Connecticut Seal

General Assembly

 

Governor's Bill No. 5047

February Session, 2016

 

LCO No. 643

 

*00643__________*

Referred to Committee on FINANCE, REVENUE AND BONDING

 

Introduced by:

 

REP. SHARKEY, 88th Dist.

REP. ARESIMOWICZ, 30th Dist.

SEN. LOONEY, 11th Dist.

SEN. DUFF, 25th Dist.

 

AN ACT CONCERNING EXEMPTIONS UNDER THE PROPERTY TAX.

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

Section 1. Section 12-81 of the 2016 supplement to the general statutes is amended by adding subdivision (78) as follows (Effective October 1, 2016, and applicable to assessment years commencing on or after October 1, 2016):

(NEW) (78) Personal property owned or leased by a business organization whose personal property has a total assessed value of less than ten thousand dollars. Any person claiming the exemption provided under this subdivision for any assessment year shall annually, on or before the first day of November, file a written application for such exemption with the assessor or board of assessors in the town in which such personal property is located. Failure to file such an application in the manner and form provided by such assessor or board of assessors or within the time limit prescribed shall constitute a waiver of the right to the exemption for the assessment year.

Sec. 2. (NEW) (Effective October 1, 2016, and applicable to assessment years commencing on or after October 1, 2016) (a) Any hospital claiming an exemption from the property tax on personal property pursuant to subdivision (7) or (16) of section 12-81 of the general statutes as amended by this act, with respect to any taxable year shall submit a declaration of the tangible personal property, as described in sections 12-41 and 12-43 of the general statutes, and a statement in accordance with section 12-49 of the general statutes. Such declaration shall be submitted on or before October first or the extended filing date granted pursuant to section 12-42 of the general statutes, as applicable, to the assessor or board of assessors of the municipality in which the hospital property claimed to be exempt is located. Commercial or financial information in any declaration filed under this section shall not be open to public inspection. The assessor or board of assessors, as applicable, shall add taxable property to any such declaration if so required by subsection (b) of section 12-53 of the general statutes. Exemptions claimed pursuant to subdivision (7) or (16) of section 12-81 of the general statutes, as amended by this act, shall be deemed waived for any assessment year in which a hospital fails to file a declaration in the manner prescribed by this section. For the purposes of this section, "personal property" includes all property subject to tax pursuant to section 12-71 of the general statutes and "hospital" means any (1) nonprofit general hospital facility, (2) ambulatory surgical center as defined in section 12-263i of the general statutes, (3) freestanding chronic disease hospital, or (4) any urgent care facility that operates for at least twelve hours a day. "Hospital" does not include any such facility, center or hospital operated by the federal government or the state of Connecticut or any political subdivision thereof.

(b) Any assessor in receipt of a declaration filed pursuant to subsection (a) of this section shall determine the present true and actual value of such declared property pursuant to the requirements set forth in sections 12-63 and 12-71 of the general statutes. On or before January thirty-first, annually, said assessor shall submit a report to the Secretary of the Office of Policy and Management on such form as the secretary may prescribe detailing the present true and actual value of such property, as determined pursuant to the provisions of this subsection, for the assessment year commencing on the October first immediately preceding.

(c) On or before March fifteenth, annually, the secretary shall submit a report to the joint standing committee of the General Assembly having cognizance of matters concerning finance, revenue and bonding, in accordance with section 11-4a of the general statutes, detailing the present true and actual value, by town, of the personal property declared pursuant to this section.

Sec. 3. Section 12-42 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2016, and applicable to assessment years commencing on or after October 1, 2016):

The assessors may grant an extension of not more than forty-five days to file the declaration required pursuant to section 12-41 or section 2 of this act upon determination that there is good cause. If no declaration is filed, the assessors shall fill out a declaration including all property which the assessors have reason to believe is owned by the person for whom such declaration is prepared, liable to taxation, at the percentage of its actual valuation, as determined by the assessors in accordance with the provisions of sections 12-63 and 12-71, from the best information they can obtain, and add thereto twenty-five per cent of such assessment. When the first day of November is a Saturday or Sunday, the declaration may be filed or postmarked on the next business day following.

Sec. 4. Subdivision (7) of section 12-81 of the 2016 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2016, and applicable to assessment years commencing on or after October 1, 2016):

(7) (A) Subject to the provisions of sections 12-87, [and] 12-88 and section 2 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. 5. Subdivision (16) of section 12-81 of the 2016 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2016, and applicable to assessment years commencing on or after October 1, 2016):

(16) Subject to the provisions of section 12-88 and section 2 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

October 1, 2016, and applicable to assessment years commencing on or after October 1, 2016

12-81

Sec. 2

October 1, 2016, and applicable to assessment years commencing on or after October 1, 2016

New section

Sec. 3

October 1, 2016, and applicable to assessment years commencing on or after October 1, 2016

12-42

Sec. 4

October 1, 2016, and applicable to assessment years commencing on or after October 1, 2016

12-81(7)

Sec. 5

October 1, 2016, and applicable to assessment years commencing on or after October 1, 2016

12-81(16)

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.]