Raised Bill No. 414
February Session, 2016
LCO No. 2618
Referred to Committee on FINANCE, REVENUE AND BONDING
AN ACT CONCERNING THE TAX ON COLLEGE PROPERTY.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Subdivision (8) of section 12-81 of the 2016 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2016, and applicable to assessment years commencing on or after October 1, 2016):
(8) (A) The funds and estate which have been or may be granted, provided by the state, or given by any person or persons to the Trustees of the Berkeley Divinity School, the board of trustees of Connecticut College for Women, the Hartford Seminary Foundation, Sheffield Scientific School, Trinity College, Wesleyan University or The President and Fellows of Yale College in New Haven, and by them respectively invested and held for the use of such institutions, with the income thereof. [; provided none of said corporations shall hold in this state]
(B) Such exemption shall not apply to any (i) real estate [free from taxation] affording an annual income of more than six thousand dollars; or (ii) real estate where such institution holds real estate consisting of land, buildings and equipment valuing more than two billion dollars in the aggregate and the activities on such real estate afford the institution an annual income of more than six thousand dollars. Such [exemption] exemption shall not apply to any real estate which said Trustees of the Berkeley Divinity School own, control or hold in trust, and which is situated in the city of Middletown. For the purposes of this section, "activities" means (I) rents or other payments for the use of all or any part of real estate exempt from taxation pursuant to subsection (a) of this section, or any fixtures or equipment permanently installed thereon, received or due from any for-profit entity, but not including individuals for personal use; (II) fees collected for admission or use of any sports or entertainment facility located on such real estate, except for fees collected for admission or use from faculty, employees or enrolled students, or events in which substantially all of the athletes or performers are faculty or enrolled students; (III) fees, charges or royalties for any goods designed, produced, manufactured or generated on all or any part of such real estate, provided such goods are for sale to the public and to for-profit entities; and (IV) fees or charges for any services rendered on, or from, all or any part, of such real estate to the public or any for-profit entity; and "for-profit entity" means corporations, partnerships, joint ventures, sole proprietorships or any other business entity.
(C) No other provision of this section concerning exemption of property used for educational purposes shall be construed to affect any provision of this subdivision;
This act shall take effect as follows and shall amend the following sections:
October 1, 2016, and applicable to assessment years commencing on or after October 1, 2016
Statement of Purpose:
To tax the property of certain colleges where activities conducted thereon generate at least six thousand dollars in revenue in a taxable year.
[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.]