Senate Bill No. 1262
Senate Bill No. 1262
PUBLIC ACT NO. 97-137
AN ACT CONCERNING TAXATION OF THE
TELECOMMUNICATIONS INDUSTRY.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. Section 12-80a of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) Any (1) taxpayer which, prior to January
1, 1990, was subject to tax under chapter 211 with
respect to the rendering of telecommunications
service and which, on or after January 1, 1990, is
subject to tax under chapter 219 for RENDERING
telecommunications service [rendered,] AND (2)
OTHER TAXPAYER THAT IS SUBJECT TO TAX UNDER
CHAPTER 219 FOR RENDERING TELECOMMUNICATIONS
SERVICE AND WHICH HAS ELECTED IN THE MANNER
SPECIFIED IN THIS SECTION TO HAVE PERSONAL
PROPERTY TAXED AS PROVIDED IN THIS SECTION, shall
be required to submit to the Commissioner of
Revenue Services and the Secretary of the Office
of Policy and Management, not later than the
thirtieth day of November of each year during
which it is subject to tax under chapter 219, a
list of all personal property THAT IS owned by
such taxpayer in this state on the first day of
October of such year AND THAT IS USED SOLELY AND
EXCLUSIVELY FOR RENDERING TELECOMMUNICATIONS
SERVICE, AS DEFINED IN SAID CHAPTER 219, including
the location of each item of such property and the
fair market value thereof, recognizing
depreciation of such property to the maximum
extent allowed for purposes of the corporation
business tax in this state, as certified by the
Commissioner of Revenue Services. If the records
of a taxpayer subject to the requirements of this
subsection do not contain the data necessary to
develop the list as required without undue cost,
the taxpayer may, for purposes of requirements
under this subsection, petition the Commissioner
of Revenue Services for approval of an alternate
method of determining the value of the plant used
SOLELY AND EXCLUSIVELY to [transmit] RENDER
telecommunications services, but not including
central office or switching equipment of that
taxpayer, located in each town in the state. If
the commissioner finds that the alternative method
proposed results in a reasonable approximation of
the value of the property of the taxpayer located
in each town AND USED SOLELY AND EXCLUSIVELY FOR
RENDERING TELECOMMUNICATIONS SERVICE, the
commissioner shall notify the taxpayer that the
proposed alternate method is acceptable and the
taxpayer shall be permitted to use the alternate
method in developing the list required under this
subsection.
(b) Not later than the first day of February
immediately following the end of such tax year,
the Secretary of the Office of Policy and
Management shall determine, with respect to such
company, a value for personal property equivalent
to seventy per cent of the value of personal
property included in the list of such property
prepared and certified in accordance with
subsection (a) of this section. The amount of tax
applicable with respect to such personal property
of any taxpayer subject to the tax imposed under
this section shall be determined by multiplying
the value of personal property of such company, as
determined under this subsection, by a mill rate
of forty-seven mills. Said secretary shall, not
later than the first day of March immediately
following the end of such tax year, submit a tax
bill to each company stating the amount of tax
payable to each town in relation to the personal
property of such taxpayer located in such town.
Such tax shall be due and payable to the town in
which such personal property is located not later
than the first day of April immediately following.
Any city or borough not consolidated with the town
in which it is located and any town containing
such a city or borough shall receive a portion of
the tax due and payable to such town on the basis
of the following ratio: The total taxes levied in
the previous fiscal year by such town, city or
borough shall be the numerator of the fraction.
The total taxes levied by the town and all cities
or boroughs located within such town shall be
added together, and the sum shall be the
denominator of the fraction. Any such city or
borough may, by vote of its legislative body,
direct the Secretary of the Office of Policy and
Management to reallocate all or a portion of the
share of such city or borough to the town in which
it is located.
(c) With respect to tangible personal
property included in the list of such property
submitted to the Secretary of the Office of Policy
and Management as provided in subsection (a) of
this section, any taxpayer subject to the tax
imposed under this section for any tax year shall
not be subject to property tax in any town
applicable to such personal property for the
assessment year in such town commencing on the
first day of October immediately preceding the
date on which the tax determined with respect to
such property in accordance with this section
becomes due and payable.
(d) ANY TAXPAYER THAT, ON OR AFTER JANUARY 1,
1990, IS SUBJECT TO TAX UNDER CHAPTER 211 FOR
RENDERING TELECOMMUNICATIONS SERVICE BUT THAT,
PRIOR TO JANUARY 1, 1990, WAS NOT SUBJECT TO TAX
UNDER CHAPTER 219 FOR RENDERING TELECOMMUNICATIONS
SERVICE MAY ELECT TO HAVE PERSONAL PROPERTY TAXED
IN THE MANNER SPECIFIED IN THIS SECTION. SUCH
ELECTION SHALL BE MADE IN WRITING AND FILED WITH
THE SECRETARY OF THE OFFICE OF POLICY AND
MANAGEMENT AND A COPY THEREOF SHALL BE FILED WITH
THE ASSESSOR OF EACH TOWN IN WHICH PERSONAL
PROPERTY AFFECTED BY SUCH ELECTION IS LOCATED.
SUCH ELECTION, ONCE FILED WITH THE SECRETARY,
SHALL BE IRREVOCABLE AND SHALL, IF FILED ON OR
BEFORE THE DATE THAT IS TWO MONTHS PRIOR TO THE
START OF THE ASSESSMENT YEAR, BE EFFECTIVE FOR
SUCH ASSESSMENT YEAR AND FOR ALL SUCCEEDING
ASSESSMENT YEARS, OTHERWISE TO BE EFFECTIVE FOR
THE NEXT SUCCEEDING ASSESSMENT YEAR AND ALL
SUCCEEDING ASSESSMENT YEARS.
(e) FOR ASSESSMENT YEARS COMMENCING ON OR
AFTER OCTOBER 1, 1997, THE PROVISIONS OF THIS
SECTION, INCLUDING INFORMATIONAL REPORTING
REQUIREMENTS IMPOSED ON OWNERS, SHALL ALSO APPLY,
TO THE EXTENT PROVIDED IN SECTION 3 OF THIS ACT,
TO PROPERTY THAT IS USED BOTH TO RENDER
TELECOMMUNICATIONS SERVICE SUBJECT TO TAX UNDER
CHAPTER 219 AND TO RENDER COMMUNITY ANTENNA
TELEVISION SERVICE SUBJECT TO TAX UNDER CHAPTER
219 AND THAT IS REQUIRED, UNDER SUBSECTION (a) OF
SECTION 3 OF THIS ACT, TO BE TAXED AS PROVIDED IN
THIS SECTION.
Sec. 2. Section 12-268j of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) The taxation provided for in [chapters]
CHAPTER 211 [and 212] upon gross earnings in any
year shall be in lieu of all taxes with respect to
such year on tangible personal property used
SOLELY AND EXCLUSIVELY in a business so specified
by a company included in section 12-256. [,
subject to the provisions of section 12-256b.]
(b) THE TAXATION PROVIDED FOR IN CHAPTER 211
UPON GROSS EARNINGS IN ANY YEAR SHALL BE IN LIEU
OF ALL TAXES WITH RESPECT TO SUCH YEAR ON PART OF
THE TANGIBLE PERSONAL PROPERTY THAT IS USED BOTH
TO RENDER TELECOMMUNICATIONS SERVICE SUBJECT TO
TAX UNDER CHAPTER 219 AND TO RENDER COMMUNITY
ANTENNA TELEVISION SERVICE SUBJECT TO TAX UNDER
CHAPTER 219. THE PORTION OF SUCH PROPERTY IN LIEU
OF WHICH TAXATION IS PROVIDED FOR IN CHAPTER 211
AND WHICH IS EXEMPT FROM PROPERTY TAX IS
DETERMINED AS PROVIDED IN SECTION 3 OF THIS ACT.
Sec. 3. (NEW) (a) (1) Each taxpayer described
in subsection (a) of section 12-80a of the general
statutes, as amended by section 1 of this act,
that owns tangible personal property used both to
render telecommunications service subject to tax
under chapter 219 of the general statutes and to
render community antenna television service
subject to tax under said chapter 219, shall have
part of such property taxed as provided in said
section 12-80a and part of such property exempt
from property tax in accordance with section
12-268j of the general statutes, as amended by
section 2 of this act.
(2) The portion of such property to be taxed
as provided in section 12-80a of the general
statutes, as amended by section 1 of this act, and
the portion exempt under section 12-268j of the
general statutes, as amended by section 2 of this
act, shall be computed, as provided in regulations
adopted by the Commissioner of Revenue Services in
accordance with the provisions of chapter 54 of
the general statutes, on the basis of the
taxpayer's gross receipts from rendering
telecommunications service, as defined in chapter
219 of the general statutes, and from rendering
community antenna television service, as defined
in said chapter 219, or on some other basis
permitted under such regulations.
(b) (1) Each taxpayer not described in
subsection (a) of section 12-80a of the general
statutes, as amended by section 1 of this act,
that owns tangible personal property used both to
render telecommunications service subject to tax
under chapter 219 of the general statutes and to
render community antenna television service
subject to tax under said chapter 219 shall have
part of such property taxed as provided in chapter
203 of the general statutes, without regard to
said section 12-80a, and part of such property
exempt from property tax in accordance with
section 12-268j of the general statutes, as
amended by section 2 of this act.
(2) The portion of such property to be taxed
as provided in chapter 203 of the general
statutes, without regard to section 12-80a of the
general statutes, as amended by section 1 of this
act, and the portion exempt under section 12-268j
of the general statutes, as amended by section 2
of this act, shall be computed, as provided in
regulations adopted by the Commissioner of Revenue
Services in accordance with the provisions of
chapter 54 of the general statutes, on the basis
of the taxpayer's gross receipts from rendering
telecommunications service, as defined in chapter
219 of the general statutes, and from rendering
community antenna television service, as defined
in said chapter 219, or on some other basis
permitted under such regulations.
(c) For purposes of this section, "assessment
year" means the assessment year under chapter 203
of the general statutes.
Sec. 4. This act shall take effect from its
passage and shall be applicable to calendar years
commencing on or after January 1, 1998, and to
assessment years of municipalities commencing on
or after October 1, 1997.
Approved June 13, 1997