Sec. 12-62n. Municipal option to adopt assessment rates limiting property tax increases on apartment and residential properties.
Sec. 12-62n. Municipal option to adopt assessment rates limiting property tax
increases on apartment and residential properties. (a) For the purposes of this
section:
(1) "Apartment property" means a building containing five or more dwelling units
used for human habitation, the parcel of land on which such building is situated, and
any accessory buildings or other improvements located on such parcel;
(2) "Base year" means the fiscal year immediately preceding the fiscal year in which
a municipality levies property taxes on the basis of assessments derived from a revaluation implemented pursuant to section 12-62; and
(3) "Residential property" means a building containing four or fewer dwelling units
used for human habitation, the parcel of land on which such building is situated, and
any accessory buildings or other improvements located on such parcel.
(b) Notwithstanding any provision of the general statutes or any special act, municipal charter or any home rule ordinance, any municipality in which the provisions of
section 12-62d are effective for the assessment year commencing October 1, 2005, may,
by ordinance, adopt the property tax system described in this section, provided the
assessor of such municipality determines that without implementation of such property
tax system, implementation of a revaluation for the assessment year commencing October 1, 2006, would result in an increase of twenty per cent in the share of the total
grand levy for all property in the year following the base year, for the property classes
composed of apartment property and residential property.
(c) In any municipality that adopts the property tax system under this section, the
assessor shall determine a rate of assessment for apartment property and residential
property for the assessment year in which a revaluation is effective, that will have the
effect of increasing the average property tax as a result of revaluation for the property
classes composed of apartment property and residential property, by three and one-half
per cent over the property tax for said property classes in the base year. Tax increases
on apartment property and residential property provided for in this subsection shall be
used to reduce, in the amount derived from such increases, the surcharge under section
12-62d. The assessor shall recalculate the rate of assessment for apartment property and
residential property for each of the four assessment years following the assessment year
in which the provisions of this section become effective such that the average property
tax for the property classes composed of apartment property and residential property
increases as a result of said revaluation by three and one-half per cent over the average
property tax provided by this subsection for such property classes in each prior fiscal
year. Notwithstanding the provisions of subsection (b) of section 12-62a, the assessor
shall establish a rate of assessment for all real property other than apartment property
and residential property, to effectuate the provisions of this section.
(d) Subject to the apartment and residential property tax relief described in subsection (c) of this section and concurrent with the assessment year in which a municipality
adopts and implements the property tax system under this section, such municipality
shall begin to phase out proportionately the impact of the property tax surcharge under
section 12-62d to the extent necessary to accomplish the purposes of this section. For
the assessment year commencing October 1, 2010, such property tax surcharge shall
not exceed seven and one-half per cent of the property tax for all property other than
apartment property and residential property.
(P.A. 06-183, S. 2.)
History: P.A. 06-183 effective July 1, 2006, and applicable to assessment years commencing on or after October 1, 2006.