Bill Text: CT HB05180 | 2018 | General Assembly | Introduced

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Bill Title: An Act Concerning The Appraisal Of Certain Rental Income-producing Real Property.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2018-02-22 - Public Hearing 02/26 [HB05180 Detail]

Download: Connecticut-2018-HB05180-Introduced.html

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General Assembly		Raised Bill No. 5180
February Session, 2018		LCO No. 1287
		*01287_______PD_*
Referred to Committee on PLANNING AND DEVELOPMENT
Introduced by:
(PD)

AN ACT CONCERNING THE APPRAISAL OF CERTAIN RENTAL INCOME-PRODUCING REAL PROPERTY.

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

Section 1. Section 12-63b of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2018):

(a) The assessor or board of assessors in any town, at any time, when determining the present true and actual value of real property as provided in section 12-63, which property is used primarily for the purpose of producing rental income, exclusive of such property used solely for residential purposes, containing not more than six dwelling units and in which the owner resides, shall determine such value on the basis of an appraisal which shall include to the extent applicable with respect to such property, consideration of each of the following methods of appraisal: (1) Replacement cost less depreciation, plus the market value of the land, [(2) capitalization of net income based on market rent for similar property,] and [(3)] (2) a sales comparison approach based on current bona fide sales of comparable property. The provisions of this section shall not be applicable with respect to any housing assisted by the federal or state government except any such housing for which the federal assistance directly related to rent for each unit in such housing is no less than the difference between the fair market rent for each such unit in the applicable area and the amount of rent payable by the tenant in each such unit, as determined under the federal program providing for such assistance.

(b) [For purposes of subdivision (2) of subsection (a) of this section and, generally, in] In its use as a factor in any appraisal with respect to real property used primarily for the purpose of producing rental income, the term "market rent" means the rental income that such property would most probably command on the open market as indicated by present rentals being paid for comparable space. In determining market rent the assessor shall consider the actual rental income applicable with respect to such real property under the terms of an existing contract of lease at the time of such determination.

This act shall take effect as follows and shall amend the following sections:
Section 1	July 1, 2018	12-63b

Statement of Purpose:

To remove the requirement that an assessor or board of assessors consider the capitalization of net income based on market rent for a similar property when appraising certain real property used primarily for the purpose of producing rental income in order to determine the present true and actual value of such property.

[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.]