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February Session, 2006
LCO No. 2475
*02475_______PD_*
Referred to Committee on Planning and Development
Introduced by:
(PD)
AN ACT CONCERNING OPTIONS TO ABATE PROPERTY TAXES AND THE SURCHARGE ON CORPORATIONS.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. Section 12-124a of the general statutes is repealed and
the following is substituted in lieu thereof (Effective October
1, 2006, and applicable to assessment years commencing on or after
October 1, 2006):
(a) Any municipality may, upon approval
by its legislative body or in any town in which the legislative
body is a town meeting, by the board of selectmen, abate the property
taxes due for any tax year with respect to any residential dwelling
occupied by the owner or owners and for whom such dwelling is the
primary place of residence, to the extent that such property taxes
exceed eight per cent or more of the total income from any source,
adjusted for self-employed persons to reflect the allowance for
expenses in determining adjusted gross income for federal income
tax purposes, of such owner or owners and any other person for whom
such dwelling is the primary place of residence, for the calendar
year immediately preceding the beginning of the tax year for which
such taxes are due. Application for such abatement shall be made
not later than thirty days preceding the tax due date for such tax
year, provided if the amount of such taxes has not been determined
on such date, within ten days following determination of the amount
of such taxes.
(b) Whenever any municipality has approved abatement of taxes as
provided in subsection (a) of this section, the owner or owners
shall deliver to the tax collector in such municipality, not later
than ten days following the tax due date for such taxes abated,
an agreement, on a form executed and acknowledged in the form and
manner required for the transfer of an interest in real property,
to reimburse such municipality in the amount of the taxes abated,
with interest at six per cent per annum or such rate as approved
by the legislative body. Such agreement shall contain a legal description
of the real property with respect to which such abatement is approved
and shall be recorded in the land records of such municipality.
Such agreement shall constitute a lien on such real property which
shall remain valid until paid. Such lien shall be due and payable
in full upon the sale or transfer of such real property or upon
the death of the owner, or if owned by more than one person at the
time such lien is created, upon the death of the last of such owners
surviving. Such lien shall be released by the tax collector in such
municipality when the taxes secured thereby have been paid. No lien
recorded under the provisions of this subsection shall take precedence
over any mortgage recorded in the land records prior to such certificate
of lien.
(c) Any municipality that on January 1,
2006, collected municipal property taxes and applied a property
tax surcharge pursuant to the provisions of section 12-62d, may,
by a vote of its legislative body, abate the property taxes due
for any tax year with respect to any one, two or three-family residential
dwelling occupied by the owner or owners and for whom such dwelling
is the primary place of residence, to the extent that such property
taxes exceed four per cent or more of the total income from any
source, adjusted for self-employed persons to reflect the allowance
for expenses in determining adjusted gross income for federal income
tax purposes, of such owner, owners, spouse or domestic partner
of such owner or owners, for the calendar year immediately preceding
the beginning of the tax year for which such taxes are due. Application
for such abatement shall be made not later than forty-five days
preceding the tax due date for such tax year, provided if the amount
of such taxes has not been determined on such date, not later than
ten days following determination of the amount of such taxes. Any
municipality that abates taxes pursuant to this subsection shall
not apply the provisions of subsection (b) of this section if the
legislative body of the municipality votes to repeal any surcharge
and tax relief plan promulgated pursuant to section 12-62d.
(d) Any municipality adopting a tax abatement plan under subsection
(c) of this section shall require each applicant for an abatement
to sign a form truthfully attesting to the income of the owner,
owners, spouse or domestic partner of such owner and owners. Making
a false statement on such a form shall constitute a violation of
section 53a-157b. The municipality shall reject any application
for abatement of taxes for a period of seven years from a person
found to have furnished false information on such form and taxes
abated pursuant to the false statement on such form shall be considered
delinquent.
(e) Any municipality adopting a tax abatement plan pursuant to subsection
(c) of this section may adopt by ordinance of its legislative body
a procedure for auditing and reviewing the abatement program to
insure compliance with this section.
Sec. 2. Subsection (b) of section 12-214 of the 2006 supplement
to the general statutes is repealed and the following is substituted
in lieu thereof (Effective July 1, 2006, and applicable to income
years commencing on or after January 1, 2006):
(b) (1) With respect to income years commencing on or after January
1, 1989, and prior to January 1, 1992, any company subject to the
tax imposed in accordance with subsection (a) of this section shall
pay, for each such income year, an additional tax in an amount equal
to twenty per cent of the tax calculated under said subsection (a)
for such income year, without reduction of the tax so calculated
by the amount of any credit against such tax. The additional amount
of tax determined under this subsection for any income year shall
constitute a part of the tax imposed by the provisions of said subsection
(a) and shall become due and be paid, collected and enforced as
provided in this chapter.
(2) With respect to income years commencing on or after January
1, 1992, and prior to January 1, 1993, any company subject to the
tax imposed in accordance with subsection (a) of this section shall
pay, for each such income year, an additional tax in an amount equal
to ten per cent of the tax calculated under said subsection (a)
for such income year, without reduction of the tax so calculated
by the amount of any credit against such tax. The additional amount
of tax determined under this subsection for any income year shall
constitute a part of the tax imposed by the provisions of said subsection
(a) and shall become due and be paid, collected and enforced as
provided in this chapter.
(3) With respect to income years commencing on or after January
1, 2003, and prior to January 1, 2004, any company subject to the
tax imposed in accordance with subsection (a) of this section shall
pay, for each such income year, an additional tax in an amount equal
to twenty per cent of the tax calculated under said subsection (a)
for such income year, without reduction of the tax so calculated
by the amount of any credit against such tax. The additional amount
of tax determined under this subsection for any income year shall
constitute a part of the tax imposed by the provisions of said subsection
(a) and shall become due and be paid, collected and enforced as
provided in this chapter.
(4) With respect to income years commencing on or after January
1, 2004, and prior to January 1, 2005, any company subject to the
tax imposed in accordance with subsection (a) of this section shall
pay, for each such income year, an additional tax in an amount equal
to twenty-five per cent of the tax calculated under said subsection
(a) for such income year, without reduction of the tax so calculated
by the amount of any credit against such tax, except that any company
that pays the minimum tax of two hundred fifty dollars under section
12-219, as amended, or 12-223c
for such income year shall not be subject to the additional tax
imposed by this subdivision. The additional amount of tax determined
under this subdivision for any income year shall constitute a part
of the tax imposed by the provisions of said subsection (a) and
shall become due and be paid, collected and enforced as provided
in this chapter.
(5) With respect to income years commencing on or after January
1, 2006, and prior to January 1, 2007, any company subject to the
tax imposed in accordance with subsection (a) of this section shall
pay, except when the tax so calculated is equal to two hundred fifty
dollars, for each such income year, an additional tax in an amount
equal to twenty per cent of the tax calculated under said subsection
(a) for such income year, without reduction of the tax so calculated
by the amount of any credit against such tax. The additional amount
of tax determined under this subsection for any income year shall
constitute a part of the tax imposed by the provisions of said subsection
(a) and shall become due and be paid, collected and enforced as
provided in this chapter.
[(6) With respect to income
years commencing on or after January 1, 2007, and prior to January
1, 2008, any company subject to the tax imposed in accordance with
subsection (a) of this section shall pay, except when the tax so
calculated is equal to two hundred fifty dollars, for each such
income year, an additional tax in an amount equal to fifteen per
cent of the tax calculated under said subsection (a) for such income
year, without reduction of the tax so calculated by the amount of
any credit against such tax. The additional amount of tax determined
under this subsection for any income year shall constitute a part
of the tax imposed by the provisions of said subsection (a) and
shall become due and be paid, collected and enforced as provided
in this chapter.]
Sec. 3. Subsection (b) of section 12-219 of the 2006 supplement
to the general statutes is repealed and the following is substituted
in lieu thereof (Effective July 1, 2006, and applicable to income
years commencing on or after January 1, 2006):
(b) (1) With respect to income years commencing on or after January
1, 1989, and prior to January 1, 1992, the additional tax imposed
on any company and calculated in accordance with subsection (a)
of this section shall, for each such income year, except when the
tax so calculated is equal to two hundred fifty dollars, be increased
by adding thereto an amount equal to twenty per cent of the additional
tax so calculated for such income year, without reduction of the
additional tax so calculated by the amount of any credit against
such tax. The increased amount of tax payable by any company under
this section, as determined in accordance with this subsection,
shall become due and be paid, collected and enforced as provided
in this chapter.
(2) With respect to income years commencing on or after January
1, 1992, and prior to January 1, 1993, the additional tax imposed
on any company and calculated in accordance with subsection (a)
of this section shall, for each such income year, except when the
tax so calculated is equal to two hundred fifty dollars, be increased
by adding thereto an amount equal to ten per cent of the additional
tax so calculated for such income year, without reduction of the
tax so calculated by the amount of any credit against such tax.
The increased amount of tax payable by any company under this section,
as determined in accordance with this subsection, shall become due
and be paid, collected and enforced as provided in this chapter.
(3) With respect to income years commencing on or after January
1, 2003, and prior to January 1, 2004, the additional tax imposed
on any company and calculated in accordance with subsection (a)
of this section shall, for each such income year, be increased by
adding thereto an amount equal to twenty per cent of the additional
tax so calculated for such income year, without reduction of the
tax so calculated by the amount of any credit against such tax.
The increased amount of tax payable by any company under this section,
as determined in accordance with this subsection, shall become due
and be paid, collected and enforced as provided in this chapter.
(4) With respect to income years commencing on or after January
1, 2004, and prior to January 1, 2005, the additional tax imposed
on any company and calculated in accordance with subsection (a)
of this section shall, for each such income year, be increased by
adding thereto an amount equal to twenty-five per cent of the additional
tax so calculated for such income year, without reduction of the
tax so calculated by the amount of any credit against such tax,
except that any company that pays the minimum tax of two hundred
fifty dollars under this section or section 12-223c for such income
year shall not be subject to such additional tax. The increased
amount of tax payable by any company under this subdivision, as
determined in accordance with this subsection, shall become due
and be paid, collected and enforced as provided in this chapter.
(5) With respect to income years commencing on or after January
1, 2006, and prior to January 1, 2007, the additional tax imposed
on any company and calculated in accordance with subsection (a)
of this section shall, for each such income year, except when the
tax so calculated is equal to two hundred fifty dollars, be increased
by adding thereto an amount equal to twenty per cent of the additional
tax so calculated for such income year, without reduction of the
tax so calculated by the amount of any credit against such tax.
The increased amount of tax payable by any company under this section,
as determined in accordance with this subsection, shall become due
and be paid, collected and enforced as provided in this chapter.
[(6) With respect to income
years commencing on or after January 1, 2007, and prior to January
1, 2008, the additional tax imposed on any company and calculated
in accordance with subsection (a) of this section shall, for each
such income year, except when the tax so calculated is equal to
two hundred fifty dollars, be increased by adding thereto an amount
equal to fifteen per cent of the additional tax so calculated for
such income year, without reduction of the tax so calculated by
the amount of any credit against such tax. The increased amount
of tax payable by any company under this section, as determined
in accordance with this subsection, shall become due and be paid,
collected and enforced as provided in this chapter.]
| This act shall take effect as follows and shall amend the following sections: |
| Section 1 |
October 1, 2006, and
applicable to assessment years commencing on or after October
1, 2006 |
12-124a |
| Sec. 2 |
July 1, 2006, and
applicable to income years commencing on or after January 1,
2006 |
12-214(b) |
| Sec. 3 |
July 1, 2006, and
applicable to income years commencing on or after January 1,
2006 |
12-219(b) |
To establish a phase-in of property tax revaluation in qualifying municipalities and to eliminate the surcharge on corporations.
[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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