Sec. 8-134a. Allocation of taxes on real or personal property in a redevelopment project.
Sec. 8-134a. Allocation of taxes on real or personal property in a redevelopment project. Any redevelopment plan authorized under this chapter or any proceedings
authorizing the issuance of bonds under this chapter may contain a provision that taxes,
if any, identified in such plan or such authorizing proceedings and levied upon taxable
real or personal property, or both, in a redevelopment project each year, or payments
in lieu of such taxes authorized pursuant to chapter 114, or both, by or for the benefit
of any one or more municipalities, districts, or other public taxing agencies after the
effective date of the ordinance approving the redevelopment plan or such bond authorizing proceedings, as the case may be, shall be divided as follows: (1) In each fiscal year
that portion of the taxes or payments in lieu of taxes, or both, which would be produced
by applying the then current tax rate of each of the taxing agencies to the total sum of
the assessed value of the taxable property in the redevelopment project on the effective
date of such ordinance or the date of such authorizing proceedings, as the case may be,
or on any date between such two dates which is identified in such proceedings, shall be
allocated to and when collected shall be paid into the funds of the respective taxing
agencies in the same manner as taxes by or for said taxing agencies on all other property
are paid; and (2) that portion of the assessed taxes or payments in lieu of taxes, or both,
each fiscal year in excess of the amount referred to in subdivision (1) of this section shall
be allocated to and when collected shall be paid into a special fund of the municipality or
the Connecticut Development Authority as issuer of such bonds to be used in each fiscal
year, first to pay the principal of and interest due in such fiscal year on loans, moneys
advanced to, or indebtedness, whether funded, refunded, assumed, or otherwise, incurred by such municipality or the Connecticut Development Authority as issuer of such
bonds to finance or refinance in whole or in part, such redevelopment project, and then,
at the option of the municipality or the Connecticut Development Authority as issuer
of such bonds, to purchase bonds issued for the project which has generated the increments in taxes or payments in lieu of taxes and then, at the option of the municipality
or the Connecticut Development Authority as issuer of such bonds, to reimburse the
provider of or reimbursement party with respect to any guarantee, letter of credit, policy
of bond insurance, funds deposited in a debt service reserve fund, funds deposited as
capitalized interest or other credit enhancement device used to secure payment of debt
service on any bonds, notes or other indebtedness of a municipality or the Connecticut
Development Authority as issuer of such bonds issued pursuant to section 8-134 to
finance or refinance such redevelopment project, to the extent of any payments of debt
service made therefrom. Unless and until the total assessed valuation of the taxable
property in a redevelopment project exceeds the total assessed value of the taxable
property in such project as shown by the last assessment list, referred to in subdivision
(1) of this section, all of the taxes levied and collected and all of the payments in lieu
of taxes due and collected upon the taxable property in such redevelopment project shall
be paid into the funds of the respective taxing agencies. When such loans, advances,
and indebtedness, if any, and interest thereon, and such debt service reimbursement to
the provider of or reimbursement party with respect to such credits, have been paid, in
full, all moneys thereafter received from taxes or payments in lieu of taxes, or both,
upon the taxable property in such redevelopment project shall be paid into the funds of
the respective taxing agencies in the same manner as taxes on all other property are paid.
(P.A. 74-319, S. 2; P.A. 87-572, S. 2, 5; P.A. 88-233, S. 2, 5; P.A. 98-237, S. 2.)
History: P.A. 87-572 made extensive amendments in procedures for issuance and payment of debt; P.A. 88-233 included
payments in lieu of taxes, provided for multiple jurisdiction projects and allowed for a municipally-fixed assessment
date for the valuation of taxable property; P.A. 98-237 applied provisions to personal property and inserted reference to
Connecticut Development Authority for consistency with other 1998 statutory changes.