SB 928 — AN ACT CONCERNING THE TAX EXEMPTION FOR REAL PROPERTY USED FOR CERTAIN PURPOSES.

General Assembly RaisedSubstitute Bill No.

928 January Session, 2019 LCOAN No.ACT CONCERNING THE TAX EXEMPTION FOR REAL PROPERTY USED FOR CERTAIN PURPOSES.

3607 Referred to Committee on PLANNING AND DEVELOPMENT Introduced by:

(PD) AN ACT CONCERNING THE RECOVERY OF ATTORNEY'S FEES IN ACTIONS FOR WRONGFUL PROPERTY TAX ASSESSMENT.

SectionSubdivision 12-119(7) of section 12-81 of the general statutes is repealed and the following is substituted in lieu thereof (Effective JanuaryOctober 1, 2020):2019, and applicable to assessment years commencing on or after October 1, 2019):

When(7) it(A) isSubject claimedto thatthe aprovisions taxof hassections been12-87 laidand on12-88, propertyas notamended taxableby inthis act, the townreal property of, or cityheld in whosetrust taxfor, lista suchcorporation propertyorganized wasexclusively set,for scientific, educational, literary, historical or thatcharitable apurposes taxor laidfor ontwo propertyor wasmore computedsuch onpurposes anand assessmentused which,exclusively underfor allcarrying theout circumstances,one wasor manifestlymore excessiveof andsuch couldpurposes notor havefor beenthe arrivedpurpose atof exceptpreserving byopen disregardingspace theland, provisionsas ofdefined thein statutessection 12- 107b, for determiningany of the valuationuses ofspecified in said section, that is owned by any such property,corporation, and the ownerpersonal thereofproperty of, or held in trust for, any lesseesuch thereofcorporation, whoseprovided lease(i) hasany beenofficer, recordedmember asor providedemployee inthereof sectiondoes 47-not 19receive andor whoat isany boundfuture undertime theshall termsnot ofreceive hisany leasepecuniary toprofit payfrom realthe propertyoperations taxes,thereof, priorexcept toreasonable thecompensation paymentfor services in effecting one or more of such tax,purposes may,or inas additionproper tobeneficiary theof otherits remediesstrictly providedcharitable bypurposes, law,and make(ii) applicationin for1965, reliefand toquadrennially thethereafter, superiora courtstatement forshall be filed on or before the judicialfirst districtday inof whichNovember suchwith townthe assessor or cityboard isof situated.assessors of any LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00928-R01 of 4 SB.docx Substitute Bill No.

Such928 applicationtown, mayconsolidated betown madeand withincity oneor yearconsolidated fromtown theand dateborough, asin of which theany propertyof wasits lastproperty evaluatedclaimed forto purposesbe ofexempt taxationis andsituated. LCO No.

3607Such 1statement ofshall 2be Raisedfiled Billon No.a form provided by such assessor or board of assessors.

928The real property shall be servedeligible andfor returnedthe inexemption theregardless sameof mannerwhether asit is requiredused inby theanother casecorporation oforganized aexclusively summonsfor inscientific, aeducational, civilliterary, action,historical andor thecharitable pendencypurposes ofor suchfor applicationtwo shallor notmore suspendsuch actionpurposes; upon the tax against the applicant.

In(B) allOn suchand actions,after the[July Superior1, Court1967] shallOctober have1, power2019, tohousing grantsubsidized, suchin reliefwhole uponor such terms and in suchpart, mannerby andfederal, formstate asor tolocal justicegovernment and equityhousing appertains,for [andpersons costs]or including,families butof notlow limitedand to,moderate theincome recoveryshall ofnot reasonableconstitute attorney'sa feescharitable ifpurpose suchunder assessmentthis issection. reduced by said court.

CostsAs mayused bein taxedthis atsubdivision, "housing" shall not include real property used for [temporary] housing belonging to, or held in trust for, any corporation organized exclusively for charitable purposes and exempt from taxation for federal income tax purposes, the discretionprimary use of which property is one or more of the court.following:

If(i) suchAn assessmentorphanage; is reduced by said court, the applicant shall be reimbursed by the town or city for any overpayment of taxes in accordance with the judgment of said court.

(ii) a drug or alcohol treatment or rehabilitation facility;

(iii) housing for persons who are homeless, persons with a mental health disorder, persons with intellectual or physical disability or victims of domestic violence;

(iv) housing for ex-offenders or for individuals participating in a program sponsored by the state Department of Correction or Judicial Branch;

[and] or (v) short-term housing operated by a charitable organization where the average length of stay is less than six months.

The operation of such housing, including the receipt of any rental payments, by such charitable organization shall be deemed to be an exclusively charitable purpose;

Sec.

2.

Section 12-88 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2019, and applicable to assessment years commencing on or after October 1, 2019):

Real property belonging to, or held in trust for, any organization mentioned in subdivision (7), (10), (11), (13), (14), (15), (16) or (18) of section 12-81, as amended by this act, which real property is so held for one or more of the purposes stated in the applicable subdivision, and LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00922 of 4 R02-SB.docx } Substitute Bill No.

928 from which real property no rents, profits or income are derived, shall be exempt from taxation though not in actual use therefor by reason of the absence of suitable buildings and improvements thereon, if the construction of such buildings or improvements is in progress.

The real property belonging to, or held in trust for, any such organization, not used exclusively for carrying out one or more of such purposes but leased, rented or otherwise used for other purposes, shall not be exempt.

If a portion only of any lot or building belonging to, or held in trust for, any such organization is used exclusively for carrying out one or more of such purposes, such lot or building shall be so exempt only to the extent of the portion so used and the remaining portion shall be subject to taxation.

Any lot or building or portion of a lot or building belonging to, or held in trust for, any such organization, used for carrying out one or more of such purposes shall be exempt only as to the periods of time during which such lot or building or portion of such lot or building is unused or used exclusively for carrying out one or more of such purposes.

Sec.

3.

Section 12-89 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2019, and applicable to assessment years commencing on or after October 1, 2019):

The board of assessors of each town, consolidated town and city or consolidated town and borough shall inspect the statements filed with it and required by sections 12-81, as amended by this act, and 12-87 from scientific, educational, literary, historical, charitable, agricultural and cemetery organizations, shall determine what part, if any, of the property claimed to be exempt by the organization shall be in fact exempt and shall place a valuation upon all such property, if any, as is found to be taxable, provided any property acquired by any tax- exempt organization after the first day of October shall first become exempt on the assessment date next succeeding the date of acquisition.

Whenever the board of assessors determines that all or part of the property claimed to be exempt under subdivision (7) of section 12-81, as amended by this act, by an organization is taxable, the board shall LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00928-3 of 4 R02-SB.docx } Substitute Bill No.

928 state upon its records the reason for its decision.

Any organization filing a tax-exempt statement, aggrieved at the action of the assessor or board of assessors, may appeal, within the time prescribed by law for such appeals, to the board of assessment appeals.

Any such organization claiming to be aggrieved by the action of the board of assessment appeals may, within two months from the time of such action, make application in the nature of an appeal therefrom to the superior court for the judicial district in which such property is situated.

Section 1 JanuaryOctober 1, 20202019, 12-119and Statement12-81(7) ofapplicable Purpose:to assessment years commencing on or after October 1, 2019 Sec.

To2 permitOctober the1, recovery2019, ofand reasonable12-88 attorney'sapplicable feesto inassessment successfulyears actionscommencing foron wrongfulor propertyafter taxOctober assessment.1, 2019 Sec.

[Proposed3 deletionsOctober are1, enclosed2019, inand brackets.12-89 applicable to assessment years commencing on or after October 1, 2019 PD Joint Favorable Subst.

ProposedFIN additionsJoint areFavorable indicatedLCO by{\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00928- underline,4 except that when the entire text of a4 billR02-SB.docx or} resolution or a section of a bill or resolution is new, it is not underlined.] LCO No.

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