERPRISE ZONE

The bill allows a Bridgeport taxpayer to receive the following property tax exemptions for the 2007 and 2008 grand list years even though it missed the filing deadlines for the exemptions for:

1. manufacturing and service facilities located in distressed municipalities, targeted investment communities, or enterprise zones (CGS § 12-81 (59)) and

2. machinery and equipment in manufacturing or service facilities located in distressed municipalities, targeted investment communities, or enterprise zones (CGS § 12-81 (60)).

By law, property owners must apply to local assessors for these exemptions by November 1 annually. The bill waives the deadline for the Bridgeport property owners if they apply within 30 days of the bill's passage and pay the statutory late fee.

The bill requires the Bridgeport assessor to (1) verify eligibility for, and approve the exemption; (2) refund any excess taxes paid on the property; and (3) submit the request for a tax loss reimbursement to the Office of Policy and Management (OPM) secretary. Subject to the secretary's review and approval, the bill requires the state to include the required 50% tax loss reimbursement for the property in its next annual grant payment to Bridgeport for property tax losses on such property.

§ 2 — PROPERTY LEASED TO A CHARITABLE, RELIGIOUS, OR NONPROFIT ORGANIZATION

A municipality may, by ordinance, exempt real or personal property from property tax when it is leased to a charitable, religious, or nonprofit organization. To be exempt, the property must be used exclusively for the organization's purposes.

The bill allows a Middletown taxpayer who failed to file the required application for the exemption in time but who was otherwise eligible for it for the 2008 and 2009 grand list years, to apply for the exemption for those years within 30 days after the bill's effective date. The Middletown assessor must verify the taxpayer's eligibility for, and approve, the exemption, and Middletown must refund any excess taxes paid on the property.

The Neighborhood Assistance Act provides business tax credits to companies that donate to municipal and nonprofit organization programs approved by municipalities. The law limits the total contributions an eligible program may receive from companies claiming the credits to $ 150,000 per year.

The bill overrides this limit and requires the Department of Revenue Services (DRS) commissioner to approve funding in excess of $ 150,000 for the 2009 income year for an organization conducting programs approved by the city of Hartford and DRS.

It also allows a business to claim a Neighborhood Assistance Act tax credit for the 2009 tax year for certain qualifying donations if (1) it applied to DRS for approval of the qualifying donations during 2009, (2) DRS approved the donations for a tax credit, and (3) the business establishes to DRS' satisfaction that it made the donation by June 30, 2010.

The bill allows New Britain and Milford taxpayers to receive property tax exemptions for manufacturing machinery and equipment (§ 12-81 (72)) for the 2008 and 2009 grand list years, respectively, even though they missed the filing deadlines for the exemption.

By law, property owners must apply to local assessors for this exemption by November 1 annually. The bill waives the deadline for the New Britain and Milford property owners if they apply within 30 days of the bill's passage and pay the statutory late fee.

The bill requires the New Britain and Milford assessors to (1) verify eligibility for, and approve the exemptions; (2) refund any excess taxes paid on the property; and (3) submit the requests for a tax loss reimbursement to the OPM secretary. Subject to the secretary's review and approval, the bill requires the state to reimburse New Britain and Milford for their respective property tax losses on the property.

Yea

Nay

(04/05/2010)