An Act Concerning Land Value Taxation


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Raised Bill No. 5069.
Introduced into the General Assembly during the February Session, 2002
(LCO No. 308)


AN ACT CONCERNING LAND VALUE TAXATION.

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

Section 1. Section 12-62a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2002, and applicable to assessment years commencing on or after October 1, 2002):

(a) Each municipality, as defined in section 7-381, shall establish a uniform assessment date of October first.

(b) Each such municipality shall assess all property for purposes of the local property tax at a uniform rate of seventy per cent of present true and actual value, as determined under section 12-63. For assessment years commencing on and after October 1, 2002, any targeted investment community, as defined in section 32-222, as amended, by ordinance adopted by its legislative body, may (1) classify real estate as (A) land or land exclusive of buildings, or (B) buildings on land, and (2) establish a different rate of property tax for each class, provided the higher rate shall apply to land or land exclusive of buildings.

(c) Repealed by P.A. 96-171, S. 15, 16.

(d) Repealed by P.A. 96-171, S. 15, 16.

(e) Commencing October 1, 1996, any such municipality may, with respect to the assessment list in such municipality in a year in which a revaluation becomes effective, as required under section 12-62, by vote of its legislative body and in the manner provided in this subsection, defer all or any part of the amount of any increase in the assessed value of real property included in the assessment list in the year such revaluation becomes effective, provided in the year such revaluation becomes effective and in any succeeding year in which such deferment is allowed by such municipality, the assessed value of any real property in the year immediately preceding revaluation shall be increased in such equal amounts in each of such years that the assessed value of such real property in the last year of such deferment, but in no event later than the third year following the year of such revaluation, shall be no less than the assessed value applicable to such property in the year of revaluation except for deferment of such increased assessment in accordance with this subsection. In any municipality with such a revaluation becoming effective and electing to defer all or any part of the amount of such increase in the assessed value of real property over the period of three years immediately following, as provided in this subsection, subject to approval by the legislative body as provided above with respect to real property included in the assessment list in the year of such revaluation, new real estate construction in such municipality which is completed and determined to be subject to property tax as provided in section 12-53a after the assessment date in the year of such revaluation and prior to the assessment date in the third year following the year of such revaluation, may be assessed during such period in a manner similar to that provided in this subsection for real property included in the assessment list in the year of such revaluation, deferring a portion of the actual assessed value of such new construction as of the date liability for property tax is established and adding such portion in equal increments to an assessed value for such new construction estimated as that which would have been applicable if it had been completed immediately prior to the assessment date in the year of such revaluation, such increments to be added in each assessment year commencing with the year in which liability for property tax is so established and ending not later than the third year following the year of such revaluation. The assessed value for purposes of this subsection in each of said years shall be determined as the sum of (1) such estimated assessed value, (2) any of the equal increments already added to such estimated value for purposes of determining the assessed value in accordance with this subsection, and (3) the increment for the year with respect to which such assessed value is being determined. The portion of the actual assessed value of such new construction as of the date of such liability which is to be deferred and added in increments to such estimated assessed value shall be the amount by which the actual assessed value of such new construction on the date tax liability is so established exceeds the estimated assessed value for such new construction as described in this subsection.

(f) Any municipality which has elected to defer all or any part of the amount of increase in the assessed value of real property as provided in subsection (e) of this section may (1) continue the plan of such deferment as approved by the legislative body of such municipality until the third year following the year of such revaluation as provided in said subsection (e), or (2) at any time, subject to approval by the legislative body in such municipality, discontinue the plan of such deferment as adopted and notwithstanding the provisions of section 7-344 and any other public or special act or charter, lay such rate of property tax on the assessment list for the assessment year in which such discontinuance occurs, as completed and placed in the town clerk's office in accordance with section 12-55, without any deferment of amounts of increase in assessed values in accordance with said subsection (e), in the amount that would have been applicable with respect to said assessment list if such plan of deferment had not been adopted. In the event any such tax in accordance with said subsection (e) has been levied and become due and payable in such assessment year prior to the date of such discontinuance as provided in this subsection, the amount of tax due and payable under this subsection shall be that portion of such tax in excess of the amount of tax due and payable prior to the date of such discontinuance and which amount, notwithstanding discontinuance of such plan of deferment, shall continue to be collectible by the tax collector. Within a period not exceeding thirty days following the date on which such plan of deferment is discontinued, the assessor in such municipality shall notify the tax collector as to the additional amounts of such tax due with respect to the assessment list for the assessment year in which such discontinuance occurs and the tax collector shall within ten days thereafter mail a bill to the owner of each parcel of real property subject to such additional tax. Such tax shall be due and payable and collectible as other municipal property taxes, provided such tax shall be due and payable in an initial or single installment not sooner than thirty days following the date such bill is mailed to the owner and in any remaining installments of equal amounts as the same are determined to be due and payable by the legislative body.

(g) Repealed by P.A. 83-465, S. 3, 4.

This act shall take effect as follows:

Section 1

October 1, 2002, and applicable to assessment years commencing on or after October 1, 2002

Statement of Purpose:

To authorize communities to establish two rates of taxation.

[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.]



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