Connecticut Seal

General Assembly

 

Substitute Bill No. 5399

    February Session, 2016

 

*_____HB05399HSG___031016____*

AN ACT CONCERNING STATE REIMBURSEMENT FOR TAX ABATEMENTS AND PAYMENTS IN LIEU OF TAXES.

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

Section 1. Section 8-215 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) Any municipality may by ordinance provide for the abatement in part or in whole of real property taxes on any housing solely for low or moderate-income persons or families and may by ordinance classify the property on which such housing is situated as property used for housing solely for low or moderate-income persons or families. Such tax abatement shall be used for one or more of the following purposes: (1) To reduce rents below the levels which would be achieved in the absence of such abatement and to improve the quality and design of such housing; (2) to effect occupancy of such housing by persons and families of varying income levels within limits determined by the Commissioner of Housing by regulation; or (3) to provide necessary related facilities or services in such housing. Such abatement shall be made pursuant to a contract between the municipality and the owner of any such housing, which contract shall provide the terms of such abatement, that moneys equal to the amount of such abatement shall be used for any one or more of the purposes herein stated, and that such abatement shall terminate at any time when such housing is not solely for low or moderate-income persons or families.

(b) A municipality shall abate the real property taxes, for the period commencing July 1, 2016, and ending June 30, 2018, on any real property for which a tax abatement was granted pursuant to subsection (a) of this section in the fiscal year ending June 30, 2015, except no abatement shall (1) exceed the value of the tax abatement granted pursuant to subsection (a) of this section in the fiscal year ending June 30, 2015, (2) be granted if the housing no longer fulfills the purposes stated in subsection (a) of this section, or (3) be granted to the extent to which funds are made available for such taxes by an agency or department of the United States government.

Sec. 2. Section 8-71 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

In lieu of real property taxes, special benefit assessments and sewerage system use charges otherwise payable to such municipality, except in such municipalities as, by special act or charter, on May 20, 1957, had a sewer use charge, an authority shall pay each year to the municipality in which any of its moderate rental housing projects are located a sum to be determined by the municipality, with the approval of the Commissioner of Housing, not in excess of twelve and one-half per cent of the shelter rent per annum for each occupied dwelling unit in any such housing project; except that the amount of such payment shall not be so limited in any case where funds are made available for such payment by an agency or department of the United States government. [, but no] No payment shall exceed the amount of taxes which would be paid on the property were the property not exempt from taxation. For the period commencing July 1, 2016, and ending June 30, 2018, each municipality that has received a grant-in-aid pursuant to section 8-216 in the fiscal year ending June 30, 2015, shall waive any payment required pursuant to this section, except that no waiver shall be required in any case where funds are made available for such payment by an agency or department of the United States government.

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

Section 1

from passage

8-215

Sec. 2

from passage

8-71

Statement of Legislative Commissioners:

In section 2, the effective date was changed for consistency.

HSG

Joint Favorable Subst.