General Assembly Raised Bill No.

399
February Session, 2012 LCO No. 2102
*02102_______FIN*
Referred to Committee on Finance, Revenue and Bonding

Introduced by:
(FIN)

AN ACT CONCERNING ANNUAL ADJUSTMENTS TO ASSESSMENT

RATES ADOPTED FOR APARTMENT AND RESIDENTIAL
PROPERTIES.

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

Assembly convened:

1 Section 1. Section 12-62r of the 2012 supplement to the general

2 statutes is repealed and the following is substituted in lieu thereof
3 (Effective from passage):

4 (a) For the purposes of this section:

5 (1) "Apartment property" means a building containing four or more

6 dwelling units used for human habitation, the parcel of land on which
7 such building is situated, and any accessory buildings or other
8 improvements located on such parcel;

9 (2) "Residential property" means a building containing three or

10 fewer dwelling units used for human habitation, the parcel of land on
11 which such building is situated, and any accessory buildings or other
12 improvements located on such parcel, and includes common interest
13 communities, as defined in section 47-202 and residential
14 condominiums, as defined in section 47-68a;

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15 (3) "Base year" means the assessment year commencing October 1,
16 2010; and

17 (4) "Adjusted tax levy" means the total amount of taxes raised by
18 taxation in a fiscal year by a municipality as provided in the most
19 recent budget adopted by the legislative body and signed by the chief
20 elected official of such municipality.

21 (b) Notwithstanding any provision of the general statutes or any

22 special act, municipal charter or any home rule ordinance, any
23 municipality in which the provisions of section 12-62n were effective
24 for the [assessment year commencing October 1, 2010] base year, shall
25 make annual adjustments to the assessment rate charged to apartment
26 and residential property in accordance with the provisions of this
27 section, but in no event shall the assessment rate for any class of
28 property be in excess of seventy per cent.

29 (c) For the assessment year commencing October 1, 2011, in any

30 municipality that adopts the property tax system under this section,
31 apartment property shall be assessed at a rate of fifty per cent. [For
32 assessment years commencing on and after October 1, 2012, the
33 assessor shall determine a rate of assessment for apartment property
34 that will have the effect of phasing in proportionate increases in the
35 rate so that, by the assessment year commencing October 1, 2015, the
36 assessment rate for apartment property shall be seventy per cent.] For
37 the assessment year commencing October 1, 2012, apartment property
38 shall be assessed at a rate of fifty-five per cent. For the assessment year
39 commencing October 1, 2013, apartment property shall be assessed at a
40 rate of sixty per cent. For the assessment year commencing October 1,
41 2014, apartment property shall be assessed at a rate of sixty-five per
42 cent. For assessment years commencing on and after October 1, 2015,
43 apartment property shall be assessed at a rate of seventy per cent.

44 (d) In any municipality that adopts the property tax system under
45 this section, for the assessment year commencing October 1, 2011, and
46 only for said assessment year, the assessor shall determine a rate of

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 Raised Bill No. 399
47 assessment for residential property that will have the effect of
48 increasing the average property tax for residential property as a result
49 of revaluation by three and one-half per cent over the property tax for
50 such property class in the base year, but in no event shall the
51 assessment rate be less than twenty-three per cent. For assessment
52 years commencing on and after October 1, [2011] 2012, the assessor
53 shall then calculate an additional adjustment to the rate of assessment
54 for residential property in accordance with subsection (e) of this
55 section.

56 (e) [Not later than January thirty-first or the completion of the grand
57 list, whichever is later] Prior to the completion of the 2012 grand list,
58 and each assessment year thereafter, the assessor shall [annually]
59 calculate the difference in the adjusted tax levy by such municipality in
60 the current fiscal year and the prior fiscal year by comparing the
61 adjusted tax levy used to calculate the mill rate in the current fiscal
62 year to the adjusted tax levy used to calculate the mill rate for the
63 immediately preceding fiscal year. [The assessor shall then adjust the
64 adjusted tax levy for the current fiscal year in accordance with any
65 change in the consumer price index for all urban consumers in the
66 northeast region in the preceding fiscal year. If, after such adjustment,
67 (1) the adjusted tax levy in the current fiscal year exceeds the adjusted
68 tax levy in the prior fiscal year by more than one hundred per cent of
69 the rate of inflation, as determined in accordance with such consumer
70 price index, the assessor, in his or her calculation of the assessment
71 ratios for the next grand list, shall increase the rate of assessment for
72 residential properties from the prior grand list year by five per cent; (2)
73 the adjusted tax levy in the current fiscal year exceeds the adjusted tax
74 levy in the prior fiscal year by more than fifty per cent, but not more
75 than one hundred per cent, of such rate of inflation, the assessor shall
76 increase such rate of assessment by three and one-half per cent; (3) the
77 adjusted tax levy in the current fiscal year exceeds the adjusted tax
78 levy in the prior fiscal year by not more than fifty per cent of such rate
79 of inflation, the assessor shall increase such rate of assessment by two
80 and one-half per cent; (4) the adjusted tax levy in the current fiscal year

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81 is equal to the adjusted tax levy in the prior fiscal year, or is less than
82 one-half per cent less than the adjusted tax levy in the prior fiscal year,
83 the assessor shall increase such rate of assessment by one and one-half
84 per cent; and (5) the adjusted tax levy in the current fiscal year is less
85 than the adjusted tax levy in the prior fiscal year by at least one-half
86 per cent, the assessor shall make no change in such rate of assessment.]
87 If, after calculating such difference, (1) the difference in the adjusted
88 tax levy by such municipality in the current fiscal year is greater than
89 one-half per cent less than the adjusted tax levy in the preceding fiscal
90 year, the assessor, in his or her calculation of the residential assessment
91 ratios for the next grand list, shall make no change in the rate of
92 assessment for residential properties from the preceding assessment
93 year; (2) the adjusted tax levy by such municipality in the current fiscal
94 year is equal to the adjusted tax levy in the preceding fiscal year, or
95 less than one-half per cent less than the adjusted tax levy in the
96 preceding fiscal year, then the assessor, in his or her calculation of the
97 residential assessment ratios for the next grand list, shall increase the
98 rate of assessment for residential properties from the preceding
99 assessment year by one and one-half percentage points; (3) the
100 difference in the adjusted tax levy by such municipality between the
101 current fiscal year and the preceding fiscal year is greater than zero
102 dollars, but less than or equal to two million dollars, then the assessor,
103 in his or her calculation of the assessment ratios for the next grand list,
104 shall increase the rate of assessment for residential properties from the
105 preceding assessment year by two percentage points; (4) the difference
106 in the adjusted tax levy by such municipality between the current fiscal
107 year and the preceding fiscal year is greater than two million dollars,
108 but less than or equal to four million dollars, then the assessor, in his
109 or her calculation of the assessment ratios for the next grand list, shall
110 increase the rate of assessment for residential properties from the prior
111 assessment year by two and one-half percentage points; (5) the
112 difference in the adjusted tax levy by such municipality between the
113 current fiscal year and the preceding fiscal year is greater than four
114 million dollars, but less than or equal to six million dollars, then the

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115 assessor, in his or her calculation of the assessment ratios for the next
116 grand list, shall increase the rate of assessment for residential
117 properties from the prior assessment year by three and one-half
118 percentage points; (6) the difference in the adjusted tax levy by such
119 municipality between the current fiscal year and the preceding fiscal
120 year is greater than six million dollars, but less than or equal to eight
121 million dollars, then the assessor, in his or her calculation of the
122 assessment ratios for the next grand list, shall increase the rate of
123 assessment for residential properties from the preceding assessment
124 year by four and one-half percentage points; and (7) the difference in
125 the adjusted tax levy by such municipality between the current fiscal
126 year and the preceding fiscal year is greater than eight million dollars,
127 then the assessor, in his or her calculation of the assessment ratios for
128 the next grand list, shall increase the rate of assessment for residential
129 properties from the preceding assessment year by five percentage
130 points. In each year, the established rate of assessment for residential
131 properties becomes the base residential assessment ratio for calculation
132 of the following year's residential assessment ratio.

133 (f) Not later than June fifteenth in any year in which the [adjusted
134 tax levy in the current fiscal year increases by] legislative body of the
135 municipality adopts a budget for the following fiscal year that
136 establishes a projected increase in the adjusted tax levy of more than
137 two and six-tenths per cent over the adjusted tax levy in the [prior]
138 current fiscal year, one per cent of the total number of electors of such
139 municipality may petition in writing for a referendum on the budget
140 establishing such increase. Any such referendum shall be held not
141 more than ten days after receipt of such petition by the town clerk and
142 shall be conducted in accordance with the provisions of chapter 90.
143 Such budget shall not become effective unless a majority of the electors
144 voting in such referendum vote in favor thereof. Only one referendum
145 may be held, and, if the vote is against the budget, such municipality
146 shall so adjust the budget as to limit any increase to be equal to or less
147 than two and six-tenths per cent.

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 Raised Bill No. 399

This act shall take effect as follows and shall amend the following
sections:

Section 1 from passage 12-62r

Statement of Purpose:
To adjust the phase-in of increases in the property tax assessments for
apartment and residential property in certain municipalities.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
not underlined.]

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