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statutes  is  repealed  and   the   following   is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