Connecticut Seal

General Assembly

File No. 396

    January Session, 2017

House Bill No. 7185

House of Representatives, April 4, 2017

The Committee on Planning and Development reported through REP. LEMAR of the 96th Dist., Chairperson of the Committee on the part of the House, that the bill ought to pass.

AN ACT EXEMPTING LEASED MUNICIPAL PROPERTY FROM TAXATION.

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

Section 1. Subdivision (4) of section 12-81 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2017):

(4) (A) Except as otherwise provided by law, personal property belonging to, [or] held in trust for, or leased to, a municipal corporation of this state and used for a public purpose, including [real and] personal property used for cemetery purposes, and (B) real property belonging to, held in trust for, or leased to, a municipal corporation of this state and used for a public purpose, including real property used for cemetery purposes, provided any such leased personal property, including, but not limited to, motor vehicles subject to the provisions of section 12-71 and any such leased real property is located within the boundaries of such municipal corporation;

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

Section 1

October 1, 2017

12-81(4)

PD

Joint Favorable

 

The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.


OFA Fiscal Note

State Impact: None

Municipal Impact: None

Explanation

The bill exempts from taxation real and personal property, and motor vehicles, that are leased to a municipality and located within such municipality.

Generally, companies factor the cost of property taxes paid into the rent they charge to municipalities for leasing equipment or land. A municipality would experience no net fiscal impact as a result of this bill if it is currently paying rent to a company that includes the exact amount of property taxes it collected from the company.

The Out Years

State Impact: None

Municipal Impact: None

OLR Bill Analysis

HB 7185

AN ACT EXEMPTING LEASED MUNICIPAL PROPERTY FROM TAXATION.

SUMMARY

This bill expands the local property tax exemption for municipal property to include real and personal property leased to a municipality that is used for a public purpose and located in the municipality, including taxable motor vehicles.

Under current law, the exemption applies to real and personal property owned by or held in trust for a municipality that is used for public purposes.

EFFECTIVE DATE: October 1, 2017

COMMITTEE ACTION

Planning and Development Committee

Joint Favorable

Yea

22

Nay

0

(03/17/2017)

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