Sec. 12-19a. Grants in lieu of taxes on state-owned real property, reservation land held in trust by the state for an Indian tribe, municipally owned airports and land taken into trust by the federal
Sec. 12-19a. Grants in lieu of taxes on state-owned real property, reservation
land held in trust by the state for an Indian tribe, municipally owned airports
and land taken into trust by the federal government for the Mashantucket Pequot
Tribal Nation. (a) On or before January first, annually, the Secretary of the Office of
Policy and Management shall determine the amount due, as a state grant in lieu of taxes,
to each town in this state wherein state-owned real property, reservation land held in
trust by the state for an Indian tribe or a municipally owned airport, except that which
was acquired and used for highways and bridges, but not excepting property acquired
and used for highway administration or maintenance purposes, is located. The grant
payable to any town under the provisions of this section in the state fiscal year commencing July 1, 1999, and each fiscal year thereafter, shall be equal to the total of (1) (A)
one hundred per cent of the property taxes which would have been paid with respect to
any facility designated by the Commissioner of Correction, on or before August first
of each year, to be a correctional facility administered under the auspices of the Department of Correction or a juvenile detention center under direction of the Department of
Children and Families that was used for incarcerative purposes during the preceding
fiscal year. If a list containing the name and location of such designated facilities and
information concerning their use for purposes of incarceration during the preceding
fiscal year is not available from the Secretary of the State on the first day of August of
any year, said commissioner shall, on said first day of August, certify to the Secretary
of the Office of Policy and Management a list containing such information, (B) one
hundred per cent of the property taxes which would have been paid with respect to that
portion of the John Dempsey Hospital located at The University of Connecticut Health
Center in Farmington that is used as a permanent medical ward for prisoners under the
custody of the Department of Correction. Nothing in this section shall be construed as
designating any portion of The University of Connecticut Health Center John Dempsey
Hospital as a correctional facility, and (C) in the state fiscal year commencing July 1,
2001, and each fiscal year thereafter, one hundred per cent of the property taxes which
would have been paid on any land designated within the 1983 Settlement boundary and
taken into trust by the federal government for the Mashantucket Pequot Tribal Nation
on or after June 8, 1999, (2) subject to the provisions of subsection (c) of this section,
sixty-five per cent of the property taxes which would have been paid with respect to the
buildings and grounds comprising Connecticut Valley Hospital in Middletown. Such
grant shall commence with the fiscal year beginning July 1, 2000, and continuing each
year thereafter, (3) notwithstanding the provisions of subsections (b) and (c) of this
section, with respect to any town in which more than fifty per cent of the property is
state-owned real property, one hundred per cent of the property taxes which would have
been paid with respect to such state-owned property. Such grant shall commence with
the fiscal year beginning July 1, 1997, and continuing each year thereafter, (4) subject
to the provisions of subsection (c) of this section, forty-five per cent of the property
taxes which would have been paid with respect to all other state-owned real property,
and (5) forty-five per cent of the property taxes which would have been paid with respect
to all municipally owned airports; except for the exemption applicable to such property,
on the assessment list in such town for the assessment date two years prior to the commencement of the state fiscal year in which such grant is payable. The grant provided
pursuant to this section for any municipally owned airport shall be paid to any municipality in which the airport is located, except that the grant applicable to Sikorsky Airport
shall be paid half to the town of Stratford and half to the city of Bridgeport. For the
fiscal year ending June 30, 2000, and in each fiscal year thereafter, the amount of the
grant payable to each municipality in accordance with this section shall be reduced
proportionately in the event that the total of such grants in such year exceeds the amount
appropriated for the purposes of this section with respect to such year.
(b) As used in this section "total tax levied" means the total real property tax levy
in such town for the fiscal year preceding the fiscal year in which a grant in lieu of
taxes under this section is made, reduced by the Secretary of the Office of Policy and
Management in an amount equal to all reimbursements certified as payable to such town
by the secretary for real property exemptions and credits on the taxable grand list or
rate bill of such town for the assessment year that corresponds to that for which the
assessed valuation of the state-owned land and buildings has been provided. For purposes of this section and section 12-19b, any real property which is owned by the John
Dempsey Hospital Finance Corporation established pursuant to the provisions of sections 10a-250 to 10a-263, inclusive, or by one or more subsidiary corporations established pursuant to subdivision (13) of section 10a-254 and which is free from taxation
pursuant to the provisions of subdivision (13) of section 10a-259 shall be deemed to be
state-owned real property. As used in this section and section 12-19b, "town" includes
borough.
(c) In the fiscal year ending June 30, 1991, and in each fiscal year thereafter, the
portion of the grant payable to any town as determined in accordance with subdivisions
(2) and (4) of subsection (a) of this section, shall not be greater than the following
percentage of total tax levied by such town on real property in the preceding calendar
year as follows: (1) In the fiscal year ending June 30, 1991, ten per cent, (2) in the fiscal
year ending June 30, 1992, twelve per cent, (3) in the fiscal year ending June 30, 1993,
fourteen per cent, (4) in the fiscal year ending June 30, 1994, twenty-seven per cent, (5)
in the fiscal year ending June 30, 1995, thirty-five per cent, (6) in the fiscal year ending
June 30, 1996, forty-two per cent, (7) in the fiscal year ending June 30, 1997, forty-nine
per cent, (8) in the fiscal year ending June 30, 1998, fifty-six per cent, (9) in the fiscal
year ending June 30, 1999, sixty-three per cent, (10) in the fiscal year ending June 30,
2000, seventy per cent, (11) in the fiscal year ending June 30, 2001, seventy-seven per
cent, (12) in the fiscal year ending June 30, 2002, eighty-four per cent, (13) in the fiscal
year ending June 30, 2003, ninety-two per cent, and (14) in the fiscal year ending June
30, 2004, and in each fiscal year thereafter, one hundred per cent.
(d) In the fiscal year commencing July 1, 1999, and in each fiscal year thereafter,
the Commissioner of Transportation shall pay from the Bradley International Airport
Enterprise Fund to the State Comptroller, on or before September fifteenth, the portion
of the state grant in lieu of taxes payable under the provisions of this section at the rate
of twenty per cent of the property taxes which would have been paid to the towns of
East Granby, Suffield, Windsor and Windsor Locks for real property located at Bradley
International Airport. Such payment shall be credited to the appropriation from the
General Fund for reimbursements to towns for loss of taxes on state property.
(e) Notwithstanding the provisions of this section in effect prior to January 1, 1997,
any grant in lieu of taxes on state-owned real property made to any town in excess of
seven and one-half per cent of the total tax levied on real property by such town is
validated.
(1969, P.A. 766, S. 1; 1971, P.A. 737; P.A. 77-498, S. 1, 2; 77-614, S. 139, 610; P.A. 78-256, S. 1, 4; P.A. 79-610, S.
2, 47; P.A. 87-399, S. 1, 4; 87-458, S. 17; P.A. 88-292, S. 1, 4; P.A. 89-368, S. 24; P.A. 90-148, S. 32, 34; 90-230, S. 16,
101; June Sp. Sess. P.A. 91-14, S. 3, 30; P.A. 92-224, S. 1, 2; May Sp. Sess. P.A. 92-15, S. 1, 2, 20; P.A. 93-388, S. 8, 12;
P.A. 95-257, S. 9, 58; 95-307, S. 3, 14; P.A. 97-261, S. 1, 3; 97-282, S. 2, 6; June 18 Sp. Sess. P.A. 97-11, S. 27, 65; P.A.
98-217, S. 1, 4; June Sp. Sess. P.A. 99-1, S. 11, 51; P.A. 00-112, S. 3, 5; 00-192, S. 22, 102; June Sp. Sess. P.A. 00-1, S.
12, 46.)
History: 1971 act included property acquired and used for highway administration or maintenance purposes in state-owned property for consideration in determining grants to towns; P.A. 77-498 deleted provision limiting grants to maximum
of $600,000; P.A. 77-614 substituted commissioner of revenue services for tax commissioner, effective January 1, 1979;
P.A. 78-256 deleted provision for pro rata reductions in grants so as not to exceed appropriations; P.A. 79-610 substituted
secretary of the office of policy and management for commissioner of revenue services, effective July 1, 1980; P.A. 87-399 repealed the grant formula based on the ratio of the total tax levied by each town on real property to the total tax levied
on real property by all towns in the state, multiplied by assessed value of state-owned real property in the town, multiplied
by the town's mill rate, multiplied by ten, and substituted a grant to towns equal to 20% of property taxes which would
have been paid with respect to state-owned real property on the assessment list in such town, except for the exemption
applicable to such property; changed date for determination of amount due each town from August first to September first;
increased minimum grant from $2,000 to $4,000; changed base year for hold harmless provision from calendar year 1968
to fiscal year ending June 30, 1987; eliminated special hold harmless provision for Mansfield; limited maximum amount
of grant to any town to 7.5% of total tax levied by such town on real property in the preceding calendar year, and added
definition of total tax levied, effective June 26, 1987, and applicable to grants payable in fiscal year commencing July 1,
1987, and thereafter; P.A. 87-458 provided that certain property owned by the John Dempsey Finance Corporation be
deemed state-owned real property; P.A. 88-292 changed the annual date by which secretary of the office of policy and
management shall determine the amount of grant to each town from September first to January first next following, increased
the grant with respect to the amount related to any correctional institution from 20% of property taxes that would have
been paid without the exemption to 100% of such taxes and amended the minimum grant provision under Subsec. (b) to
provide for payment of not less than $4,000, irrespective of the value of the property; P.A. 89-368 amended Subsec. (a)
to authorize grants for reservation land held in trust by the state for Indians; P.A. 90-148 added Subsec. (c) providing
higher maximum amounts of grant for towns to which the maximum 7.5% of total tax levied on real property in the
preceding calendar year is applicable, with said maximum percentage of total tax levied increasing by increments from
7.5% to a maximum of 15% in fiscal years ending in 1991 to 1994, inclusive; P.A. 90-230 corrected an omission from
public act 88-292 in Subsec. (b); June Sp. Sess. P.A. 91-14 amended Subsec. (b) to eliminate hold-harmless provisions
which had assured minimum grant of $4,000; P.A. 92-224 effective July 1, 1993, amended Subsec. (a) to remove the
requirement that a correction facility be used for at least six months to qualify for increased funding and amended Subsec.
(c) to state that the Subsec. applies only to the portion of the grant payable under Subsec. (a)(2) and Subsec. (a) to provide
that such change would be applicable to the state fiscal year commencing July 1, 1992; May Sp. Sess. P.A. 92-15 amended
Subsec. (a) to provide for proportionate reduction of grant for fiscal year ending June 30, 1993, if amount payable exceeds
amount appropriated, and added Subsec. (d) re payment from Bradley enterprise fund, effective July 1, 1992, to June 30,
1993; and, effective July 1, 1993, further amended Subsec. (a) to make technical change in reference to state fiscal year;
P.A. 93-388 amended Subsec. (c) to increase maximum percentage of total tax levied by increments from 15% to 100%
commencing with fiscal year ending June 30, 1994, and ending with fiscal year ending June 30, 2004, and each fiscal year
thereafter, effective July 1, 1993; P.A. 95-257 inserted new Subsec. (a)(2) re Connecticut Valley Hospital, renumbering
former Subdiv. (2) as (3), effective July 1, 1995; P.A. 95-307 amended Subdiv. (b) to revise the definition of "total tax
levied" to eliminate reduction of exemptions and to substitute reduction in the amount of reimbursements, effective July
6, 1995; P.A. 97-261 amended Subsec. (a) to include municipally owned airports and to provide for payment of grants,
effective July 1, 1997; P.A. 97-282 clarified that grant limits in Subsec. (c) are to be used with respect to program rather
than the percentage cited in Subsec. (b), redefined "total tax levied" in Subsec. (b), clarified language in Subsec. (d) re
Bradley International Airport and added new Subsec. (e) to validate grants in excess of 7.5% of a town's real property
levy, effective June 26, 1997; June 18 Sp. Sess. P.A. 97-11 added new Subsec. (a)(3) re towns in which more than 50%
of property is state-owned real property and redesignated existing Subdiv. (3) as Subdiv. (4), effective July 1, 1997; P.A.
98-217 amended Subsec. (a) to delete reference to Sec. 1-1(w), to require an annual list of such facilities and to clarify
that the portion of John Dempsey Hospital used for prisoners is eligible under the section, effective July 1, 1998; June Sp.
Sess. P.A. 99-1 amended Subsec. (a) to provide a grant in the fiscal year commencing July 1, 2001, and each fiscal year
thereafter of 100% of the taxes which would have been paid on land designated within the 1983 Settlement boundary and
taken into trust by the federal government for the Mashantucket Tribal Nation on or after June 8, 1999, to increase the
grant payable with respect to certain state-owned real property and all municipally owned airports from 20% to 45% of
the property taxes which would have been paid with respect to such property and airports, except for the exemption
applicable to such property, and to provide that the proportionate reduction of grants in the event the total of such grants
exceeds the appropriation for such purpose shall be not only for the fiscal year ending June 30, 1993, but for the fiscal year
ending June 30, 2000, and each fiscal year thereafter, effective July 1, 1999, and amended Subsec. (d) to provide that the
payment from the Enterprise Fund shall be at the rate of 20% of the property taxes which would have been paid to certain
towns for real property located at Bradley Airport, effective July 1, 1999; P.A. 00-112 amended Subsec. (a) to make a
technical change, effective May 26, 2000; P.A. 00-192 amended Subsec. (a) to make a technical change and increase grant
re Connecticut Valley Hospital from 40% to 65% commencing with the fiscal year beginning July 1, 2000, effective May
26, 2000; June Sp. Sess. P.A. 00-1 amended Subsec. (b) to include borough within definition of town, effective June 21,
2000, and applicable to grants in lieu of taxes otherwise due for assessment years commencing on and after October 1, 2000.
See Sec. 12-1c re transfer of certain functions, powers and duties under this chapter to the Secretary of the Office of
Policy and Management.