Connecticut Seal

General Assembly

 

Governor's Bill No. 6387

January Session, 2011

 

LCO No. 3530

 

*03530__________*

Referred to Committee on Finance, Revenue and Bonding

 

Introduced by:

 

REP. DONOVAN, 84th Dist.

REP. SHARKEY, 88th Dist.

SEN. WILLIAMS, 29th Dist.

SEN. LOONEY, 11th Dist.

 

AN ACT CONCERNING PERSONAL PROPERTY TAX EXEMPTIONS.

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

Section 1. Section 12-71 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011, and applicable to assessment years commencing on or after October 1, 2011):

(a) All goods, chattels and effects or any interest therein, including any interest in a leasehold improvement classified as other than real property, belonging to any person who is a resident in this state, shall be listed for purposes of property tax in the town where such person resides, subject to the provisions of sections 12-41, 12-43 and 12-59. Any such property belonging to any nonresident shall be listed for purposes of property tax as provided in section 12-43. Aircraft shall be listed for purposes of the property tax in accordance with subsection (e) of this section. Motor vehicles, [and] snowmobiles and vessels shall be listed for purposes of the property tax in accordance with subsection (f) of this section. For purposes of this section, "vessels" has the same meaning as in section 15-127.

(b) Except as otherwise provided by the general statutes, property subject to this section shall be valued at the same percentage of its then actual valuation as the assessors have determined with respect to the listing of real estate for the same year, except that any antique, rare or special interest motor vehicle, as defined in section 14-1, shall be assessed at a value of not more than five hundred dollars. The owner of such antique, rare or special interest motor vehicle may be required by the assessors to provide reasonable documentation that such motor vehicle is an antique, rare or special interest motor vehicle, provided any motor vehicle for which special number plates have been issued pursuant to section 14-20 shall not be required to provide any such documentation. The provisions of this section shall not include money or property actually invested in merchandise or manufacturing carried on out of this state or machinery or equipment which would be eligible for exemption under subdivision (72) of section 12-81 once installed and which cannot begin or which has not begun manufacturing, processing or fabricating; or which is being used for research and development, including experimental or laboratory research and development, design or engineering directly related to manufacturing or being used for the significant servicing, overhauling or rebuilding of machinery and equipment for industrial use or the significant overhauling or rebuilding of other products on a factory basis or being used for measuring or testing or metal finishing or in the production of motion pictures, video and sound recordings.

(c) Upon payment of the property tax assessed with respect to any property referred to in this section, owned by a resident or nonresident of this state, which is currently used or intended for use in relation to construction, building, grading, paving or similar projects, including, but not limited to, motor vehicles, bulldozers, tractors and any trailer-type vehicle, excluding any such equipment weighing less than five hundred pounds, and excluding any motor vehicle subject to registration pursuant to chapter 246 or exempt from such registration by section 14-34, the town in which such equipment is taxed shall issue, at the time of such payment, for display on a conspicuous surface of each such item of equipment for which such tax has been paid, a validation decal or sticker, identifiable as to the year of issue, which will be presumptive evidence that such tax has been paid in the appropriate town of the state.

(d) (1) Personal property subject to taxation under this chapter shall not include computer software, except when the cost thereof is included, without being separately stated, in the cost of computer hardware. "Computer software" shall include any program or routine used to cause a computer to perform a specific task or set of tasks, including without limitation, operational and applicational programs and all documentation related thereto.

(2) The provisions of subdivision (1) of this subsection shall be applicable (A) to the assessment year commencing October 1, 1988, and each assessment year thereafter, and (B) to any assessment of computer software made after September 30, 1988, for any assessment year commencing before October 1, 1988.

(3) Nothing contained in this subsection shall create any implication related to liability for property tax with respect to computer software prior to July 1, 1989.

(4) A certificate of correction in accordance with section 12-57 shall not be issued with respect to any property described in subdivision (1) of this subsection for any assessment year commencing prior to October 1, 1989.

(e) [For assessment years commencing on or after October 1, 1992, each municipality shall exempt aircraft, as defined in section 15-34, from the provisions of this chapter.] Any aircraft registered with the Department of Transportation pursuant to section 13b-39a, as amended by this act, and subject to taxation in accordance with the provisions of this section and section 3 of this act, shall be set in the list of the town where the aircraft is based or primarily used, as determined in accordance with section 13b-39a, as amended by this act. For purposes of this section, "aircraft" has the same meaning as in section 15-34.

(f) (1) Property subject to taxation under this chapter shall include each registered and unregistered motor vehicle and snowmobile that, in the normal course of operation, most frequently leaves from and returns to or remains in a town in this state, and any other motor vehicle or snowmobile located in a town in this state, which motor vehicle or snowmobile is not used or is not capable of being used.

(2) Any motor vehicle or snowmobile registered in this state subject to taxation in accordance with the provisions of this subsection shall be set in the list of the town where such vehicle in the normal course of operation most frequently leaves from and returns to or in which it remains. It shall be presumed that any such motor vehicle or snowmobile most frequently leaves from and returns to or remains in the town in which the owner of such vehicle resides, unless a provision of this subsection otherwise expressly provides. Any vessel required to be registered as provided in chapter 268 and subject to taxation in accordance with the provisions of this section and section 2 of this act, shall be set in the list of the town where the owner of such vessel resides, unless a provision of this subsection otherwise provides. As used in this subsection, "the town in which the owner of such vehicle or vessel resides" means the town in this state where (A) the owner, if an individual, has established a legal residence consisting of a true, fixed and permanent home to which such individual intends to return after any absence, or (B) the owner, if a company, corporation, limited liability company, partnership, firm or any other type of public or private organization, association or society, has an established site for conducting the purposes for which it was created. In the event such an entity resides in more than one town in this state, it shall be subject to taxation by each such town with respect to any registered or unregistered motor vehicle, [or] snowmobile or vessel that most frequently leaves from and returns to or remains in such town.

(3) Any motor vehicle or vessel owned by a nonresident of this state shall be set in the list of the town where such vehicle or vessel in the normal course of operation most frequently leaves from and returns to or in which it remains. If such vehicle or vessel in the normal course of operation most frequently leaves from and returns to or remains in more than one town, it shall be set in the list of the town in which such vehicle or vessel is located for the three or more months preceding the assessment day in any year, except that, if such vehicle or vessel is located in more than one town for three or more months preceding the assessment day in any year, it shall be set in the list of the town where it is located for the three months or more in such year nearest to such assessment day. In the event a motor vehicle or vessel owned by a nonresident is not located in any town for three or more of the months preceding the assessment day in any year, such vehicle or vessel shall be set in the list of the town where such vehicle or vessel is located on such assessment day.

(4) Notwithstanding any provision of subdivision (2) of this subsection: (A) Any registered motor vehicle that is assigned to an employee of the owner of such vehicle for the exclusive use of such employee and which, in the normal course of operation most frequently leaves from and returns to or remains in such employee's town of residence, shall be set in the list of the town where such employee resides; (B) any registered motor vehicle that is being operated, pursuant to a lease, by a person other than the owner of such vehicle, or such owner's employee, shall be set in the list of the town where the person who is operating such vehicle pursuant to said lease resides; (C) any registered motor vehicle designed or used for recreational purposes, including, but not limited to, a camp trailer, camper or motor home, shall be set in the list of the town such vehicle, in the normal course of its operation for camping, travel or recreational purposes in this state, most frequently leaves from and returns to or the town in which it remains. If such a vehicle is not used in this state in its normal course of operation for camping, travel or recreational purposes, such vehicle shall be set in the list of the town in this state in which the owner of such vehicle resides; and (D) any registered motor vehicle that is used or intended for use for the purposes of construction, building, grading, paving or similar projects, or to facilitate any such project, shall be set in the list of the town in which such project is situated if such vehicle is located in said town for the three or more months preceding the assessment day in any year, provided (i) if such vehicle is located in more than one town in this state for three or more months preceding the assessment day in any year, such vehicle shall be set in the list of the town where it is located for the three months or more in such year nearest to such assessment day, and (ii) if such vehicle is not located in any town for three or more of the months preceding the assessment day in any year, such vehicle shall be set in the list of the town where such vehicle is located on such assessment day.

(5) The owner of a motor vehicle subject to taxation in accordance with the provisions of subdivision (4) of this subsection in a town other than the town in which such owner resides may register such vehicle in the town in which such vehicle is subject to taxation.

(6) Information concerning any vehicle subject to taxation in a town other than the town in which it is registered may be included on any declaration or report filed pursuant to section 12-41, 12-43 or 12-57a. If a motor vehicle or snowmobile is registered in a town in which it is not subject to taxation, pursuant to the provisions of subdivision (4) of this section, the assessor of the town in which such vehicle is subject to taxation shall notify the assessor of the town in which such vehicle is registered of the name and address of the owner of such motor vehicle or snowmobile, the vehicle identification number and the town in which such vehicle is subject to taxation. The assessor of the town in which said vehicle is registered and the assessor of the town in which said vehicle is subject to taxation shall cooperate in administering the provisions of this section concerning the listing of such vehicle for property tax purposes.

Sec. 2. (NEW) (Effective July 1, 2011, and applicable to assessment years commencing on or after October 1, 2011) (a) On or before October thirty-first each year, the Commissioner of Motor Vehicles shall compile, publish and distribute to assessors in each municipality (1) a list of values of vessels set in the list of each municipality that are registered with the Department of Motor Vehicles, and (2) a memorandum instructing such assessors how to value unregistered vessels. Such list and memorandum shall be used by such assessors in determining the assessed value of vessels for purposes of property taxation. For purposes of this section, "vessels" has the same meaning as in section 15-127 of the general statutes.

(b) The amount of tax applicable with respect to any vessel subject to property tax under section 12-71 of the general statutes, as amended by this act, shall be determined by multiplying seventy per cent of the value of such vessel, as determined under subsection (a) of this section, by a mill rate of twenty mills.

Sec. 3. (NEW) (Effective July 1, 2011, and applicable to assessment years commencing on or after October 1, 2011) (a) On or before October thirty-first each year, the Commissioner of Transportation shall compile, publish and distribute to assessors in each municipality a list of values of aircraft set in the list of each municipality which shall be used by such assessors in determining the assessed value of aircraft for purposes of property taxation. For purposes of this section, "aircraft" has the same meaning as in section 15-34 of the general statutes.

(b) The amount of tax applicable with respect to any aircraft subject to property tax under section 12-71 of the general statutes, as amended by this act, shall be determined by multiplying seventy per cent of the value of such aircraft, as determined under subsection (a) of this section, by a mill rate of twenty mills.

Sec. 4. Section 13b-39b of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011):

The Department of Transportation shall prepare and distribute to each municipality in which aircraft are based or primarily used forms and decals for the registration of aircraft and the renewal of such registrations. The registration forms shall contain such information as the Commissioner of Transportation may prescribe, including, but not limited to, information concerning (1) the form and identity of ownership, including information as to whether such ownership is by an individual, partnership, corporation or other entity, (2) the type of aircraft, including the year of manufacture, the manufacturer, the model and the certified gross weight, (3) the Federal Aviation Certificate number and (4) the location at which such aircraft is based or primarily used in this state. Each municipality shall designate a municipal registration official who may be an official or employee of the municipality or of any airport facility, heliport or seaplane base located within the municipality, to perform the duties of registration of aircraft as set forth in sections 13b-39a to [13b-39h] 13b-39f, inclusive, as amended by this act, and shall furnish, in writing, the name, address and telephone number of each such official. The municipality shall immediately notify the commissioner upon any changes relative to the municipal registration official.

Sec. 5. Section 13b-39g of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011):

Each municipality [which] that issues and renews registrations for aircraft in accordance with sections 13b-39a to [13b-39h] 13b-39f, inclusive, as amended by this act, may retain for its own use and purposes [, as a grant in lieu of property taxes,] all revenue received from the receipt of aircraft registration fees. Each such participating municipality shall furnish the commissioner with such reports concerning the total amount of fees received pursuant to sections 12-71, as amended by this act, and 13b-39a to [13b-39h] 13b-39f, inclusive, as amended by this act, the number of registrations issued, the names of registrants and the descriptions of aircraft registered.

Sec. 6. Subsection (b) of section 15-144 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011):

(b) (1) The owner shall pay a fee to the Commissioner of Motor Vehicles for deposit with the State Treasurer for each vessel so numbered or registered in accordance with the following schedule and subdivisions of this subsection:

T1

Overall Length

Overall Length

T2

at least

less than

fee

at least

less than

fee

T3

(feet)

(feet)

 

(feet)

(feet)

 

T4

 

    12

$ 7.50

    40

    41

$270.00

T5

    12

    13

11.25

    41

    42

292.50

T6

    13

    14

15.00

    42

    43

315.00

T7

    14

    15

18.75

    43

    44

322.50

T8

    15

    16

22.50

    44

    45

330.00

T9

    16

    17

30.00

    45

    46

337.50

T10

    17

    18

37.50

    46

    47

345.00

T11

    18

    19

45.00

    47

    48

352.50

T12

    19

    20

52.50

    48

    49

360.00

T13

    20

    21

60.00

    49

    50

367.50

T14

    21

    22

67.50

    50

    51

375.00

T15

    22

    23

75.00

    51

    52

382.50

T16

    23

    24

82.50

    52

    53

390.00

T17

    24

    25

90.00

    53

    54

397.50

T18

    25

    26

97.50

    54

    55

405.00

T19

    26

    27

105.00

    55

    56

412.50

T20

    27

    28

112.50

    56

    57

420.00

T21

    28

    29

120.00

    57

    58

427.50

T22

    29

    30

127.50

    58

    59

435.00

T23

    30

    31

135.00

    59

    60

442.50

T24

    31

    32

142.50

    60

    61

450.00

T25

    32

    33

150.00

    61

    62

457.50

T26

    33

    34

157.50

    62

    63

465.00

T27

    34

    35

165.00

    63

    64

472.50

T28

    35

    36

172.50

    64

    65

480.00

T29

    36

    37

180.00

    65 and over

525.00

T30

    37

    38

202.50

     

T31

    38

    39

225.00

     

T32

    39

    40

247.50

     

For purposes of this schedule "overall length" is the horizontal distance between the foremost part of the stem and the aftermost part of the stern, excluding bowsprits, bumpkins, rudders, outboard motor brackets and similar fittings or attachments. (2) The fee payable under this subsection with respect to any vessel used primarily for purposes of commercial fishing shall not exceed twenty-five dollars, provided in the tax year of the owner of such vessel ending immediately preceding the date of registration, not less than fifty per cent of the adjusted gross income of such owner as determined for purposes of the federal income tax is derived from commercial fishing, subject to proof satisfactory to the Commissioner of Motor Vehicles. (3) The fee payable under this subsection with respect to any vessel constructed primarily of wood, the construction of which is completed not less than fifteen years prior to the date such fee is paid, shall be in an amount equal to fifty per cent of the fee otherwise payable, or if such construction is completed not less than twenty-five years prior to the date such fee is paid, such fee shall be in an amount equal to twenty-five per cent of the fee otherwise payable. (4) Fees payable under this subsection shall not be required with respect to (A) any vessel owned by a flotilla of the United States Coast Guard Auxiliary or owned by a nonprofit corporation acting on behalf of such a flotilla, provided no more than two vessels from any such flotilla or nonprofit corporation shall be granted such an exemption and (B) any vessel built by students in an educational institution and used for the purposes of such institution, including such research as may require the use of such vessel. (5) The fee payable under this subsection with respect to any pontoon boat, exclusive of any houseboat, shall be forty dollars. (6) The fee payable under this subsection with respect to any canoe with a motor or any vessel owned by a nonprofit organization shall be seven dollars and fifty cents. (7) The fee payable under this subsection with respect to any vessel less than fifteen feet in length equipped with a motor the horsepower of which is less than fifteen, shall be seven dollars and fifty cents. (8) The owner of any vessel used actively, as required under this subdivision, in operational activities of the United States Coast Guard Auxiliary shall not be required to pay the applicable fee in accordance with the schedule in this subsection, provided (A) if the applicable fee under the schedule for such vessel is greater than one hundred eighty dollars, the owner shall be required to pay the amount of fee in excess of one hundred eighty dollars and (B) the owner shall not be entitled to exemption from the applicable fee as allowed in this subdivision for any vessel registration year unless the application for registration of such vessel includes a statement, certified by an officer of the United States Coast Guard, that in the preceding year such vessel was used actively in not less than three separate operational activities of the United States Coast Guard Auxiliary. (9) Beginning October 1, 2011, and annually thereafter, all revenue received by the state for the twelve-month period from November first to October thirty-first, inclusive, in fees for the numbering and registration of vessels under this section shall be deposited with the Treasurer who shall deposit such revenue in the General Fund.

Sec. 7. Subsection (b) of section 13b-39a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011):

(b) The Commissioner of Transportation, subject to the provisions of chapter 54, shall adopt such regulations as deemed necessary by said commissioner to implement the provisions of section 12-71, as amended by this act, this section and sections 13b-39b to [13b-39h] 13b-39f, inclusive, as amended by this act.

Sec. 8. Sections 13b-39h, 15-155, 15-155d and 15-155e of the general statutes are repealed. (Effective July 1, 2011)

Sec. 9. Subdivision (64) of section 12-81 of the general statutes is repealed. (Effective July 1, 2011, and applicable to assessment years commencing on or after October 1, 2011)

This act shall take effect as follows and shall amend the following sections:

Section 1

July 1, 2011, and applicable to assessment years commencing on or after October 1, 2011

12-71

Sec. 2

July 1, 2011, and applicable to assessment years commencing on or after October 1, 2011

New section

Sec. 3

July 1, 2011, and applicable to assessment years commencing on or after October 1, 2011

New section

Sec. 4

July 1, 2011

13b-39b

Sec. 5

July 1, 2011

13b-39g

Sec. 6

July 1, 2011

15-144(b)

Sec. 7

July 1, 2011

13b-39a(b)

Sec. 8

July 1, 2011

Repealer section

Sec. 9

July 1, 2011, and applicable to assessment years commencing on or after October 1, 2011

Repealer section

Statement of Purpose:

To implement the Governor's budget recommendations.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]