Connecticut Seal

General Assembly

Amendment

 

January Session, 2015

LCO No. 7413

   
 

*HB0696507413HDO*

Offered by:

 

REP. SHARKEY, 88th Dist.

REP. MILLER, 36th Dist.

REP. D 'AGOSTINO, 91st Dist.

 

To: Subst. House Bill No. 6965

File No. 666

Cal. No. 446

"AN ACT CONCERNING THE PRESERVATION OF MUNICIPAL TAX BASES. "

Strike everything after the enacting clause and substitute the following in lieu thereof:

"Section 1. (NEW) (Effective from passage and applicable to assessment years commencing on and after October 1, 2015) (a) (1) Notwithstanding any provision of the general statutes, except subdivision (8) of section 12-81 of the general statutes, and notwithstanding any special act or any municipal charter, any property, real or personal, that was taxable by a municipality and used primarily for medical services that is held by or on behalf of the following entities, as defined or described in section 12-20a of the general statutes, as amended by this act, shall be taxable by a municipality in accordance with the provisions of chapters 201, 203 and 204 of the general statutes: (A) A nonprofit general hospital facility, or (B) a freestanding chronic disease hospital, and (2) notwithstanding any provision of the general statutes, except subdivision (8) of section 12-81 of the general statutes, and notwithstanding any special act or any municipal charter, any property, real or personal, that is currently taxable by a municipality and used primarily for medical services and is acquired by or on behalf of the following entities, as defined or described in section 12-20a of the general statutes, as amended by this act, shall be taxable by a municipality in accordance with the provisions of chapters 201, 203 and 204 of the general statutes: (A) A nonprofit general hospital facility, or (B) a freestanding chronic disease hospital.

(b) Notwithstanding any provision of the general statutes, except subdivision (8) of section 12-81 of the general statutes, and notwithstanding any special act or any municipal charter, any residential real property, excluding a dormitory, intended for use or used as student housing, that is held by or on behalf of a private nonprofit institution of higher learning, as defined in section 12-20a of the general statutes, as amended by this act, shall be taxable by a municipality in accordance with the provisions of chapters 201, 203 and 204 of the general statutes. For purposes of this subsection: (1) "Residential real property" means a building containing one or more dwelling units, as defined in section 7-148hh of the general statutes, and (2) "dormitory" means any building with twenty or more dwelling units intended for use or used as student housing by a private nonprofit institution of higher learning, as defined in section 12-20a of the general statutes, as amended by this act.

Sec. 2. Subsection (a) of section 12-20a of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) [On] Until the fiscal year commencing July 1, 2017, on or before January first, annually, the Secretary of the Office of Policy and Management shall determine the amount due to each municipality in the state, in accordance with this section, as a state grant in lieu of taxes with respect to real property owned by any private nonprofit institution of higher learning or any nonprofit general hospital facility or freestanding chronic disease hospital or an urgent care facility that operates for at least twelve hours a day and that had been the location of a nonprofit general hospital for at least a portion of calendar year 1996 to receive payments in lieu of taxes for such property, exclusive of any such facility operated by the federal government, except a campus of the United States Department of Veterans Affairs Connecticut Healthcare Systems, or the state of Connecticut or any subdivision thereof. As used in this section "private nonprofit institution of higher learning" means any such institution, as defined in subsection (a) of section 10a-34, or any independent institution of higher education, as defined in subsection (a) of section 10a-173, that is engaged primarily in education beyond the high school level, and offers courses of instruction for which college or university-level credit may be given or may be received by transfer, the property of which is exempt from property tax under any of the subdivisions of section 12-81, as amended by this act; "nonprofit general hospital facility" means any such facility that is used primarily for the purpose of general medical care and treatment, exclusive of any hospital facility used primarily for the care and treatment of special types of disease or physical or mental conditions; and "freestanding chronic disease hospital" means a facility that provides for the care and treatment of chronic diseases, excluding any such facility having an ownership affiliation with and operated in the same location as a chronic and convalescent nursing home.

Sec. 3. Subdivision (7) of section 12-81 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015, and applicable to assessment years commencing on or after October 1, 2015):

(7) (A) Subject to the provisions of sections 12-87 and 12-88 and section 1 of this act, the real property of, or held in trust for, a corporation organized exclusively for scientific, educational, literary, historical or charitable purposes or for two or more such purposes and used exclusively for carrying out one or more of such purposes or for the purpose of preserving open space land, as defined in section 12-107b, for any of the uses specified in said section, that is owned by any such corporation, and the personal property of, or held in trust for, any such corporation, provided (i) any officer, member or employee thereof does not receive or at any future time shall not receive any pecuniary profit from the operations thereof, except reasonable compensation for services in effecting one or more of such purposes or as proper beneficiary of its strictly charitable purposes, and (ii) in 1965, and quadrennially thereafter, a statement shall be filed on or before the first day of November with the assessor or board of assessors of any town, consolidated town and city or consolidated town and borough, in which any of its property claimed to be exempt is situated. Such statement shall be filed on a form provided by such assessor or board of assessors. The real property shall be eligible for the exemption regardless of whether it is used by another corporation organized exclusively for scientific, educational, literary, historical or charitable purposes or for two or more such purposes;

(B) On and after July 1, 1967, housing subsidized, in whole or in part, by federal, state or local government and housing for persons or families of low and moderate income shall not constitute a charitable purpose under this section. As used in this subdivision, "housing" shall not include real property used for temporary housing belonging to, or held in trust for, any corporation organized exclusively for charitable purposes and exempt from taxation for federal income tax purposes, the primary use of which property is one or more of the following: (i) An orphanage; (ii) a drug or alcohol treatment or rehabilitation facility; (iii) housing for homeless individuals, mentally or physically handicapped individuals or persons with intellectual disability, or for victims of domestic violence; (iv) housing for ex-offenders or for individuals participating in a program sponsored by the state Department of Correction or Judicial Branch; and (v) short-term housing operated by a charitable organization where the average length of stay is less than six months. The operation of such housing, including the receipt of any rental payments, by such charitable organization shall be deemed to be an exclusively charitable purpose;

Sec. 4. Subdivision (16) of section 12-81 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015, and applicable to assessment years commencing on or after October 1, 2015):

(16) Subject to the provisions of section 12-88 and section 1 of this act, all property of, or held in trust for, any Connecticut hospital society or corporation or sanatorium, provided (A) no officer, member or employee thereof receives or, at any future time, shall receive any pecuniary profit from the operations thereof, except reasonable compensation for services in the conduct of its affairs, and (B) in 1967, and quadrennially thereafter, a statement shall be filed by such hospital society, corporation or sanatorium on or before the first day of November with the assessor or board of assessors of any town, consolidated town and city or consolidated town and borough, in which any of its property claimed to be exempt is situated. Such statement shall be filed on a form provided by such assessor or board of assessors; "

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

Section 1

from passage and applicable to assessment years commencing on and after October 1, 2015

New section

Sec. 2

from passage

12-20a(a)

Sec. 3

October 1, 2015, and applicable to assessment years commencing on or after October 1, 2015

12-81(7)

Sec. 4

October 1, 2015, and applicable to assessment years commencing on or after October 1, 2015

12-81(16)