Connecticut 2019 Regular Session Status: Passed House Bipartisan · 1 R · 1 D cosponsors

HB 7408 — AN ACT CONCERNING MUNICIPAL STORMWATER AUTHORITIES, STUDIES OF THE PILOT GRANTS PROGRAM AND A PROPERTY TAX EXEMPTION FOR MACHINERY AND EQUIPMENT, AND ENTERPRISE ZONES.

Last action — FILE NO. 1030

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  1. ✓
    Introduced
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    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2019 Regular Session. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

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General Assembly Substitute Bill No.
General Assembly Raised Bill No.
7408 January Session, 2019 AN ACT CONCERNING MUNICIPAL STORMWATER AUTHORITIES, STUDIES OF THE PILOT GRANTS PROGRAM AND A PROPERTY TAX EXEMPTION FOR MACHINERY AND EQUIPMENT, AND ENTERPRISE ZONES.
7408 January Session, 2019 LCO No.
6748 Referred to Committee on FINANCE, REVENUE AND BONDING Introduced by:
(FIN) AN ACT CONCERNING MUNICIPAL REVENUE AND STORMWATER AUTHORITY, STUDIES OF THE PILOT GRANTS PROGRAM AND A PROPERTY TAX EXEMPTION FOR MACHINERY AND EQUIPMENT, AND ENTERPRISE ZONES.
Subdivision (1) of section 12-408 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2019, and applicable to sales occurring on or after July 1, 2019):
(1) (A) For the privilege of making any sales, as defined in subdivision (2) of subsection (a) of section 12-407, at retail, in this state for a consideration, a tax is hereby imposed on all retailers at the rate of six and thirty-five-hundredths per cent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail or from the rendering of any services constituting a sale in accordance with subdivision (2) of subsection (a) of section 12-407, except, in lieu of said rate, [of six and thirty-five-hundredths per cent,] the rates provided in subparagraphs (B) to [(H)] (I), inclusive, of this LCO No.
6748 1 of 40 Raised Bill No.7408 subdivision;
(B) (i) At a rate of fifteen per cent with respect to each transfer of occupancy, from the total amount of rent received by a hotel or lodging house for the first period not exceeding thirty consecutive calendar days;
(ii) At a rate of eleven per cent with respect to each transfer of occupancy, from the total amount of rent received by a bed and breakfast establishment for the first period not exceeding thirty consecutive calendar days;
(C) With respect to the sale of a motor vehicle to any individual who is a member of the armed forces of the United States and is on full-time active duty in Connecticut and who is considered, under 50 App USC 574, a resident of another state, or to any such individual and the spouse thereof, at a rate of four and one-half per cent of the gross receipts of any retailer from such sales, provided such retailer requires and maintains a declaration by such individual, prescribed as to form by the commissioner and bearing notice to the effect that false statements made in such declaration are punishable, or other evidence, satisfactory to the commissioner, concerning the purchaser's state of residence under 50 App USC 574;
(D) (i) With respect to the sales of computer and data processing services occurring on or after July 1, 2001, at the rate of one per cent, and (ii) with respect to sales of Internet access services, on and after July 1, 2001, such services shall be exempt from such tax;
(E) (i) With respect to the sales of labor that is otherwise taxable under subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 12-407 on existing vessels and repair or maintenance services on vessels occurring on and after July 1, 1999, such services shall be exempt from such tax;
(ii) With respect to the sale of a vessel, a motor for a vessel or a LCO No.
6748 2 of 40 Raised Bill No.7408 trailer used for transporting a vessel, at the rate of two and ninety- nine-hundredths per cent, except that the sale of a vessel shall be exempt from such tax if such vessel is docked in this state for sixty or fewer days in a calendar year;
(F) With respect to patient care services for which payment is received by the hospital on or after July 1, 1999, and prior to July 1, 2001, at the rate of five and three-fourths per cent and on and after July 1, 2001, such services shall be exempt from such tax;
(G) With respect to the rental or leasing of a passenger motor vehicle for a period of thirty consecutive calendar days or less, at a rate of nine and thirty-five-hundredths per cent;
(H) With respect to the sale of (i) a motor vehicle for a sales price exceeding fifty thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price, (ii) jewelry, whether real or imitation, for a sales price exceeding five thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price, and (iii) an article of clothing or footwear intended to be worn on or about the human body, a handbag, luggage, umbrella, wallet or watch for a sales price exceeding one thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price.
For purposes of this subparagraph, "motor vehicle" has the meaning provided in section 14-1, but does not include a motor vehicle subject to the provisions of subparagraph (C) of this subdivision, a motor vehicle having a gross vehicle weight rating over twelve thousand five hundred pounds, or a motor vehicle having a gross vehicle weight rating of twelve thousand five hundred pounds or less that is not used for private passenger purposes, but is designed or used to transport merchandise, freight or persons in connection with any business enterprise and issued a commercial registration or more specific type of registration by the Department of Motor Vehicles;
(I) With respect to the sale of meals, as defined in subdivision (13) of LCO No.
6748 3 of 40 Raised Bill No.7408 section 12-412, sold by an eating establishment, caterer or grocery store;
and spirituous, malt or vinous liquors, soft drinks, sodas or beverages such as are ordinarily dispensed at bars and soda fountains, or in connection therewith;
at the rate of seven and thirty-five- hundredths per cent;
[(I)] (J) The rate of tax imposed by this chapter shall be applicable to all retail sales upon the effective date of such rate, except that a new rate [which] that represents an increase in the rate applicable to the sale shall not apply to any sales transaction wherein a binding sales contract without an escalator clause has been entered into prior to the effective date of the new rate and delivery is made within ninety days after the effective date of the new rate.
For the purposes of payment of the tax imposed under this section, any retailer of services taxable under subdivision (37) of subsection (a) of section 12-407, who computes taxable income, for purposes of taxation under the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, [amended,] on an accounting basis [which] that recognizes only cash or other valuable consideration actually received as income and who is liable for such tax only due to the rendering of such services may make payments related to such tax for the period during which such income is received, without penalty or interest, without regard to when such service is rendered;
[(J)] (K) (i) For calendar quarters ending on or after September 30, 2019, the commissioner shall deposit into the regional planning incentive account, established pursuant to section 4-66k, six and seven- tenths per cent of the amounts received by the state from the tax imposed under subparagraph (B) of this subdivision and ten and seven-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (G) of this subdivision;
(ii) For calendar quarters ending on or after September 30, 2018, the commissioner shall deposit into the Tourism Fund established under LCO No.
6748 4 of 40 Raised Bill No.7408 section 10-395b ten per cent of the amounts received by the state from the tax imposed under subparagraph (B) of this subdivision;
[(K)] (L) For calendar months commencing on or after July 1, 2021, the commissioner shall deposit into the municipal revenue sharing account established pursuant to section 4-66l seven and nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision;
and [(L)] (M) (i) For calendar months commencing on or after July 1, 2017, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 seven and nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision;
(ii) For calendar months commencing on or after July 1, 2018, but prior to July 1, 2019, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 eight per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor vehicle;
(iii) For calendar months commencing on or after July 1, 2019, but prior to July 1, 2020, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 thirty-three per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor vehicle;
(iv) For calendar months commencing on or after July 1, 2020, but prior to July 1, 2021, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 fifty-six per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor vehicle;
LCO No.
6748 5 of 40 Raised Bill No.7408 (v) For calendar months commencing on or after July 1, 2021, but prior to July 1, 2022, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 seventy-five per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor vehicle;
and (vi) For calendar months commencing on or after July 1, 2022, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 one hundred per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor vehicle;
[.] and (N) For calendar quarters ending on or after September 30, 2019, the commissioner shall deposit into the Municipal Diversification Fund established under section 4 of this act thirteen and six-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (I) of this subdivision.
Sec.
2.
Subdivision (1) of section 12-411 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2019):
(1) (A) An excise tax is hereby imposed on the storage, acceptance, consumption or any other use in this state of tangible personal property purchased from any retailer for storage, acceptance, consumption or any other use in this state, the acceptance or receipt of any services constituting a sale in accordance with subdivision (2) of subsection (a) of section 12-407, purchased from any retailer for consumption or use in this state, or the storage, acceptance, consumption or any other use in this state of tangible personal property which has been manufactured, fabricated, assembled or processed from materials by a person, either within or without this state, for storage, acceptance, consumption or any other use by such person in this state, to be measured by the sales price of materials, at LCO No.
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6748 6 of 40 Raised Bill No.7408 the rate of six and thirty-five-hundredths per cent of the sales price of such property or services, except, in lieu of said rate:
[of six and thirty- five-hundredths per cent;] (B) (i) At a rate of fifteen per cent of the rent paid to a hotel or lodging house for the first period not exceeding thirty consecutive calendar days;
(ii) At a rate of eleven per cent of the rent paid to a bed and breakfast establishment for the first period not exceeding thirty consecutive calendar days;
(C) With respect to the storage, acceptance, consumption or use in this state of a motor vehicle purchased from any retailer for storage, acceptance, consumption or use in this state by any individual who is a member of the armed forces of the United States and is on full-time active duty in Connecticut and who is considered, under 50 App USC 574, a resident of another state, or to any such individual and the spouse of such individual at a rate of four and one-half per cent of the sales price of such vehicle, provided such retailer requires and maintains a declaration by such individual, prescribed as to form by the commissioner and bearing notice to the effect that false statements made in such declaration are punishable, or other evidence, satisfactory to the commissioner, concerning the purchaser's state of residence under 50 App USC 574;
(D) (i) With respect to the acceptance or receipt in this state of labor that is otherwise taxable under subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 12-407 on existing vessels and repair or maintenance services on vessels occurring on and after July 1, 1999, such services shall be exempt from such tax;
(ii) (I) With respect to the storage, acceptance or other use of a vessel in this state, at the rate of two and ninety-nine-hundredths per cent, except that such storage, acceptance or other use shall be exempt from such tax if such vessel is docked in this state for sixty or fewer days in LCO No.
6748 7 of 40 Raised Bill No.7408 a calendar year;
(II) With respect to the storage, acceptance or other use of a motor for a vessel or a trailer used for transporting a vessel in this state, at the rate of two and ninety-nine-hundredths per cent;
(E) (i) With respect to the acceptance or receipt in this state of computer and data processing services purchased from any retailer for consumption or use in this state occurring on or after July 1, 2001, at the rate of one per cent of such services, and (ii) with respect to the acceptance or receipt in this state of Internet access services, on and after July 1, 2001, such services shall be exempt from such tax;
(F) With respect to the acceptance or receipt in this state of patient care services purchased from any retailer for consumption or use in this state for which payment is received by the hospital on or after July 1, 1999, and prior to July 1, 2001, at the rate of five and three-fourths per cent and on and after July 1, 2001, such services shall be exempt from such tax;
(G) With respect to the rental or leasing of a passenger motor vehicle for a period of thirty consecutive calendar days or less, at a rate of nine and thirty-five-hundredths per cent;
(H) With respect to the acceptance or receipt in this state of (i) a motor vehicle for a sales price exceeding fifty thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price, (ii) jewelry, whether real or imitation, for a sales price exceeding five thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price, and (iii) an article of clothing or footwear intended to be worn on or about the human body, a handbag, luggage, umbrella, wallet or watch for a sales price exceeding one thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price.
For purposes of this subparagraph, "motor vehicle" has the meaning provided in section 14-1, but does not include a motor vehicle subject to the provisions of subparagraph (C) of this subdivision, a motor LCO No.
6748 8 of 40 Raised Bill No.7408 vehicle having a gross vehicle weight rating over twelve thousand five hundred pounds, or a motor vehicle having a gross vehicle weight rating of twelve thousand five hundred pounds or less that is not used for private passenger purposes, but is designed or used to transport merchandise, freight or persons in connection with any business enterprise and issued a commercial registration or more specific type of registration by the Department of Motor Vehicles;
(I) With respect to the acceptance or receipt in this state of meals, as defined in subdivision (13) of section 12-412, sold by an eating establishment, caterer or grocery store;
and spirituous, malt or vinous liquors, soft drinks, sodas or beverages such as are ordinarily dispensed at bars and soda fountains, or in connection therewith;
at the rate of seven and thirty-five-hundredths per cent;
[(I)] (J) (i) For calendar quarters ending on or after September 30, 2019, the commissioner shall deposit into the regional planning incentive account, established pursuant to section 4-66k, six and seven- tenths per cent of the amounts received by the state from the tax imposed under subparagraph (B) of this subdivision and ten and seven-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (G) of this subdivision;
(ii) For calendar quarters ending on or after September 30, 2018, the commissioner shall deposit into the Tourism Fund established under section 10-395b ten per cent of the amounts received by the state from the tax imposed under subparagraph (B) of this subdivision;
[(J)] (K) For calendar months commencing on or after July 1, 2021, the commissioner shall deposit into said municipal revenue sharing account seven and nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision;
[and] [(K)] (L) (i) For calendar months commencing on or after July 1, 2017, the commissioner shall deposit into said Special Transportation LCO No.
6748 9 of 40 Raised Bill No.7408 Fund seven and nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision;
(ii) For calendar months commencing on or after July 1, 2018, but prior to July 1, 2019, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 eight per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the acceptance or receipt in this state of a motor vehicle;
(iii) For calendar months commencing on or after July 1, 2019, but prior to July 1, 2020, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 thirty-three per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the acceptance or receipt in this state of a motor vehicle;
(iv) For calendar months commencing on or after July 1, 2020, but prior to July 1, 2021, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 fifty-six per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the acceptance or receipt in this state of a motor vehicle;
(v) For calendar months commencing on or after July 1, 2021, but prior to July 1, 2022, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 seventy-five per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the acceptance or receipt in this state of a motor vehicle;
and (vi) For calendar months commencing on or after July 1, 2022, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 one hundred per cent of the amounts received by the state from the tax imposed under subparagraphs (A) LCO No.
6748 10 of 40 Raised Bill No.7408 and (H) of this subdivision on the acceptance or receipt in this state of a motor vehicle;
[.] and (M) For calendar quarters ending on or after September 30, 2019, the commissioner shall deposit into the Municipal Diversification Fund established under section 4 of this act thirteen and six-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (I) of this subdivision.
Sec.
3.
(NEW) (Effective July 1, 2019) (a) As used in this section, "municipality" means any town, city, consolidated town and city or consolidated town and borough.
(b) (1) Notwithstanding the provisions of any special act or municipal charter or ordinance, any municipality that seeks to accept moneys from the Municipal Diversification Fund established pursuant to section 4 of this act shall, by vote of its legislative body or, in a municipality where the legislative body is a town meeting, by vote of the board of selectmen, approve a resolution to accept such moneys.
The chief elected official of a municipality that has approved such resolution shall notify the Commissioner of Revenue Services of such approval and the date such approval is effective.
(2) Any municipality that has approved such resolution may vote to repeal such resolution in the same manner such resolution was approved.
The chief elected official of such municipality shall notify the commissioner of such repeal and the date such repeal is effective.
Sec.
4.
(NEW) (Effective July 1, 2019) (a) There is established a fund to be known as the "Municipal Diversification Fund".
The fund shall contain any moneys required by law to be deposited in the fund and shall be held in trust separate and apart from all other moneys, funds and accounts.
Any balance remaining in the fund at the end of any fiscal year shall be carried forward in the fund for the fiscal year next succeeding.
Moneys in the fund shall be expended by the Commissioner of Revenue Services for the purpose of providing LCO No.
6748 11 of 40 Raised Bill No.7408 moneys to municipalities in accordance with this section.
(b) The Commissioner of Revenue Services shall maintain an accounting, aggregated by municipality, of the amounts deposited in the Municipal Diversification Fund pursuant to subparagraph (N) of subdivision (1) of section 12-408 of the general statutes, as amended by this act, and subparagraph (M) of subdivision (1) of section 12-411 of the general statutes, as amended by this act.
(c) Commencing in the calendar quarter ending March 31, 2020, and in each calendar quarter thereafter, the commissioner shall distribute moneys from such fund, calculated on a point-of-sale basis, to each municipality that has approved a resolution in accordance with section 3 of this act and for which a point-of-sale can be determined.
Any moneys for which no point-of-sale can be determined shall be transferred each calendar quarter to the regional planning incentive account established under section 4-66k of the general statutes.
Sec.
5.
Section 12-408d of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
For calendar quarters commencing on or after July 1, [2004] 2019, any retailer with sales in more than one town in this state, for which sales such retailer files a return under this chapter, shall disaggregate the information in the return, in such form [as may be] prescribed by the Commissioner of Revenue Services, to indicate the town in which sales occurred for which tax was collected by such retailer and the amount of such tax collected, by town.
Sec.
6.
(NEW) (Effective July 1, 2019) (a) Any municipality may, by vote of its legislative body or, in a municipality where the legislative body is a town meeting, by vote of the board of selectmen, establish a municipal public safety and infrastructure benefit charge to be levied on entities that own real or personal property in the municipality and are exempt from taxation pursuant to Section 501(c) of the Internal Revenue Code of 1986, or any subsequent corresponding internal LCO No.
6748 12 of 40 Raised Bill No.7408 revenue code of the United States, as amended from time to time.
As used in this section, "municipality" means a town, city or borough, consolidated town and city or consolidated town and borough.
(b) Such municipality shall (1) calculate the cost to the general fund of the municipality of providing police, fire, emergency services and road maintenance, using a level-of-service analysis or other valid cost- based method, (2) analyze any fees, assessments, voluntary payments and in-kind services the municipality currently receives from such entities, (3) examine and evaluate any other considerations the municipality deems necessary to calculate and levy such fee, and (4) determine a fee structure for the cost of providing the services set forth in subdivision (1) of this subsection, calculated as a percentage of the overall budget expenditure multiplied by the assessed value of tax- exempt property located in the municipality.
Any charge levied on an entity under this section shall be sent and collected in the same manner as property tax bills and payments therefor.
(c) Any charge imposed under this section that is not paid within thirty days after the due date shall be delinquent and subject to interest at the rate of eighteen per cent per annum from such due date to the date such unpaid charge and interest thereon are paid.
Any charge unpaid and interest due thereon shall constitute a lien upon the real or personal property of the entity located in the municipality and may be recorded and released in the manner provided for recording and releasing property tax liens.
(d) Any person aggrieved by any action of the municipality taken under this section shall have the same rights and remedies for appeal and relief as are provided in the general statutes for taxpayers claiming to be aggrieved by the doings of the assessors or board of assessment appeals.
Sec.
7.
(a) Any municipality [selected by the commissioner to participate in the pilot program established pursuant to section 22a-497] may, by ordinance adopted by its legislative body, designate any existing board or commission or establish a new board or commission as the stormwater authority for such municipality.
LCO No.
6748 13 of 40 Raised Bill No.7408 (a) Any municipality [selected by the commissioner to participate in the pilot program established pursuant to section 22a-497] may, by ordinance adopted by its legislative body, designate any existing board or commission or establish a new board or commission as the stormwater authority for such municipality.
or (B) a program for LCO \\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07408-R01 of 26 HB.docx Substitute Bill No.
or (B) a program for control and abatement of stormwater pollution from existing land uses, and the detection and elimination of connections to the stormwater system that threaten the public health, welfare or the environment;
7408 control and abatement of stormwater pollution from existing land uses, and the detection and elimination of connections to the stormwater system that threaten the public health, welfare or the environment;
(c) Any stormwater authority created by a municipality pursuant to subsection (a) of this section may levy fees from property owners of the municipality for the purposes described in subsection (b) of this section.
(c) Any stormwater authority created by a municipality pursuant to subsection (a) of this section may levy fees from property owners of LCO No.
6748 14 of 40 Raised Bill No.7408 the municipality for the purposes described in subsection (b) of this section.
The stormwater authority may reduce or defer such fees (1) for land classified as, or consisting of, farm, forest or open space land, or (2) if stormwater retention standards under the general permit for the discharge of stormwater from small municipal separate storm sewer systems, promulgated by the Department of Energy and Environmental Protection, have been satisfied.
The stormwater authority may reduce or defer such fees (1) for land classified as, or consisting of, farm, forest or open space lan, or (2) if stormwater retention standards under the general permit for the discharge of stormwater from small municipal separate storm sewer systems, promulgated by the Department of Energy and Environmental Protection, have been sati.fied (d) The authority may adopt municipal regulations to implement the stormwater management program.
(d) The authority may adopt municipal regulations to implement the stormwater management program.
(e) The authority may [, subject to the commissioner's approval,] enter into contracts with any municipal or regional entity to accomplish the purposes of this section.
(e) The authority may [, subject to the commissioner's approval,] LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07402 of 26 R01-HB.docx } Substitute Bill No.
7408 enter into contracts with any municipal or regional entity to accomplish the purposes of this section.
2.
8.
(Effective from passage) The Secretary of the Office of Policy and Management shall conduct a study of the payment in lieu of taxes grant program with respect to towns in which over fifty per cent of the land within such town's boundaries is state forest.
(Effective from passage) The Secretary of the Office of Policy and Management shall conduct a study of the payment in lieu of taxes grants program with respect to towns in which over fifty per cent of the land within such town's boundaries is state forest.
The secretary shall evaluate the formula used for such grant program as applied to such towns and whether changes should be made to such formula for such towns.
The secretary shall evaluate the formula used for such grants program as applied to such towns and whether changes should be made to such formula for such towns.
3.
9.
(Effective from passage) The Commissioner of Economic and Community Development shall conduct a study of the property tax exemption for machinery and equipment under subdivision (76) of section 12-81 of the general statutes and evaluate the effect of limiting the number of years for which a taxpayer could be eligible for such exemption to seven or fewer years.
(Effective from passage) The Commissioner of Economic and Community Development shall conduct a study of the property tax LCO No.
6748 15 of 40 Raised Bill No.7408 exemption for machinery and equipment under subdivision (76) of section 12-81 of the general statutes and evaluate the effect of limiting the number of years for which a taxpayer would be eligible for such exemption to seven or fewer years.
4.
10.
(a) Any municipality that was a distressed municipality under the provisions of subsection (b) of section 32-9p on February 1, 1986, may, LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07403 of 26 R01-HB.docx } Substitute Bill No.
(a) Any municipality that was a distressed municipality under the provisions of subsection (b) of section 32-9p on February 1, 1986, may, with the approval of the Commissioner of Economic and Community Development, designate an area of such municipality as an enterprise zone.
7408 with the approval of the Commissioner of Economic and Community Development, designate an area of such municipality as an enterprise zone.
or (3) the unemployment rate of the individual census tracts shall be at least two hundred per cent of the state's average, as determined by the most recent United States census, as officially updated by the appropriate state agency or institution.
or (3) the unemployment rate of the individual census LCO No.
6748 16 of 40 Raised Bill No.7408 tracts shall be at least two hundred per cent of the state's average, as determined by the most recent United States census, as officially updated by the appropriate state agency or institution.
(B) fifteen per cent or more of the families within the census tract shall receive public assistance or welfare income, as determined LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07404 of 26 R01-HB.docx } Substitute Bill No.
(B) fifteen per cent or more of the families within the census tract shall receive public assistance or welfare income, as determined by the most recent United States census, as officially updated by the appropriate state agency or institution;
7408 by the most recent United States census, as officially updated by the appropriate state agency or institution;
Any private properties so affected shall be included in the enterprise zone at the time of the designation of the zone except, in the case of an enterprise zone designated prior to October 1, 1983, the commissioner may include within the zone any such property if the municipality in which the zone is located requests the commissioner to include such property not later than sixty days after October 1, 1983.
Any private properties so affected shall be included in the enterprise LCO No.
6748 17 of 40 Raised Bill No.7408 zone at the time of the designation of the zone except, in the case of an enterprise zone designated prior to October 1, 1983, the commissioner may include within the zone any such property if the municipality in which the zone is located requests the commissioner to include such property not later than sixty days after October 1, 1983.
If more than fifty per cent of an approved redevelopment area under chapter 130 is located in an area eligible for LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07405 of 26 R01-HB.docx } Substitute Bill No.
If more than fifty per cent of an approved redevelopment area under chapter 130 is located in an area eligible for designation as an enterprise zone, the commissioner may include the entire redevelopment area in an enterprise zone.
7408 designation as an enterprise zone, the commissioner may include the entire redevelopment area in an enterprise zone.
The commissioner may, at any time after the designation of an area as an enterprise zone, include in such zone any property which is located within one hundred fifty feet of a stream, the center line of which is the boundary of a census tract included in such zone, and which property contains an existing building or facility, having an area equal to or greater than one hundred thousand square feet, that is or was formerly used for manufacturing purposes but is underutilized or vacant at the time the property is included in such zone.
LCO No.
6748 18 of 40 Raised Bill No.7408 The commissioner may, at any time after the designation of an area as an enterprise zone, include in such zone any property which is located within one hundred fifty feet of a stream, the center line of which is the boundary of a census tract included in such zone, and which property contains an existing building or facility, having an area equal to or greater than one hundred thousand square feet, that is or was formerly used for manufacturing purposes but is underutilized or vacant at the time the property is included in such zone.
(b) [Notwithstanding any provision of this section to the contrary, (1) any] (1) Any municipality which has an enterprise zone may with the approval of the commissioner, expand such enterprise zone by designating for inclusion in such zone one or more additional census tracts or contiguous portions of such census tract or tracts, provided LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07406 of 26 R01-HB.docx } Substitute Bill No.
(b) [Notwithstanding any provision of this section to the contrary, (1) any] (1) Any municipality which has an enterprise zone may with the approval of the commissioner, expand such enterprise zone by designating for inclusion in such zone one or more additional census tracts or contiguous portions of such census tract or tracts, provided such census tract or tracts are located in the municipality, are contiguous to the enterprise zone and meet the reduced criteria for contiguous census tracts in subsection (a) of this section, (2) any municipality which is contiguous to an enterprise zone which is located in another municipality may, with the approval of the commissioner, designate as an enterprise zone one or more census tracts or contiguous portions of such census tract or tracts, which are located in the municipality making such designation, provided such census tract or tracts meet the reduced criteria for contiguous census tracts in subsection (a) of this section and are contiguous to the enterprise zone located in the other municipality.
7408 such census tract or tracts are located in the municipality, are contiguous to the enterprise zone and meet the reduced criteria for contiguous census tracts in subsection (a) of this section, (2) any municipality which is contiguous to an enterprise zone which is located in another municipality may, with the approval of the commissioner, designate as an enterprise zone one or more census tracts or contiguous portions of such census tract or tracts, which are located in the municipality making such designation, provided such census tract or tracts meet the reduced criteria for contiguous census tracts in subsection (a) of this section and are contiguous to the enterprise zone located in the other municipality.
When approving such an expanded or new zone under this subsection, the commissioner shall consider the development rationale, proposed local effort and job creation potential of such expanded or new zone as LCO No.
When approving such an expanded or new zone under this subsection, the commissioner shall consider the development rationale, proposed local effort and job creation potential of such expanded or new zone as demonstrated by the municipality, and (3) any municipality which is contiguous to an enterprise zone which is located in another municipality may, with the approval of the commissioner and the legislative body of the municipality containing the enterprise zone, designate as an enterprise zone one or more census tracts or portions of such census tract or tracts that are contiguous to the enterprise zone in the other municipality, provided no municipality which designates an enterprise zone in this manner shall be considered to be a targeted investment community, as defined in section 32-222, or an enterprise zone community.
6748 19 of 40 Raised Bill No.7408 demonstrated by the municipality, and (3) any municipality which is contiguous to an enterprise zone which is located in another municipality may, with the approval of the commissioner and the legislative body of the municipality containing the enterprise zone, designate as an enterprise zone one or more census tracts or portions of such census tract or tracts that are contiguous to the enterprise zone in the other municipality, provided no municipality which designates an enterprise zone in this manner shall be considered to be a targeted investment community, as defined in section 32-222, or an enterprise zone community.
Each such area shall be in a municipality with a population of less than eighty thousand, in LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07407 of 26 R01-HB.docx } Substitute Bill No.
Each such area shall be in a municipality with a population of less than eighty thousand, in which there are one or more base or plant closures.
7408 which there are one or more base or plant closures.
As used in this subparagraph, (i) "base" means any United States or state of Connecticut military base or facility located in whole or in part within the state;
As used in this subparagraph, (i) "base" means any United States or state of Connecticut military base or facility located in whole or in part LCO No.
6748 20 of 40 Raised Bill No.7408 within the state;
In making his or her determination, LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07408 of 26 R01-HB.docx } Substitute Bill No.
In making his determination, the commissioner may also consider the vacancy rates for commercial and industrial facilities in a municipality and a municipality's program for the implementation of an effective enterprise zone program.
7408 the commissioner may also consider the vacancy rates for commercial and industrial facilities in a municipality and a municipality's program for the implementation of an effective enterprise zone program.
(A) One area shall be in a municipality with a population of not more than fifty thousand, as enumerated in the 2010 federal decennial census, and in which is located a United States Postal Service processing center that at any point in time employed one thousand or more persons, except that such area shall only be designated as an enterprise zone for a term of five years from the date any portion of the area is transferred, provided such transfer occurs on or after July 1, 2014, and (B) one area shall be in a municipality with a population of not less than seven thousand eight hundred and not more than seven thousand nine hundred, as enumerated in the 2010 federal decennial census, and having a total area of not more than 12.2 square miles.
(A) One area LCO No.
6748 21 of 40 Raised Bill No.7408 shall be in a municipality with a population of not more than fifty thousand, as enumerated in the 2010 federal decennial census, and in which is located a United States Postal Service processing center that at any point in time employed one thousand or more persons, except that such area shall only be designated as an enterprise zone for a term of five years from the date any portion of the area is transferred, provided such transfer occurs on or after July 1, 2014, and (B) one area shall be in a municipality with a population of not less than seven thousand eight hundred and not more than seven thousand nine hundred, as enumerated in the 2010 federal decennial census, and having a total area of not more than 12.2 square miles.
Notwithstanding the provisions of subsection (a) of this section, municipalities that were not distressed municipalities under the provisions of subsection (b) of section 32-9p on February 1, 1986, shall be eligible to designate areas as enterprise LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07409 of 26 R01-HB.docx } Substitute Bill No.
Notwithstanding the provisions of subsection (a) of this section, municipalities that were not distressed municipalities under the provisions of subsection (b) of section 32-9p on February 1, 1986, shall be eligible to designate areas as enterprise zones under this subdivision.
7408 zones under this subdivision.
The commissioner may designate any additional area as an enterprise zone if that area is designated as an enterprise zone, empowerment zone or enterprise community pursuant to any federal legislation.
The LCO No.
6748 22 of 40 Raised Bill No.7408 commissioner may designate any additional area as an enterprise zone if that area is designated as an enterprise zone, empowerment zone or enterprise community pursuant to any federal legislation.
(f) (1) Any municipality that has an area designated as an enterprise zone may, by vote of its legislative body or, in a municipality where the legislative body is a town meeting, by vote of the board of selectmen, opt out of the provisions of (A) subdivisions (59) and (60) of LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07410 of 26 R01-HB.docx } Substitute Bill No.
(f) (1) Any municipality that has an area designated as an enterprise zone may, by vote of its legislative body or, in a municipality where the legislative body is a town meeting, by vote of the board of selectmen, opt out of the provisions of (A) subdivisions (59) and (60) of section 12-81, as amended by this act, pertaining to an enterprise zone, or (B) section 32-71, as amended by this act, or (C) both.
7408 section 12-81, as amended by this act, pertaining to an enterprise zone, or (B) section 32-71, as amended by this act, or (C) both subparagraphs (A) and (B) of this subdivision.
Any such opt- out shall be effective on the date the chief elected official of such municipality notifies the Commissioner of Economic and Community Development of such vote, provided such opt out shall not affect (i) any enterprise zone preliminary or formal application approved for a business by the Department of Economic and Community Development or enterprise zone eligibility certificate issued by said department prior to such date, (ii) any business receiving an exemption pertaining to an enterprise zone pursuant to subdivision (59) or (60) of section 12-81, as amended by this act, at the time of such LCO No.
Any such opt-out shall be effective on the date the chief elected official of such municipality notifies the Commissioner of Economic and Community Development of such vote, provided such opt-out shall not affect (i) any enterprise zone preliminary or formal application approved for a business by the Department of Economic and Community Development or enterprise zone eligibility certificate issued by said department prior to such date, (ii) any business receiving an exemption pertaining to an enterprise zone pursuant to subdivision (59) or (60) of section 12-81, as amended by this act, at the time of such notice, (iii) any real property that has its assessment fixed or deferred pursuant to subsection (a) or (c) of section 32-71, as amended by this act, at the time of such notice, or (iv) any real property planned to be constructed or personal property planned to be purchased, pursuant to an economic incentive agreement entered into by a business with the Department of Economic and Community Development, provided such agreement was executed on or before December 31, 2018.
6748 23 of 40 Raised Bill No.7408 notice, or (iii) any real property that has its assessment fixed or deferred pursuant to subsection (a) or (c) of section 32-71, as amended by this act, at the time of such notice.
5.
11.
(59) (a) With respect to assessment years commencing on or after October 1, 2012, any manufacturing facility, as defined in section 32- 9p, acquired, constructed, substantially renovated or expanded on or after July 1, 1978, in a distressed municipality, as defined in said section, in a targeted investment community, as defined in section 32- 222, in an enterprise zone designated pursuant to section 32-70, as amended by this act, provided, if the municipality in which an LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07411 of 26 R01-HB.docx } Substitute Bill No.
(59) (a) With respect to assessment years commencing on or after October 1, 2012, any manufacturing facility, as defined in section 32- 9p, acquired, constructed, substantially renovated or expanded on or after July 1, 1978, in a distressed municipality, as defined in said section, in a targeted investment community, as defined in section 32- 222, in an enterprise zone designated pursuant to section 32-70, as amended by this act, provided, if the municipality in which an enterprise zone is located has opted out of the provisions of this subdivision and subdivision (60) of this section in accordance with subdivision (1) of subsection (f) of section 32-70, as amended by this act, the facility is eligible under said subsection (f), or in an airport development zone established pursuant to section 32-75d, and for which an eligibility certificate has been issued by the Department of Economic and Community Development, and any manufacturing plant designated by the Commissioner of Economic and Community Development under subsection (a) of section 32-75c as follows:
7408 enterprise zone is located has opted out of the provisions of this subdivision and subdivision (60) of this section in accordance with subdivision (1) of subsection (f) of section 32-70, as amended by this act, the facility is eligible under said subsection (f), or in an airport development zone established pursuant to section 32-75d, and for which an eligibility certificate has been issued by the Department of Economic and Community Development, and any manufacturing plant designated by the Commissioner of Economic and Community Development under subsection (a) of section 32-75c as follows:
To the extent of eighty per cent of its valuation for purposes of assessment in each of the five full assessment years following the assessment year in which the acquisition, construction, renovation or expansion of the manufacturing facility is completed, except that a manufacturing facility having a North American Industrial Classification Code of 325411 or 325412 and having at least one thousand full-time LCO No.
To the extent of eighty per cent of its valuation for purposes of assessment in each of the five full assessment years following the assessment year in which the acquisition, construction, renovation or expansion of the manufacturing facility is completed, except that a manufacturing facility having a North American Industrial Classification Code of 325411 or 325412 and having at least one thousand full-time employees, as defined in subsection (f) of section 32-9j, shall be eligible to have the assessment period extended for five additional years upon approval of the commissioner, in accordance with all applicable regulations, provided such full-time employees have not been relocated from another facility in the state operated by the same eligible applicant;
6748 24 of 40 Raised Bill No.7408 employees, as defined in subsection (f) of section 32-9j, shall be eligible to have the assessment period extended for five additional years upon approval of the commissioner, in accordance with all applicable regulations, provided such full-time employees have not been relocated from another facility in the state operated by the same eligible applicant;
(ii) in the case of an investment of more than thirty-nine million dollars but not more than fifty-nine million dollars in the service facility, to the extent of fifty per cent of its valuation for purposes of assessment in each of the five full assessment LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07412 of 26 R01-HB.docx } Substitute Bill No.
(ii) in the case of an investment of more than thirty-nine million dollars but not more than fifty-nine million dollars in the service facility, to the extent of fifty per cent of its valuation for purposes of assessment in each of the five full assessment years following the assessment year in which the acquisition, construction, renovation or expansion of the service facility is completed;
7408 years following the assessment year in which the acquisition, construction, renovation or expansion of the service facility is completed;
or (v) in the case of an investment of more than ninety million dollars in the service facility, to the extent of eighty per cent of its valuation for purposes of assessment in each of the five full assessment years following the assessment year in which the acquisition, construction, renovation or expansion of the service facility is completed, except that any financial institution, as defined in subsection (b) of section 32-236, having at least four thousand qualified employees, as determined in accordance with an agreement pursuant to subsection (b) of section 32-236, shall be eligible to have the assessment period extended for five additional years upon approval of the commissioner, in accordance with all applicable regulations, provided such full-time employees have not been relocated from another facility in the state operated by the same eligible applicant.
or (v) in the case of an investment of more LCO No.
6748 25 of 40 Raised Bill No.7408 than ninety million dollars in the service facility, to the extent of eighty per cent of its valuation for purposes of assessment in each of the five full assessment years following the assessment year in which the acquisition, construction, renovation or expansion of the service facility is completed, except that any financial institution, as defined in subsection (b) of section 32-236, having at least four thousand qualified employees, as determined in accordance with an agreement pursuant to subsection (b) of section 32-236, shall be eligible to have the assessment period extended for five additional years upon approval of the commissioner, in accordance with all applicable regulations, provided such full-time employees have not been relocated from another facility in the state operated by the same eligible applicant.
In the case of a manufacturing facility, manufacturing plant LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07413 of 26 R01-HB.docx } Substitute Bill No.
In the case of a manufacturing facility, manufacturing plant or a service facility which consists of a constructed, renovated or expanded portion of an existing plant, the assessed valuation of the facility or manufacturing plant is the difference between the assessed valuation of the plant prior to its being improved and the assessed valuation of the plant upon completion of the improvements.
7408 or a service facility which consists of a constructed, renovated or expanded portion of an existing plant, the assessed valuation of the facility or manufacturing plant is the difference between the assessed valuation of the plant prior to its being improved and the assessed valuation of the plant upon completion of the improvements.
If during any such assessment year, however, any facility for which an eligibility certificate has been issued ceases to qualify as a manufacturing facility, manufacturing plant or a service facility, the entitlement to the exemption allowed by this subdivision shall terminate for the assessment year following the date on which the qualification ceases, and there shall not be a pro rata application of the exemption.
If during any such assessment year, however, any facility for which an eligibility certificate has been issued ceases to qualify as a LCO No.
6748 26 of 40 Raised Bill No.7408 manufacturing facility, manufacturing plant or a service facility, the entitlement to the exemption allowed by this subdivision shall terminate for the assessment year following the date on which the qualification ceases, and there shall not be a pro rata application of the exemption.
Failure to file such application in this manner and form within the time limit prescribed shall constitute a waiver of the right to such exemption for such assessment year, unless (i) an extension of time is allowed pursuant to section 12-81k, and upon payment of the required fee for late filing, or (ii) the person claiming LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-074014 of 26 R01-HB.docx } Substitute Bill No.
Failure to file such application in this manner and form within the time limit prescribed shall constitute a waiver of the right to such exemption for such assessment year, unless (i) an extension of time is allowed pursuant to section 12-81k, and upon payment of the required fee for late filing, or (ii) the person claiming such exemption received a certificate of eligibility on or after October 1, 2009, and is located in a municipality in New Haven County with a population of not less than eighteen thousand five hundred and not more than nineteen thousand five hundred, as enumerated in the 2010 federal decennial census;
7408 such exemption received a certificate of eligibility on or after October 1, 2009, and is located in a municipality in New Haven County with a population of not less than eighteen thousand five hundred and not more than nineteen thousand five hundred, as enumerated in the 2010 federal decennial census;
(60) (a) (1) Machinery and equipment which represents an addition to the assessment or grand list of the municipality in which this exemption is claimed and is installed in any manufacturing facility, as defined in section 32-9p, which facility is or has been constructed, or substantially renovated or expanded on or after July 1, 1978, in a distressed municipality, targeted investment community, enterprise LCO No.
(60) (a) (1) Machinery and equipment which represents an addition to the assessment or grand list of the municipality in which this exemption is claimed and is installed in any manufacturing facility, as defined in section 32-9p, which facility is or has been constructed, or substantially renovated or expanded on or after July 1, 1978, in a distressed municipality, targeted investment community, enterprise zone designated pursuant to section 32-70, as amended by this act, provided, if the municipality in which an enterprise zone is located has opted out of the provisions of this subdivision and subdivision (59) of this section in accordance with subdivision (1) of subsection (f) of section 32-70, as amended by this act, the facility or business is eligible under said subsection (f), or in an airport development zone established pursuant to section 32-75d, and for which an eligibility certificate has been issued by the Department of Economic and Community Development, concurrently with and directly attributable to such construction, renovation or expansion, (2) machinery and equipment which represents an addition to the assessment or grand list of the municipality in which this exemption is claimed and is installed, or machinery and equipment existing, in any manufacturing facility, as defined in section 32-9p, which facility is or has been acquired on or after July 1, 1978, in a distressed municipality, targeted investment community, enterprise zone designated pursuant to section 32-70, as amended by this act, provided, if the municipality in which an enterprise zone is located has opted out of the provisions of this subdivision and subdivision (59) of this section in accordance with subdivision (1) of subsection (f) of section 32-70, as amended by this act, the facility or business is eligible under said subsection (f), or in an airport development zone established pursuant to section 32-75d, and for which an eligibility certificate has been issued by the Department LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07415 of 26 R01-HB.docx } Substitute Bill No.
6748 27 of 40 Raised Bill No.7408 zone designated pursuant to section 32-70, as amended by this act, provided, if the municipality in which an enterprise zone is located has opted out of the provisions of this subdivision and subdivision (59) of this section in accordance with subdivision (1) of subsection (f) of section 32-70, as amended by this act, the facility or business is eligible under said subsection (f), or in an airport development zone established pursuant to section 32-75d, and for which an eligibility certificate has been issued by the Department of Economic and Community Development, concurrently with and directly attributable to such construction, renovation or expansion, (2) machinery and equipment which represents an addition to the assessment or grand list of the municipality in which this exemption is claimed and is installed, or machinery and equipment existing, in any manufacturing facility, as defined in section 32-9p, which facility is or has been acquired on or after July 1, 1978, in a distressed municipality, targeted investment community, enterprise zone designated pursuant to section 32-70, as amended by this act, provided, if the municipality in which an enterprise zone is located has opted out of the provisions of this subdivision and subdivision (59) of this section in accordance with subdivision (1) of subsection (f) of section 32-70, as amended by this act, the facility or business is eligible under said subsection (f), or in an airport development zone established pursuant to section 32-75d, and for which an eligibility certificate has been issued by the Department of Economic and Community Development, and (3) machinery and equipment acquired and installed on or after October 1, 1986, in a manufacturing facility that is or has at one time been certified as eligible for the exemption under this subparagraph in accordance with section 32-9r, as amended by this act, and which continues to be used for manufacturing purposes, provided such machinery and equipment is installed in conjunction with an expansion program that satisfies the requirements for a manufacturing facility, as defined in section 32-9p, and is contiguous to and represents an increase in square feet of floor space of not less than fifty per cent of the floor space in the certified manufacturing facility, as follows:
7408 of Economic and Community Development, and (3) machinery and equipment acquired and installed on or after October 1, 1986, in a manufacturing facility that is or has at one time been certified as eligible for the exemption under this subparagraph in accordance with section 32-9r, as amended by this act, and which continues to be used for manufacturing purposes, provided such machinery and equipment is installed in conjunction with an expansion program that satisfies the requirements for a manufacturing facility, as defined in section 32-9p, and is contiguous to and represents an increase in square feet of floor space of not less than fifty per cent of the floor space in the certified manufacturing facility, as follows:
To the extent of eighty per cent of its LCO No.
To the extent of eighty per cent of its valuation for purposes of assessment in each of the five full assessment years for which the manufacturing facility in which it is installed qualifies for an exemption under subdivision (59) of this section, except that a facility having a code classification 2833 or 2834 in the Standard Industrial Code Classification Manual, United States Office of Management and Budget, 1987 edition, wherein at least one thousand new full-time employees, as defined in subsection (f) of section 32-9j, are employed, shall be eligible to have the assessment period under this subdivision extended for five additional years upon approval of the commissioner, provided the commissioner approves an extension of the assessment period under subdivision (59) of this section for said facility;
6748 28 of 40 Raised Bill No.7408 valuation for purposes of assessment in each of the five full assessment years for which the manufacturing facility in which it is installed qualifies for an exemption under subdivision (59) of this section, except that a facility having a code classification 2833 or 2834 in the Standard Industrial Code Classification Manual, United States Office of Management and Budget, 1987 edition, wherein at least one thousand new full-time employees, as defined in subsection (f) of section 32-9j, are employed, shall be eligible to have the assessment period under this subdivision extended for five additional years upon approval of the commissioner, provided the commissioner approves an extension of the assessment period under subdivision (59) of this section for said facility;
(b) (1) Machinery and equipment which represents an addition to the assessment or grand list of the municipality in which this exemption is claimed and is installed in any service facility, as defined in section 32-9p, which facility is or has been constructed, or substantially renovated or expanded on or after July 1, 1996, and for which an eligibility certificate has been issued by the Department of Economic and Community Development, concurrently with and directly attributable to such construction, renovation or expansion, (2) machinery and equipment which represents an addition to the assessment or grand list of the municipality in which this exemption is claimed and is installed, or machinery and equipment existing, in any LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07416 of 26 R01-HB.docx } Substitute Bill No.
(b) (1) Machinery and equipment which represents an addition to the assessment or grand list of the municipality in which this exemption is claimed and is installed in any service facility, as defined in section 32-9p, which facility is or has been constructed, or substantially renovated or expanded on or after July 1, 1996, and for which an eligibility certificate has been issued by the Department of Economic and Community Development, concurrently with and directly attributable to such construction, renovation or expansion, (2) machinery and equipment which represents an addition to the assessment or grand list of the municipality in which this exemption is claimed and is installed, or machinery and equipment existing, in any service facility, as defined in section 32-9p, which facility is or has been acquired on or after July 1, 1996, and for which an eligibility certificate has been issued by the department, and (3) machinery and equipment acquired and installed on or after July 1, 1996, in a service facility that is or has at one time been certified as eligible for the exemption under this subparagraph in accordance with section 32-9r, as amended by this act, and which continues to be used for service purposes, provided such machinery and equipment is installed in conjunction with an expansion program that satisfies the requirements for a service facility, as defined in section 32-9p, and is contiguous to and represents an LCO No.
7408 service facility, as defined in section 32-9p, which facility is or has been acquired on or after July 1, 1996, and for which an eligibility certificate has been issued by the department, and (3) machinery and equipment acquired and installed on or after July 1, 1996, in a service facility that is or has at one time been certified as eligible for the exemption under this subparagraph in accordance with section 32-9r, as amended by this act, and which continues to be used for service purposes, provided such machinery and equipment is installed in conjunction with an expansion program that satisfies the requirements for a service facility, as defined in section 32-9p, and is contiguous to and represents an increase in square feet of floor space of not less than fifty per cent of the floor space in the certified service facility, as follows:
6748 29 of 40 Raised Bill No.
7408 increase in square feet of floor space of not less than fifty per cent of the floor space in the certified service facility, as follows:
or (v) in the case of an investment of more than ninety million dollars in the service facility, to the extent of LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0740817 of 26 R01-HB.docx } Substitute Bill No.
or (v) in the case of an investment of more than ninety million dollars in the service facility, to the extent of eighty per cent of its valuation for purposes of assessment in each of the five full assessment years for which the service facility in which it is installed qualifies for an exemption under subdivision (59) of this section, except that any financial institution, as defined in section 32- 236, having at least four thousand qualified employees, as determined in accordance with an agreement pursuant to subsection (c) of section 32-236, shall be eligible to have the assessment period extended for five additional years upon approval of the commissioner, in accordance with all applicable regulations, provided such full-time employees LCO No.
7408 eighty per cent of its valuation for purposes of assessment in each of the five full assessment years for which the service facility in which it is installed qualifies for an exemption under subdivision (59) of this section, except that any financial institution, as defined in section 32- 236, having at least four thousand qualified employees, as determined in accordance with an agreement pursuant to subsection (c) of section 32-236, shall be eligible to have the assessment period extended for five additional years upon approval of the commissioner, in accordance with all applicable regulations, provided such full-time employees have not been relocated from another facility in the state operated by the same eligible applicant.
6748 30 of 40 Raised Bill No.7408 have not been relocated from another facility in the state operated by the same eligible applicant.
Failure to file such application in this manner and form within the time limit prescribed shall constitute a waiver of the right to such exemption for such assessment year, unless an LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07418 of 26 R01-HB.docx } Substitute Bill No.
Failure to file such application in this manner and form within the time limit prescribed shall constitute a waiver of the right to such exemption for such assessment year, unless an extension of time is allowed pursuant to section 12-81k, and upon payment of the required fee for late filing.
7408 extension of time is allowed pursuant to section 12-81k, and upon payment of the required fee for late filing.
6.
12.
(a) (1) Any person may apply to the department for a determination as to whether the facility described in an application qualifies as a manufacturing facility or service facility.
(a) Any person may apply to the department for a determination as to whether the facility described in an application qualifies as a LCO No.
Applications for eligibility certificates [are to] shall be made on the forms and in the manner prescribed by the department.
6748 31 of 40 Raised Bill No.7408 manufacturing facility or service facility.
In evaluating each application the department may require the submission of all books, records, documents, drawings, specifications, certificationsand other evidentiary items [which it] that the department deems appropriate.
Applications for eligibility certificates are to be made on the forms and in the manner prescribed by the department.
(2) No eligibility certificate shall be issued after March 1, 1991, for a manufacturing facility located in a distressed municipality [which] that does not qualify as a targeted investment community unless the department has issued to the applicant a commitment letter for such facility prior to March 1, 1991.
In evaluating each application the department may require the submission of all books, records, documents, drawings, specifications, certifications and other evidentiary items which it deems appropriate.
Notwithstanding the provisions of this subsection, an eligibility certificate may be issued by the department after March 1, 1991, for a qualified manufacturing facility acquired, constructed or substantially renovated in a distressed municipality, provided the commissioner determines that such acquisition, construction or substantial renovation was initiated prior to March 1, 1991, and was legitimately induced by the prospect of assistance under section 12-217e and subdivisions (59) and (60) of section 12-81, as amended by this act, respectively.
No eligibility certificate shall be issued after March 1, 1991, for a manufacturing facility located in a distressed municipality which does not qualify as a targeted investment community unless the department has issued to the applicant a commitment letter for such facility prior to March 1, 1991.
(3) The department may issue an eligibility certificate for a qualified manufacturing facility or a qualified service facility located in a targeted investment community upon determination by the commissioner (A) that the acquisition, construction or substantial renovation relating to the qualified manufacturing facility or qualified service facility in such community was induced by the prospect of LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07419 of 26 R01-HB.docx } Substitute Bill No.
Notwithstanding the provisions of this subsection, an eligibility certificate may be issued by the department after March 1, 1991, for a qualified manufacturing facility acquired, constructed or substantially renovated in a distressed municipality provided the commissioner determines that such acquisition, construction or substantial renovation was initiated prior to March 1, 1991, and was legitimately induced by the prospect of assistance under section 12-217e and subdivisions (59) and (60) of section 12-81, respectively.
7408 assistance under subdivisions (59) and (60) of section 12-81, as amended by this act;
The department may issue an eligibility certificate for a qualified manufacturing facility or a qualified service facility located in a targeted investment community upon determination by the commissioner (A) that the acquisition, construction or substantial renovation relating to the qualified manufacturing facility or qualified service facility in such community was induced by the prospect of assistance under subdivisions (59) and (60) of section 12-81, as amended by this act;
(4) The department shall issue an eligibility certificate for a qualified manufacturing facility located in an airport development zone established pursuant to section 32-75d, and may issue an eligibility certificate for a facility described in subparagraph (D) of subdivision (2) of subsection (d) of section 32-9p, upon determination by the department [(i)] (A) that the acquisition, construction or substantial renovation relating to the qualified manufacturing facility or facility described in said subparagraph (D) in the airport development zone was induced by the prospect of assistance under subdivisions (59) and (60) of section 12-81, as amended by this act;
The department shall issue an eligibility certificate for a qualified manufacturing facility located in an airport development zone established pursuant to section 32-75d, and may issue an eligibility certificate for a facility described in subparagraph (D) of subdivision (2) of subsection (d) of section 32-9p, upon determination by the department (i) that the acquisition, construction or substantial renovation relating to the qualified manufacturing facility or facility described in said subparagraph (D) in LCO No.
[(ii)] (B) the applicant demonstrates an economic need and there is an economic benefit to the state without causing an economic detriment to or conflict with an existing zone;
6748 32 of 40 Raised Bill No.7408 the airport development zone was induced by the prospect of assistance under subdivisions (59) and (60) of section 12-81, as amended by this act;
and [(iii)] (C) that the applicant serves an airport-related function or relies substantially on airport services.
(ii) the applicant demonstrates an economic need and there is an economic benefit to the state without causing an economic detriment to or conflict with an existing zone;
(5) The department shall issue an eligibility certificate if the commissioner determines [(1)] (A) that the manufacturing facility is located in an enterprise zone designated pursuant to section 32-70, as amended by this act, and is a qualified manufacturing facility, or [(2)] (B) that the facility is a plant, building, other real property improvement, or part thereof, [which] that is located in a municipality with an entertainment district designated under section 32-76 or established under section 2 of public act 93-311, and [which] that qualifies as a "manufacturing facility" under subsection (d) of section 32-9p in that it is to be used in the production of entertainment products, including multimedia products, or as part of the airing, display or provision of live entertainment for stage or broadcast, including support services such as set manufacturers, scenery makers, sound and video equipment providers and manufacturers, stage and screen writers, providers of capital for the entertainment industry and agents for talent, writers, producers and music properties and LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07420 of 26 R01-HB.docx } Substitute Bill No.
and (iii) that the applicant serves an airport-related function or relies substantially on airport services.
7408 technological infrastructure support including, but not limited to, fiber optics, necessary to support multimedia and other entertainment formats, except entertainment provided by or shown at a gambling or gaming facility or a facility whose primary business is the sale or serving of alcoholic beverages.
The department shall issue an eligibility certificate if the commissioner determines (1) that the manufacturing facility is located in an enterprise zone designated pursuant to section 32-70, as amended by this act, and is a qualified manufacturing facility, or (2) that the facility is a plant, building, other real property improvement, or part thereof, which is located in a municipality with an entertainment district designated under section 32-76 or established under section 2 of public act 93-311, and which qualifies as a "manufacturing facility" under subsection (d) of section 32-9p in that it is to be used in the production of entertainment products, including multimedia products, or as part of the airing, display or provision of live entertainment for stage or broadcast, including support services such as set manufacturers, scenery makers, sound and video equipment providers and manufacturers, stage and screen writers, providers of capital for the entertainment industry and agents for talent, writers, producers and music properties and technological infrastructure support including, but not limited to, fiber optics, necessary to support multimedia and other entertainment formats, except entertainment provided by or shown at a gambling or gaming facility or a facility whose primary business is the sale or serving of alcoholic beverages.
Prior to July 1, 2018, upon a favorable finding, the department shall issue to the applicant a certificate to the effect that the facility concerned is a manufacturing facility or a service facility and is eligible for assistance under section 12-217e and subdivisions (59) and (60) of section 12-81, as amended by this act.
Prior to July 1, 2018, upon a favorable finding, the department shall issue to the LCO No.
6748 33 of 40 Raised Bill No.7408 applicant a certificate to the effect that the facility concerned is a manufacturing facility or a service facility and is eligible for assistance under section 12-217e and subdivisions (59) and (60) of section 12-81, as amended by this act.
The department shall reconsider the application based upon the information presented at the public LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07421 of 26 R01-HB.docx } Substitute Bill No.
The department shall reconsider the application based upon the information presented at the public hearing and reaffirm or change its earlier determination within ten days of the hearing.
7408 hearing and reaffirm or change its earlier determination within ten days of the hearing.
The department shall reconsider the application based upon the information presented at the public hearing and reaffirm or change its earlier determination within ten days of the hearing.
The department shall reconsider the application based upon the information presented at the public LCO No.
6748 34 of 40 Raised Bill No.7408 hearing and reaffirm or change its earlier determination within ten days of the hearing.
Such regulations LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07422 of 26 R01-HB.docx } Substitute Bill No.
Such regulations shall provide that establishments in the category of business support services, as defined in subsection (b) of section 32-222, or manufacturing facilities, as defined in subsection (d) of section 32-9p, may be eligible for a certificate if they are located in an enterprise zone.
7408 shall provide that establishments in the category of business support services, as defined in subsection (b) of section 32-222, or manufacturing facilities, as defined in subsection (d) of section 32-9p, may be eligible for a certificate if they are located in an enterprise zone.
7.
13.
(a) The state shall make an annual grant payment to each municipality, to each district, as defined in section 7-325, which is located in a distressed municipality, targeted investment community, enterprise zone or municipality within an airport development zone established pursuant to section 32-75d and to each special services district created pursuant to chapter 105a which is located in a distressed municipality, targeted investment community or enterprise zone in the amount of fifty per cent of the amount of that tax revenue which the municipality or district would have received except for the provisions of subdivisions (59) and (60) of section 12-81, as amended by this act, or subdivision (70) of section 12-81.
(a) The state shall make an annual grant payment to each municipality, to each district, as defined in section 7-325, which is located in a distressed municipality, targeted investment community, enterprise zone or municipality within an airport development zone LCO No.
6748 35 of 40 Raised Bill No.7408 established pursuant to section 32-75d and to each special services district created pursuant to chapter 105a which is located in a distressed municipality, targeted investment community or enterprise zone in the amount of fifty per cent of the amount of that tax revenue which the municipality or district would have received except for the provisions of subdivisions (59) and (60) of section 12-81, as amended by this act, or subdivision (70) of section 12-81.
The secretary shall, on or before the December fifteenth next succeeding the deadline for the receipt of such claims, LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07423 of 26 R01-HB.docx } Substitute Bill No.
The secretary shall, on or before the December fifteenth next succeeding the deadline for the receipt of such claims, certify to the Comptroller the amount due under this section, including any modification of such claim made prior to December fifteenth, to each municipality or district which has made a claim under the provisions of this section.
7408 certify to the Comptroller the amount due under this section, including any modification of such claim made prior to December fifteenth, to each municipality or district which has made a claim under the provisions of this section.
If any modification is made as the result of the provisions of this section on or after the December first following the date on which the municipality or district has provided the amount of tax revenue in question, any adjustment to the amount due to any municipality or district for the period for which such modification was made shall be made in the next payment the Treasurer shall make to such municipality or district pursuant to this section.
If any modification is made as the result of the provisions of this section on or after the December first following the date on which the municipality or district has provided the amount of tax revenue in LCO No.
6748 36 of 40 Raised Bill No.7408 question, any adjustment to the amount due to any municipality or district for the period for which such modification was made shall be made in the next payment the Treasurer shall make to such municipality or district pursuant to this section.
8.
14.
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07424 of 26 R01-HB.docx } Substitute Bill No.
(2) Such fixed assessment shall be for a period of seven years from the time of such improvement and shall defer any increase in assessment attributable to such improvements according to the following schedule:
7408 (2) Such fixed assessment shall be for a period of seven years from the time of such improvement and shall defer any increase in assessment attributable to such improvements according to the following schedule:
T1 Percentage of Increase T2 Year Deferred T3 First 100 LCO No.
T1 Percentage of Increase T2 Year Deferred T3 First 100 T4 Second 100 T5 Third 50 T6 Fourth 40 T7 Fifth 30 T8 Sixth 20 T9 Seventh 10 Notwithstanding the provisions of this [subsection] subdivision, a municipality may negotiate the fixing of assessments on the portion of improvements, by a taxpayer, which exceed a value of eighty million dollars to real property which is to be used for commercial or retail purposes.
6748 37 of 40 Raised Bill No.7408 T4 Second 100 T5 Third 50 T6 Fourth 40 T7 Fifth 30 T8 Sixth 20 T9 Seventh 10 Notwithstanding the provisions of this [subsection] subdivision, a municipality may negotiate the fixing of assessments on the portion of improvements, by a taxpayer, which exceed a value of eighty million dollars to real property which is to be used for commercial or retail purposes.
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-074025 of 26 R01-HB.docx } Substitute Bill No.
(c) In the event of a general revaluation by any such municipality in the year in which such improvement is completed, resulting in any increase in the assessment on such property, only that portion of the increase resulting from such improvement shall be deferred.
7408 (c) In the event of a general revaluation by any such municipality in the year in which such improvement is completed, resulting in any increase in the assessment on such property, only that portion of the increase resulting from such improvement shall be deferred.
In the event of a general revaluation in any year after the year in which such improvement is completed, such deferred assessment shall be LCO No.
In the event of a general revaluation in any year after the year in which such improvement is completed, such deferred assessment shall be increased or decreased in proportion to the increase or decrease in the total assessment on such property as a result of such revaluation.
6748 38 of 40 Raised Bill No.
7408 increased or decreased in proportion to the increase or decrease in the total assessment on such property as a result of such revaluation.
Section 1 July 1, 2019 22a-498 Sec.
Section 1 July 1, 2019, and 12-408(1) applicable to sales occurring on or after July 1, 2019 Sec.
2 from passage New section Sec.
2 July 1, 2019 12-411(1) Sec.
3 from passage New section Sec.
3 July 1, 2019 New section Sec.
4 July 1, 2019 32-70 Sec.
4 July 1, 2019 New section from passage Sec.
5 July 1, 2019 12-81(59) and (60) Sec.
5 12-408d Sec.
6 July 1, 2019 32-9r Sec.
6 July 1, 2019 New section Sec.
7 July 1, 2019 32-9s Sec.
7 July 1, 2019 22a-498 Sec.
8 July 1, 2019 32-71 Statement of Legislative Commissioners:
8 from passage New section Sec.
In Section 6(a), Subdiv.
9 from passage New section Sec.
designators were added.
10 July 1, 2019 32-70 Sec.
FIN Joint Favorable Subst.
11 July 1, 2019 12-81(59) and (60) July 1, 2019 Sec.
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07408- 26 of 26 R01-HB.docx }
12 32-9r Sec.
13 July 1, 2019 32-9s Sec.
14 July 1, 2019 32-71 Statement of Purpose:
To diversify municipal revenue options, require a study of the PILOT grants program with respect to certain towns and a study of the property tax exemption for machinery and equipment under subdivision (76) of section 12-81 of the general statutes, and authorize municipalities to opt out of certain provisions related to enterprise zones.
LCO No.
6748 39 of 40 Raised Bill No.
7408 [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.] LCO No.
6748 40 of 40
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Action History

  1. FILE NO. 1030

  2. SENATE CALENDAR NUMBER 644

  3. FAV. RPT., TAB. FOR CAL., SEN.

  4. HOUSE PASSED, HOUSE AMEND. SCH. A

  5. HOUSE ADOPTED HOUSE AMEND. SCH. A

  6. FILE NO. 915

  7. HOUSE CALENDAR NUMBER 622

  8. FAV. RPT., TABLED FOR HOUSE CALENDER

  9. RPTD. OUT OF LCO

  10. REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 05/20/19

  11. FILED WITH LCO

  12. Joint Favorable Substitute

  13. PUBLIC HEARING 0410

  14. REF. TO JOINT COMM. ON Finance, Revenue and Bonding

Sponsors

  • Catherine F. Abercrombie · Primary
  • Michael D'Agostino · Primary
  • David Michel · Primary
  • Brian Lanoue · Primary
  • Josh Elliott · Primary

Sponsorship breakdown

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5 sponsors · 0 co-sponsors · 182 not signed on

Sponsors (5)

Co-sponsors (0)

None.

Not signed on (182)

182 members have not signed on to this bill.

Show all 182 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation environment technology
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors HB 7408?
HB 7408 is sponsored by Abercrombie, Catherine F., D'Agostino, Michael, Michel, David, Brian Lanoue (Republican), and Josh Elliott (Democratic).
What is the current status of HB 7408?
This bill died with 2019 Regular Session. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HB 7408?
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