Bill Text: CT HB05399 | 2016 | General Assembly | Introduced
Bill Title: An Act Concerning State Reimbursement For Tax Abatements And Payments In Lieu Of Taxes.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2016-04-08 - Tabled for the Calendar, House [HB05399 Detail]
Download: Connecticut-2016-HB05399-Introduced.html
General Assembly |
Raised Bill No. 5399 | ||
February Session, 2016 |
LCO No. 1924 | ||
*01924_______HSG* | |||
Referred to Committee on HOUSING |
|||
Introduced by: |
|||
(HSG) |
|||
AN ACT CONCERNING STATE REIMBURSEMENT FOR TAX ABATEMENTS AND PAYMENTS IN LIEU OF TAXES.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Subsection (a) of section 8-216 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2016):
(a) The state, acting by and in the discretion of the Commissioner of Housing, may enter into a contract with a municipality for state financial assistance for housing, or any part thereof, solely for low or moderate-income persons or families, or for housing or any part thereof, on property classified by the municipality pursuant to section 8-215, for use for housing solely for low or moderate-income persons or families, in the form of reimbursement for tax abatements under said section, provided the construction or rehabilitation of such housing shall have been commenced after July 1, 1967, or, in the case of apartment buildings containing three or more stories, under construction on July 1, 1967. Such contract shall provide for state financial assistance in the form of a state grant-in-aid to the municipality not to exceed the amount of taxes abated by the municipality pursuant to section 8-215, provided no payment shall be made to any municipality under any contract entered into on or after October 1, 1973, unless the assessment on such housing or part thereof is determined as provided in section 8-216a except when such contract is a modification, amendment, or replacement of a contract already in existence on or before October 1, 1973. In such contract, the commissioner may require assurances that the amount of tax abatement will be used for the purposes stated in section 8-215, and that the commissioner shall have the right of inspection to determine that such purposes are being achieved. With respect to housing for which tax abatement has been provided pursuant to [said] section 8-215, such grant-in-aid shall be paid to the municipality each year, in an amount not to exceed the tax abatement for such year, as long as the housing continues to fulfill the purposes stated in said section. No tax abatement provided pursuant to section 8-215 may be terminated by a municipality if the state fails to pay such grant-in-aid, unless the reason for the failure to pay is that the housing no longer fulfills the purposes stated in section 8-215.
Sec. 2. Section 8-71 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2016):
In lieu of real property taxes, special benefit assessments and sewerage system use charges otherwise payable to such municipality, except in such municipalities as, by special act or charter, on May 20, 1957, had a sewer use charge, an authority shall pay each year to the municipality in which any of its moderate rental housing projects are located a sum to be determined by the municipality, with the approval of the Commissioner of Housing, not in excess of twelve and one-half per cent of the shelter rent per annum for each occupied dwelling unit in any such housing project; except that the amount of such payment shall not be so limited in any case where funds are made available for such payment by an agency or department of the United States government. [, but no] No payment shall exceed the amount of taxes which would be paid on the property were the property not exempt from taxation and no payment shall be due from the authority for any year in which the state did not make payment to the municipality for the sum contemplated in this section.
This act shall take effect as follows and shall amend the following sections: | ||
Section 1 |
October 1, 2016 |
8-216(a) |
Sec. 2 |
October 1, 2016 |
8-71 |
Statement of Purpose:
To clarify the law related to tax abatements and payments by authorities.
[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.]