Sec. 12-62c. Municipal option to phase in assessment increases resulting from revaluation of real property.
Sec. 12-62c. Municipal option to phase in assessment increases resulting from
revaluation of real property. (a)(1) A town implementing a revaluation of all real
property may phase in a real property assessment increase or a portion of such increase
resulting from such revaluation, by requiring the assessor to gradually increase the assessment or the rate of assessment applicable to such property in the assessment year
preceding that in which the revaluation is implemented, in accordance with one of the
methods set forth in subsection (b) of this section. The legislative body of the town shall
approve the decision to provide for such phase-in, the method by which it is accomplished and its term, provided the number of assessment years over which such gradual
increases are reflected shall not exceed five assessment years, including the assessment
year for which the revaluation is effective. If a town chooses to phase in a portion
of the increase in the assessment of each parcel of real property resulting from said
revaluation, said legislative body shall establish a factor, which shall be not less than
twenty-five per cent, and shall apply such factor to such increases for all parcels of real
property, regardless of property classification. A town choosing to phase in a portion
of assessment increase shall multiply such factor by the total assessment increase for
each such parcel to determine the amount of such increase that shall not be subject to
the phase-in. The assessment increase for each parcel that shall be subject to the gradual
increases in amounts or rates of assessment, as provided in subsection (b) of this section,
shall be (A) the difference between the result of said multiplication and the total assessment increase for any such parcel, or (B) the result derived when such factor is subtracted
from the actual percentage by which the assessment of each such parcel increased as a
result of such revaluation, over the assessment of such parcel in the preceding assessment
year and said result is multiplied by such parcel's total assessment increase.
(2) The legislative body may approve the discontinuance of a phase-in of real property assessment increases resulting from the implementation of a revaluation, at any
time prior to the completion of the phase-in term originally approved, provided such
approval shall be made on or before the assessment date that is the commencement of
the assessment year in which such discontinuance is effective. In the assessment year
following the completion or discontinuance of the phase-in, assessments shall reflect
the valuation of real property established for such revaluation, subject to additions for
new construction and reductions for demolitions occurring subsequent to the date of
revaluation and on or prior to the date of its completion or discontinuance, and the rate
of assessment applicable in such year, as required by section 12-62a.
(b) A town shall use one of the following methods to determine the phase-in of real
property assessment increases or the phase-in of a portion of such increases resulting
from the implementation of a revaluation:
(1) The assessment of each parcel of real property for the assessment year preceding
that in which such revaluation is effective shall be subtracted from the assessment of
each such parcel in the effective year of said revaluation, and the annual amount of
incremental assessment increase for each such parcel shall be the total of such subtraction
divided by the number of years of the phase-in term, provided if a town chooses to phase
in a portion of the assessment increase for each real property parcel, the amount of such
increase that is not subject to the phase-in shall not be reflected in said calculation; or
(2) The ratio of the total assessed value of all taxable real property for the assessment
year preceding that in which a revaluation is effective and the total fair market value of
such property as determined from records of actual sales in said year, shall be subtracted
from the rate of assessment set forth in section 12-62a, and the annual incremental rate
of assessment increase applicable to all parcels of real property shall be the result of
such subtraction divided by the number of years of the phase-in term. Prior to determining such annual incremental rate of assessment increase, a town that chooses to phase
in a portion of the assessment increase for each real property parcel shall multiply the
result of said subtraction by the factor established in accordance with subsection (a) of
this section, to determine the rate of assessment that shall not be subject to such phase-in; or
(3) The ratio of the total assessed value of all taxable real property in each of the
following property classes for the assessment year preceding that in which a revaluation
is effective and the total fair market value of such property in each class as determined
from records of actual sales in said year, shall be subtracted from the rate of assessment
set forth in section 12-62a, and the annual incremental rate of assessment increase applicable to all parcels of real property in each such class shall be the result of such subtraction divided by the number of years of the phase-in term, where such property classes
are: (A) Residential property; (B) commercial property, including apartments containing
five or more dwelling units, industrial property and public utility property; and (C)
vacant land. In the event the assessor determines that there are no records of actual sales
of real property in any such property class in said year or that the number of such actual
sales is insufficient for purposes of determining a rate of increase under this subdivision,
the annual incremental rate of assessment increase determined under subdivision (2) of
this subsection shall be used for said property class.
(c) The assessment of any new construction that first becomes subject to taxation
during an assessment year encompassed within the term of a phase-in shall be determined
in the same manner as the assessment of all other comparable real property in said
assessment year, such that the total of incremental increases applicable to such other
comparable real property are reflected in the assessment of such new construction prior
to the proration of such assessment pursuant to section 12-53a.
(d) Not later than thirty business days after the date a town's legislative body votes
to phase in real property assessment increases resulting from such revaluation, or votes
to discontinue such a phase-in, the chief executive officer of the town shall notify the
Secretary of the Office of Policy and Management, in writing, of the action taken. Any
chief executive officer failing to submit a notification to said secretary as required by
this subsection, shall forfeit one hundred dollars to the state for each such failure.
(July Sp. Sess. P.A. 87-1, S. 6, 9; P.A. 91-79, S. 3, 4; P.A. 95-283, S. 66, 68; P.A. 06-148, S. 2; 06-176, S. 3; 06-196,
S. 296-298.)
History: July Sp. Sess. 87-1, S. 6 effective July 24, 1987, and applicable in any municipality to any assessment year
commencing in 1987, 1988 or 1989 in which a general revaluation of real property is effective in such municipality; P.A.
91-79 amended Subsec. (a) to make the section applicable to any assessment year commencing on or after October 1, 1987,
deleting former October 1, 1989, cutoff date, and amended Subsec. (b) to set criteria for determining if increments are
equal, effective April 26, 1991, and applicable to assessment years of municipalities commencing on or after October 1,
1991; P.A. 95-283 amended Subsecs. (a) and (b) to make technical changes replacing four with three years immediately
following the year of revaluation in Subsec. (a) and replacing five with four years including the year of revaluation in Subsec.
(b), effective July 6, 1995; P.A. 06-148 revised section to provide for phase-in of assessment increases, implementing a
revaluation over not more than five years, and discontinuance of a phase-in, specify methods to be used to determine
amount of increase, provide for assessment of new construction under phase-in, require notice to the Office of Policy and
Management of votes to allow phase-in or discontinuance of phase-in, and provide for a penalty of $100 for failure to
submit the notification, effective June 6, 2006, and applicable to assessment years commencing on or after October 1,
2006; P.A. 06-176 revised section to provide for phase-in of assessment increases or portion of such increases, implementing
a revaluation over not more than five years, and discontinuance of a phase-in, specify methods to be used to determine
assessment increases or the phase-in of a portion of such increases, assessment of new construction and notice to the Office
of Policy and Management of votes to allow phase-in or discontinuance of phase-in, and provide for a penalty of $100 for
failure to submit the notification, effective June 9, 2006, and applicable to assessment years commencing on or after
October 1, 2006; P.A. 06-196 changed effective date of P.A. 06-176, S. 3 from June 9, 2006, and applicable to assessment
years commencing on or after October 1, 2006, to October 1, 2006, and applicable to assessment years commencing on
or after October 1, 2005, effective June 7, 2006, and amended Subsecs. (a) and (d) by deleting provisions re board of
selectmen, effective October 1, 2006, and applicable to assessment years commencing on or after October 1, 2005.