Bill Text: CT HB05332 | 2014 | General Assembly | Introduced

Connecticut House Bill 5332 (Prior Session Legislation)

Introduced

Bill Title: An Act Concerning The Taxation Of Certain Public Golf Courses.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2014-02-28 - Public Hearing 03/07 [HB05332 Detail]

Download: Connecticut-2014-HB05332-Introduced.html


General Assembly		*Raised Bill No. 5332*
*February Session, 2014*		LCO No. 1695
		01695_______PD_
Referred to Committee on PLANNING AND DEVELOPMENT
Introduced by:
(PD)

AN ACT CONCERNING THE TAXATION OF CERTAIN PUBLIC GOLF COURSES.

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

Section 1. (NEW) (Effective October 1, 2014, and applicable to assessment years commencing on and after said date) (a) For purposes of this section, "public golf course land" means any golf course consisting of at least twenty-five acres of land that is open for use by the public for golfing, derives at least fifty per cent of its annual revenues from daily fees or group outings and consists of not less than nine golf holes.

(b) Any municipality may, by ordinance, adopt a new assessment classification for public golf course land. Any such ordinance shall provide for a procedure by which an owner may file a written application to the assessor for such classification.

(c) Public golf course land that qualifies for open space classification pursuant to section 12-107e of the general statutes or that is classified as public golf course land pursuant to subsection (b) of this section shall be valued as open space land without regard to golf course improvements such as greens and tees. Buildings and parking lots that are associated with the public golf course shall be valued at fair market value.

(d) The legislative body of a municipality may remove the open space valuation or golf course classification of any public golf course land prior to the adoption of the grand list for the municipality for the following year and shall notify the owner of such public golf course land by certified mail not less than thirty days prior to a meeting at which the legislative body will consider the removal of said valuation. In the event of removal, the owner shall not be liable for the conveyance tax imposed pursuant to section 12-504a of the general statutes, as amended by this act, or be subject to the right of first refusal pursuant to section 7 of this act.

Sec. 2. Section 12-504a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2014):

(a) If at any time there is a change of ownership for any property that is classified as farm land pursuant to section 12-107c, forest land pursuant to section 12-107d, open space land pursuant to section 12-107e, [or] maritime heritage land pursuant to section 12-107g or public golf course land pursuant to section 1 of this act, a revised application shall be filed with the assessor pursuant to said section 12-107c, 12-107d, 12-107e, [or] section 12-107g or section 1 of this act.

(b) Any land [which] that has been classified by the record owner thereof as open space land pursuant to section 12-107e, [or] as maritime heritage land pursuant to section 12-107g or public golf course land pursuant to section 1 of this act, if sold or transferred by [him] such record owner within a period of ten years from the time [he] such record owner first caused such land to be so classified, shall be subject to a conveyance tax applicable to the total sales price of such land, which tax shall be in addition to the tax imposed under sections 12-494 to 12-504, inclusive. Said conveyance tax shall be at the following rate: (1) Ten per cent of said total sales price if sold within the first year following the date of such classification; (2) nine per cent if sold within the second year following the date of such classification; (3) eight per cent if sold within the third year following the date of such classification; (4) seven per cent if sold within the fourth year following the date of such classification; (5) six per cent if sold within the fifth year following the date of such classification; (6) five per cent if sold within the sixth year following the date of such classification; (7) four per cent if sold within the seventh year following the date of such classification; (8) three per cent if sold within the eighth year following the date of such classification; (9) two per cent if sold within the ninth year following the date of such classification; and (10) one per cent if sold within the tenth year following the date of such classification. With regard to public golf course land, following the end of the tenth year after the date of such classification, a conveyance tax of one per cent shall be imposed on any record owner of such land at the time the land ceases to be classified as public golf course land pursuant to section 1 of this act. No conveyance tax shall be imposed on such record owner by the provisions of sections 12-504a to 12-504f, inclusive, as amended by this act, following the end of the tenth year after the date of such classification by the record owner or person acquiring title to such land or causing such land to be so classified.

(c) Any land [which] that has been classified by the record owner thereof as farm land pursuant to section 12-107c or as forest land pursuant to section 12-107d, if sold or transferred by [him] such record owner within a period of ten years from the time [he] such record owner acquired title to such land or from the time [he] such record owner first caused such land to be so classified, whichever is earlier, shall be subject to a conveyance tax applicable to the total sales price of such land, which tax shall be in addition to the tax imposed under sections 12-494 to 12-504, inclusive. Said conveyance tax shall be at the following rate: (1) Ten per cent of said total sales price if sold within the first year of ownership by such record owner; (2) nine per cent if sold within the second year of ownership by such record owner; (3) eight per cent if sold within the third year of ownership by such record owner; (4) seven per cent if sold within the fourth year of ownership by such record owner; (5) six per cent if sold within the fifth year of ownership by such record owner; (6) five per cent if sold within the sixth year of ownership by such record owner; (7) four per cent if sold within the seventh year of ownership by such record owner; (8) three per cent if sold within the eighth year of ownership by such record owner; (9) two per cent if sold within the ninth year of ownership by such record owner; and (10) one per cent if sold within the tenth year of ownership by such record owner. No conveyance tax shall be imposed by the provisions of sections 12-504a to 12-504f, inclusive, as amended by this act, following the end of the tenth year of ownership by the record owner or person acquiring title to such land or causing such land to be so classified.

Sec. 3. Section 12-504c of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2014):

The provisions of section 12-504a, as amended by this act, shall not be applicable to the following: (1) Transfers of land resulting from eminent domain proceedings; (2) mortgage deeds; (3) deeds to or by the United States of America, state of Connecticut or any political subdivision or agency thereof; (4) strawman deeds and deeds which correct, modify, supplement or confirm a deed previously recorded; (5) deeds between husband and wife and parent and child when no consideration is received, except that a subsequent nonexempt transfer by the grantee in such cases shall be subject to the provisions of said section 12-504a as it would be if the grantor were making such nonexempt transfer; (6) tax deeds; (7) deeds of foreclosure; (8) deeds of partition; (9) deeds made pursuant to a merger of a corporation; (10) deeds made by a subsidiary corporation to its parent corporation for no consideration other than the cancellation or surrender of the capital stock of such subsidiary; (11) property transferred as a result of death when no consideration is received and in such transfer the date of acquisition or classification of the land for purposes of sections 12-504a to 12-504f, inclusive, as amended by this act, or section 12-107g, whichever is earlier, shall be the date of acquisition or classification by the decedent; (12) deeds to any corporation, trust or other entity, of land to be held in perpetuity for educational, scientific, aesthetic or other equivalent passive uses, provided such corporation, trust or other entity has received a determination from the Internal Revenue Service that contributions to it are deductible under applicable sections of the Internal Revenue Code; (13) land subject to a covenant specifically set forth in the deed transferring title to such land, which covenant is enforceable by the town in which such land is located, to refrain from selling, transferring or developing such land in a manner inconsistent with its classification as farm land pursuant to section 12-107c, forest land pursuant to section 12-107d, open space land pursuant to section 12-107e, [or] maritime heritage land pursuant to section 12-107g or public golf course land pursuant to section 1 of this act, for a period of not less than eight years from the date of transfer, if such covenant is violated the conveyance tax set forth in this chapter shall be applicable at the rate multiplied by the market value as determined by the assessor which would have been applicable at the date the deed containing the covenant was delivered and, in addition, the town or any taxpayer therein may commence an action to enforce such covenant; (14) land the development rights to which have been sold to the state under chapter 422a; and (15) deeds to or from any limited liability company when the grantors or grantees are the same individuals as the principals or members of the limited liability company. If action is taken under subdivision (13) of this section by a taxpayer, such action shall commence prior to the ninth year following the date of the deed containing such covenant and the town shall be served as a necessary party.

Sec. 4. Section 12-504e of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2014):

Any land [which] that has been classified by the owner as farm land pursuant to section 12-107c, forest land pursuant to section 12-107d, open space land pursuant to section 12-107e, [or] maritime heritage land pursuant to section 12-107g or public golf course land pursuant to section 1 of this act, if changed by [him] such owner, within a period of ten years [of his acquisition of] after the date on which such owner acquires title, to use other than farm land, forest land, open space land, [or] maritime heritage land or public golf course land, shall be subject to said conveyance tax as if there had been an actual conveyance by [him] such owner, as provided in sections 12-504a and 12-504b, as amended by this act, at the time [he] such owner makes such change in use. For the purposes of this section: (1) The value of any such property shall be the fair market value thereof as determined by the assessor in conjunction with the most recent revaluation, and (2) the date used for purposes of determining such tax shall be the date on which the use of such property is changed, or the date on which the assessor becomes aware of a change in use of such property, whichever occurs first.

Sec. 5. Section 12-504f of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2014):

The tax assessor shall file annually with the town clerk, not later than sixty days after the assessment date, [with the town clerk] a certificate for any land [which] that has been classified as farm land pursuant to section 12-107c, as forest land pursuant to section 12-107d, as open space land pursuant to section 12-107e, [or] as maritime heritage land pursuant to section 12-107g or as public golf course land pursuant to section 1 of this act, which certificate shall set forth the date of the initial classification and the obligation to pay the conveyance tax imposed by this chapter. Said certificate shall be recorded in the land records of such town. Any such classification of land shall be deemed personal to the particular owner who requests such classification and shall not run with the land. The town clerk shall notify the tax assessor of the filing in the land records of the sale of any such land. Upon receipt of such notice the tax assessor shall inform the new owner of the tax benefits of classification of such land as farm land, forest land, [or] open space land, maritime heritage land or public golf course land.

Sec. 6. Section 12-504h of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2014):

Any such classification of farm land pursuant to section 12-107c, forest land pursuant to section 12-107d, open space land pursuant to section 12-107e, [or] maritime heritage land pursuant to section 12-107g or public golf course land pursuant to section 1 of this act, shall be deemed personal to the particular owner who requests and receives such classification and shall not run with the land. Any such land [which] that has been classified by a record owner shall remain so classified without the filing of any new application subsequent to such classification, notwithstanding the provisions of sections 12-107c, 12-107d, 12-107e, [and] section 12-107g and section 1 of this act, until either of the following shall occur: (1) The use of such land is changed to a use other than that described in the application for the existing classification by said record owner, or (2) such land is sold or transferred by said record owner. Upon the sale or transfer of any such property, the classification of such land as farm land pursuant to section 12-107c, forest land pursuant to section 12-107d, open space land pursuant to section 12-107e, [or] maritime heritage land pursuant to section 12-107g or public golf course land pursuant to section 1 of this act, shall cease as of the date of sale or transfer. In the event that a change in use of any such property occurs, the provisions of section 12-504e, as amended by this act, shall apply in terms of determining the date of change and the classification of such land as farm land pursuant to section 12-107c, forest land pursuant to section 12-107d, open space land pursuant to section 12-107e, [or] maritime heritage land pursuant to section 12-107g or public golf course land pursuant to section 1 of this act, shall cease as of such date.

Sec. 7. (NEW) (Effective July 1, 2014) Any owner of public golf course land classified as such pursuant to section 1 of this act or classified as open space pursuant to section 12-107e of the general statutes who intends to sell such land shall give written notice by first class mail or personal delivery to the chief elected official of the municipality in which the classified land is located. If the sale of the land will entail the discontinuance of the use of such land as public golf course land for golf or other recreational purposes, the notice shall include a statement advising the chief elected official of the intended sale and sale price and shall be mailed or delivered at least one hundred twenty days prior to the sale. Not later than ninety days following the date of receipt of such notice, the municipality shall have the right to enter a binding commitment to purchase the property upon the same terms and conditions set forth in the notice, except the purchase price shall be ninety per cent of the purchase price contained in the notice.


This act shall take effect as follows and shall amend the following sections:
Section 1	October 1, 2014, and applicable to assessment years commencing on and after said date	New section
Sec. 2	October 1, 2014	12-504a
Sec. 3	October 1, 2014	12-504c
Sec. 4	October 1, 2014	12-504e
Sec. 5	October 1, 2014	12-504f
Sec. 6	October 1, 2014	12-504h
Sec. 7	July 1, 2014	New section

Statement of Purpose:

To authorize municipalities to (1) tax public golf courses in the same manner in which they tax open space, or (2) establish a new tax classification for such golf courses.

[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.]