Sec. 12-59. Declaration of corporation property. Stockholders exempt.
Sec. 12-59. Declaration of corporation property. Stockholders exempt. The
whole property in this state of each corporation organized under the law of this state,
whose stock is not liable to taxation, and which is not required to pay a direct tax to this
state in lieu of other taxes, and whose property is not expressly exempt from taxation,
and the whole property in this state of each corporation organized under the law of any
other state or country, including each foreign municipal electric utility, shall be set in
the grand list and shall be liable to taxation in the same manner as the property of
individuals. The stockholders of any corporation, the whole property of which is assessed and taxed in its name, shall be exempt from assessment or taxation for their stock
therein. As used in this section, "foreign municipal electric utility" means a town, city,
borough or any municipal corporation, department or agency thereof, of a state other
than this state, whether or not separately incorporated, which is authorized under the
laws of the state in which it is organized or resident to generate and transmit electric
energy and which holds property in this state.
(1949 Rev., S. 1751; P.A. 73-442, S. 1; P.A. 82-458, S. 2, 3; P.A. 99-189, S. 11, 20; P.A. 02-103, S. 43.)
History: P.A. 73-442 included foreign municipal electric utility under provisions of section and defined the term; P.A.
82-458 made changes concerning taxation of personal property of a corporation corresponding to those made in relation
to such property of an individual in amendments to Sec. 12-43, with personal property to be subject to tax in the town in
which it is located on the assessment date if located in such town for three months or more in the year immediately preceding
such assessment date, effective June 8, 1982, and applicable in any town with respect to assessment years commencing
October 1, 1981, and thereafter; P.A. 99-189 deleted obsolete definition of "permanently located" and language re real
estate and clarified reference to grand list, effective June 23, 1999, and applicable to assessment years of municipalities
commencing on or after October 1, 1999; P.A. 02-103 made a technical change.
Formerly bank stock owned by corporation was not taxable. 3 C. 15. Bank stock owned by savings bank held taxable
where latter is located. 20 C. 111. Deposits in savings banks are not stock. Id. The capital stock of a bank embraces all its
property. 31 C. 106. What exempt under former provision, as property necessary to corporation's "appropriate business".
35 C. 7; 40 C. 498. A corporation's principal place of business is where its governing power is exercised. Id., 65. Real
estate of national banking association not taxable under this section. 74 C. 449. Such deposits must be listed here. Id. Water
mains. 79 C. 70; 85 C. 119. Includes cash of corporation in hands of receiver. 82 C. 409. Applies to bank deposits in N.Y.
belonging to a Conn. corporation and used here for corporate purposes in connection with its local business. 92 C. 321.
Application where part of a manufacturing plant is in a fire district. Id., 674. Does not apply to dam or transmission line
of hydroelectric company. 101 C. 394, 400. This section does not give state power to tax the property of national banks.
135 C. 191. Average amount of goods kept in custody of mill by out-of-state owner held not "permanently located" in
town. 145 C. 375. Merchandise located in warehouse in New Haven for seven months of the twelve months preceding
assessment date, held permanently located there for tax purposes. 147 C. 287. Cited. Id., 308. Discussed in relation to
section 12-43. 166 C. 405. Personal property "stationed" in a town for less than seven months is not taxable hereunder. Id.
Where plaintiff's computer system was located in town for more than seven of the twelve months preceding the assessment date but was removed from the state before said date and was only partially owned by plaintiff on assessment date,
held that jurisdictional basis for assessment has been provided by advantages afforded plaintiff by town during time property
was in town and statute is constitutionally unassailable. 26 CS 201. Computer installations within state do not constitute
"establishments" within meaning of the statute. Leasing activities do not constitute "transacting business" in Connecticut.
29 CS 129. Cited. 30 CS 318.