SB 363 — AN ACT ALLOWING MUNICIPALITIES TO IMPOSE COMMERCIAL VACANCY ASSESSMENTS IN CERTAIN DISTRICTS.

Senate General Assembly RaisedFile Bill No.

363296 February Session, 2026 LCOSubstitute Senate Bill No.

2232363 ReferredSenate, toApril 1, 2026 The Committee on PLANNINGPlanning ANDand DEVELOPMENTDevelopment Introducedreported by:through SEN.

(PD)RAHMAN ANof ACTthe ALLOWING4th MUNICIPALITIESDist., TOChairperson IMPOSEof COMMERCIALthe VACANCYCommittee ASSESSMENTSon INthe CERTAINpart DISTRICTS.of the Senate, that the substitute bill ought to pass.

AN ACT ALLOWING MUNICIPALITIES TO IMPOSE COMMERCIAL VACANCY ASSESSMENTS IN CERTAIN DISTRICTS.

(1) "Active renovation" means construction or repair work pursuantlasting tonot anless approvedthan buildingninety permit,consecutive withdays suchand workundertaken ongoingpursuant forto atan leastapproved ninetybuilding consecutivepermit; days;

(b) Any municipality may, by vote of its legislative body, adoptor, anin ordinancea imposingsSB363 an/ assessmentFile on any real property that is (1) vacant, (2) zoned for commercial use and not used for any residential LCO No.

2232296 1 ofsSB363 3File RaisedNo. Bill No.363 purpose, and (3) located in a defined district or zone adopted by the municipality, at the rate of five dollars per square foot for any assessment year during which such property remains vacant.

(c)296 Notwithstandingmunicipality where the provisionslegislative ofbody subsectionis (b)a town meeting, its board of thisselectmen, section,adopt noan ordinance imposing an assessment shallbeon imposedany onrealpropertyreal pursuantproperty tothissectionthat if:is (1) vacant, (2) located in a zone that allows for commercial use and not used for any residential purpose, (3) located at ground level, if such real property is part of a building or structure containing two or more levels, and (4) located in a defined area adopted by the municipality in which such assessment is applicable.

Such assessment shall be at a rate determined by the municipality, provided such rate doesnot exceed five dollarsper square foot for any assessment year during which such property remains vacant.

(c) Notwithstanding the provisions of subsection (b) of this section, no assessment shallbe imposedonrealproperty pursuant tothissection if:

(2) The owner identifies specific legal or regulatory barriers, including pending litigation, environmental reviews or permitting delaysdelaysthat that have preventedpreventedoccupancy occupancyor ofuse theoftherealproperty real property during the preceding assessment year;

Any such assessment may be appealed pursuant to the provisions of section 12-111 of the generalsSB363 statutes./ File No.

296 2 sSB363 File No.

296 general statutes.

(f) Any assessment collected pursuant to this section shall be deposited into a fund established by the municipality.

Such fund shall be used solely for infrastructure improvements, the remediation of blight or the promotion of development in the area defined by the municipality pursuant to subdivision(4)ofsubsection(b)ofthissection.

The proceeds of such fund shall not be used for operating expenses of any kind or be considered a part of the municipal general fund.

Expenditures from such fund shall be authorized in the same manner as any other capital expenditure of the municipality.

Any income earned by any moneys on deposit in such fund shall accrue to the fund.

LCOSection No.1 October 1, 2026, and New section applicable to assessment years commencing on or after October 1, 2026 Statement of Legislative Commissioners:

2232Subdiv. 2 of 3 Raised Bill No.

363(a)(1) Sectionwas 1rewritten Octoberfor 1,clarity; 2026, and New section applicable to assessment years commencing on or after October 1, 2026 Statement of Purpose:

To allow municipalities to impose a commercial vacancy assessment on vacant commercial property located in districtsSubdiv. designated by the municipality.

[Proposed(b)(2), deletions"zoned" arewas enclosedchangedto"locatedinazonethatallows",foraccuracy;inSubdiv.(b)(4), in"identified" brackets.was changed to "adopted", for accuracy, and "in which such assessment isapplicable"wasadded for clarity;andinSubdiv.(c)(2), "or use" was added after "occupancy", for accuracy.

ProposedPD additionsJoint areFavorable indicatedSubst. 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.] LCO No.

2232sSB363 3/ ofFile 3No.

296 3 sSB363 File No.

296 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:

Municipalities Effect FY 27 $ FY 28 $ All Municipalities Potential None Potential Revenue Gain Explanation The bill allows municipalities to impose a fine on vacant commercial property that meets certain criteria.

This results in a revenue gain to municipalities beginning in FY 28 to the extent this fine is imposed.

Any revenue gain is dependent on the number of fines imposed and the amount of the fine.

1 The bill specifies how the revenue from fines must be spent which does not result in a fiscal impact.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to the number and amount of fines.

1The bill allows the fine to be set at up to $5 per square foot and charge it for each assessment year that the space is vacant.

sSB363 / File No.