Substitute Senate Bill No. 1176
         Substitute Senate Bill No. 1176

              PUBLIC ACT NO. 97-282


AN  ACT  CONCERNING  PAYMENTS IN LIEU OF TAXES FOR
STATE-OWNED  REAL  PROPERTY   AND   PROPERTY   TAX
EXEMPTIONS   FOR   MANUFACTURING   MACHINERY   AND
EQUIPMENT AND NEW COMMERCIAL VEHICLES.


    Be it enacted  by  the  Senate  and  House  of
Representatives in General Assembly convened:
    Section 1. Subsections  (f) and (g) of section
4b-38 of the general statutes are repealed and the
following is substituted in lieu thereof:
    (f) Not less than two weeks before executing a
lease  of land,  a  building  or  facility  or  an
interest in land  under  subsection  (a) or (b) of
this section, with  a  person, firm or corporation
in the private sector, for a term of six months or
more, the commissioner shall notify in writing the
chief executive officer  of  the  municipality  in
which the land,  building, facility or interest is
located  concerning the  proposed  lease  and  the
manner in which  the  lessee  proposes  to use the
land,  building,  facility   or   interest.   UPON
EXECUTING ANY SUCH  LEASE,  THE COMMISSIONER SHALL
FORWARD  A  COPY  TO  THE  ASSESSOR  OR  BOARD  OF
ASSESSORS OF THE  MUNICIPALITY IN WHICH THE LEASED
PROPERTY IS LOCATED.
    (g)  Notwithstanding the  provisions  of  this
section, the board  of  trustees  of a constituent
unit of the  state  system of higher education may
lease land or  buildings,  or both, and facilities
under the control  and  supervision  of such board
when  such  land,   buildings  or  facilities  are
otherwise  not used  or  needed  for  use  by  the
constituent unit and  such  action seems desirable
to produce income  or  is  otherwise in the public
interest, provided the  treasurer  has  determined
that such action will not affect the status of any
tax-exempt obligations issued  or  to be issued by
the state of  Connecticut. UPON EXECUTING ANY SUCH
LEASE, SAID BOARD  SHALL  FORWARD  A  COPY  TO THE
ASSESSOR OR BOARD OF ASSESSORS OF THE MUNICIPALITY
IN  WHICH THE  LEASED  PROPERTY  IS  LOCATED.  The
proceeds  from  any   lease  or  rental  agreement
pursuant to this  subsection  shall be retained by
the  constituent unit.  Any  land  so  leased  for
private use and  the  buildings  and appurtenances
thereon shall be  subject  to local assessment and
taxation  annually in  the  name  of  the  lessee,
assignee  or sublessee,  whichever  has  immediate
right to occupancy  of  such  land or building, by
the town wherein situated as of the assessment day
of such town  next  following the date of leasing.
Such  land AND  THE  BUILDINGS  AND  APPURTENANCES
THEREON shall not  be  included as property of the
constituent unit for  the  purpose  of computing a
grant in lieu of taxes pursuant to section 12-19a,
AS AMENDED BY  SECTION 2 OF THIS ACT, PROVIDED, IF
SUCH PROPERTY IS  LEASED TO AN ORGANIZATION WHICH,
IF THE PROPERTY WERE OWNED BY OR HELD IN TRUST FOR
SUCH ORGANIZATION WOULD  NOT  BE  LIABLE FOR TAXES
WITH RESPECT TO SUCH PROPERTY UNDER SECTION 12-81,
AS AMENDED BY  SECTIONS  4 AND 5 OF THIS ACT, SUCH
ORGANIZATION SHALL BE  ENTITLED  TO EXEMPTION FROM
PROPERTY TAXES AS THE LESSEE UNDER SUCH LEASE, AND
THE PORTION OF  SUCH  PROPERTY EXEMPTED AND LEASED
TO SUCH ORGANIZATION SHALL BE ELIGIBLE FOR A GRANT
IN LIEU OF TAXES PURSUANT TO SAID SECTION 12-19a.
    Sec. 2. Section 12-19a of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a) On or  before January first, annually, the
Secretary of the  Office  of Policy and Management
shall determine the  amount  due, as a state grant
in lieu of  taxes,  to  each  town  in  this state
wherein state-owned real  property  or reservation
land held in  trust  by  the  state  for an Indian
tribe, except that which was acquired and used for
highways and bridges,  but  not excepting property
acquired and used  for  highway  administration or
maintenance  purposes,  is   located.   The  grant
payable to any  town  under the provisions of this
section in the  state  fiscal year commencing July
1, 1993, and each fiscal year thereafter, shall be
equal to the  total of (1) one hundred per cent of
the property taxes which would have been paid with
respect to any  facility  listed in subsection (w)
of section 1-1 and any other facility certified by
the  Commissioner  of  Correction,  on  or  before
August first of  each  year, to have been used for
incarcerative purposes during the preceding fiscal
year, (2) SUBJECT  TO THE PROVISIONS OF SUBSECTION
(c)  OF  THIS  SECTION,  forty  per  cent  of  the
property taxes which  would  have  been  paid with
respect to the  buildings  and  grounds comprising
Connecticut Valley Hospital  in  Middletown.  Such
grant  shall  commence   with   the   fiscal  year
beginning July 1,  1995,  and continuing each year
thereafter and, (3)  SUBJECT  TO THE PROVISIONS OF
SUBSECTION (c) OF THIS SECTION, twenty per cent of
the property taxes which would have been paid with
respect to all  other  state-owned  real property;
[,] except for  the  exemption  applicable to such
property, on the  assessment list in such town for
the  assessment  date   two  years  prior  to  the
commencement of the  state  fiscal  year  in which
such grant is  payable. For the fiscal year ending
June 30, 1993,  the amount of the grant payable to
each municipality in  accordance with this section
shall be reduced proportionately in the event that
the total of  such grants in such year exceeds the
amount  appropriated  for  the  purposes  of  this
section with respect to such year.
    (b) [Subject to  the  provisions of subsection
(c) of this  section, the annual grant to any town
shall not be  greater  than seven and one-half per
cent of the  total tax levied by such town on real
property.] As used  in  this  section  "total  tax
levied" means the  total real property tax levy in
such town for the fiscal year preceding the fiscal
year in which  a grant in lieu of taxes under this
section is made,  reduced  by the Secretary of the
Office of Policy and Management in an amount equal
to all reimbursements  [made  by  the state in the
previous calendar year]  CERTIFIED  AS  PAYABLE TO
SUCH  TOWN BY  THE  SECRETARY  for  real  property
exemptions and credits  ON  THE TAXABLE GRAND LIST
OR RATE BILL  OF SUCH TOWN FOR THE ASSESSMENT YEAR
THAT CORRESPONDS TO  THAT  FOR  WHICH THE ASSESSED
VALUATION OF THE  STATE-OWNED  LAND  AND BUILDINGS
HAS BEEN PROVIDED.  For  purposes  of this section
and section 12-19b,  any  real  property  which is
owned  by  the   John   Dempsey  Hospital  Finance
Corporation established pursuant to the provisions
of sections 10a-250  to  10a-263, inclusive, or by
one or more  subsidiary  corporations  established
pursuant to subdivision  (13)  of  section 10a-254
and which is  free  from  taxation pursuant to the
provisions of subdivision  (13) of section 10a-254
and  section  10a-259   shall   be  deemed  to  be
state-owned real property.
    (c) [If the  portion  of  the grant payable to
any town in]  IN  the  fiscal year ending June 30,
1991, [or any] AND IN EACH fiscal year thereafter,
THE PORTION OF  THE  GRANT  PAYABLE TO ANY TOWN as
determined   in  accordance   with   [subdivision]
SUBDIVISIONS (2) AND (3) of subsection (a) of this
section, [would] SHALL  NOT be greater than [seven
and one-half per  cent  of the total tax levied by
such  town  on  real  property  in  the  preceding
calendar  year,  except   for  the  provisions  of
subsection (b) of  this section, such grant shall,
with  respect to  each  of  the  following  fiscal
years,  not  be   greater   than]   the  FOLLOWING
percentage of total  tax  levied  by  such town on
real property in  the  preceding  calendar year as
follows: (1) In  the  fiscal  year ending June 30,
1991, ten per  cent, (2) in the fiscal year ending
June 30, 1992,  twelve per cent, (3) in the fiscal
year ending June  30, 1993, fourteen per cent, (4)
in  the  fiscal   year   ending   June  30,  1994,
twenty-seven per cent,  (5)  in  the  fiscal  year
ending June 30, 1995, thirty-five per cent, (6) in
the fiscal year  ending  June  30, 1996, forty-two
per cent, (7)  in  the fiscal year ending June 30,
1997, forty-nine per  cent, (8) in the fiscal year
ending June 30,  1998,  fifty-six per cent, (9) in
the fiscal year  ending June 30, 1999, sixty-three
per cent, (10)  in the fiscal year ending June 30,
2000, seventy per  cent,  (11)  in the fiscal year
ending June 30, 2001, seventy-seven per cent, (12)
in  the  fiscal   year   ending   June  30,  2002,
eighty-four per cent,  (13)  in  the  fiscal  year
ending June 30,  2003,  ninety-two  per  cent, and
(14) in the  fiscal year ending June 30, 2004, and
in each fiscal  year  thereafter,  one hundred per
cent.
    (d) In the  fiscal  year  commencing  July  1,
1992, and in  each  fiscal  year  thereafter,  the
Commissioner of Transportation  shall pay from the
Bradley International Airport  Enterprise  Fund to
the  State Comptroller,  on  or  before  September
fifteenth, [its] THE portion of the state grant in
lieu of taxes payable under the provisions of this
section to the  towns  of  East  Granby, Suffield,
Windsor  and  Windsor   Locks  FOR  REAL  PROPERTY
LOCATED  AT BRADLEY  INTERNATIONAL  AIRPORT.  Such
payment shall be  credited  to  the  appropriation
from the General  Fund for reimbursements to towns
for loss of taxes on state property.
    (e)  NOTWITHSTANDING THE  PROVISIONS  OF  THIS
SECTION IN EFFECT  PRIOR  TO  JANUARY 1, 1997, ANY
GRANT  IN  LIEU   OF  TAXES  ON  STATE-OWNED  REAL
PROPERTY MADE TO  ANY  TOWN IN EXCESS OF SEVEN AND
ONE-HALF PER CENT  OF THE TOTAL TAX LEVIED ON REAL
PROPERTY BY SUCH TOWN IS VALIDATED.
    Sec. 3. Subsections  (a)  and  (b)  of section
12-64 of the general statutes are repealed and the
following is substituted in lieu thereof:
    (a) All the  following-mentioned property, not
exempted, shall be  set  in  the  list of the town
where it is  situated  and,  except  as  otherwise
provided by law,  shall be liable to taxation at a
uniform percentage of  its present true and actual
valuation, not exceeding  one  hundred per cent of
such valuation, to be determined by the assessors:
Dwelling houses, garages,  barns,  sheds,  stores,
shops,  mills,  buildings   used   for   business,
commercial,  financial, manufacturing,  mercantile
and  trading  purposes,  ice  houses,  warehouses,
silos, all other  buildings  and structures, house
lots, all other  building  lots  and  improvements
thereon and thereto, agricultural lands, shellfish
lands, all other  lands  and  improvements thereon
and thereto, quarries, mines, ore beds, fisheries,
property in fish  pounds,  machinery and easements
to use air  space whether or not contiguous to the
surface of the  ground.  An  easement  to  use air
space shall be  an interest in real estate and may
be assessed separately  from  the  surface  of the
ground below it. Any interest in real estate shall
be set by  the assessors in the list of the person
in whose name the title to such interest stands on
the land records.  [and,  if]  IF  the interest in
real estate consists  of  an  easement  to use air
space, whether or not contiguous to the surface of
the ground, which  easement  is  in  the form of a
lease for a  period  of not less than fifty years,
which lease is recorded in the land records of the
town and provides  that  the  lessee shall pay all
taxes, said interest  shall  be  deemed  to  be  a
separate parcel and  shall  be separately assessed
in the name  of  the  lessee.  [,  and  if] IF the
interest in real  estate  consists  of  a lease of
land used for  residential  purposes  which allows
the lessee to remove any or all of the structures,
buildings  or  other  improvements  on  said  land
erected or owned  by  the  lessee,  which lease is
recorded in the  land  records  of  the  town  and
provides that the  lessee shall pay all taxes with
respect to such  structures,  buildings  or  other
improvements, said interest  shall be deemed to be
a separate parcel  and  said structures, buildings
or other improvements shall be separately assessed
in the name  of the lessee, provided such separate
assessment shall not alter or limit in any way the
enforcement of a  lien  on  such  real  estate  in
accordance  with  chapter   205,  for  taxes  with
respect to such  real  estate including said land,
structures, buildings or  other  improvements. For
purposes of determining  the  applicability of the
provisions of this section to any such interest in
real estate, the  term  "lessee"  shall  mean  any
person who is  a  lessee  or  sublessee  under the
terms of the  lease  agreement  in accordance with
which such interest in real estate is established.
    (b) Except as  provided  in  subsection (c) of
this section, any  land,  buildings or easement to
use air rights  belonging  to or held in trust for
the state, not  used  for purposes attributable to
functions of the  state  government  or  any other
governmental purpose but  leased  to  a  person or
organization  for  use   unrelated   to  any  such
purpose, exclusive of  any such lease with respect
to which a  binding agreement is in effect on June
25, 1985, shall be separately assessed in the name
of the lessee  and the lessee shall be required to
pay  property taxes  applicable  to  the  assessed
value of the  portion  of such property subject to
the interest of  the lessee under the terms of the
lease. If such  property OR ANY PORTION THEREOF is
leased to any  organization which, if the property
were  owned  by   or   held   in  trust  for  such
organization, would not  be  liable for taxes with
respect  to  such   property   under  any  of  the
subdivisions  of  section  12-81,  AS  AMENDED  BY
SECTIONS 4 AND  5  OF  THIS ACT, such organization
shall be entitled to exemption from property taxes
as the lessee  under  such  lease,  provided  such
property is used  exclusively  for the purposes of
such  organization as  stated  in  the  applicable
subdivision of said  section  12-81, AS AMENDED BY
SECTIONS 4 AND  5  OF THIS ACT, AND THE PORTION OF
SUCH   PROPERTY   SO   LEASED   TO   SUCH   EXEMPT
ORGANIZATION SHALL BE ELIGIBLE FOR A GRANT IN LIEU
OF TAXES PURSUANT TO SECTION 12-19a, AS AMENDED BY
SECTION 2 OF THIS ACT. Whenever the lessee of such
property is required  to pay property taxes to the
town  in  which   such  property  is  situated  as
provided   in  this   subsection,   the   assessed
valuation of such property subject to the interest
of the lessee  shall not be included in the annual
list  of  assessed   values  of  state-owned  real
property in such  town as prepared for purposes of
state  grants  in  accordance  with  SAID  section
12-19a and the  amount of grant to such town under
said section 12-19a  shall  be  determined without
consideration of such assessed value.
    Sec. 4. Subdivision  (72)  of section 12-81 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (72) [(a)] (A) New machinery and equipment, as
defined herein, acquired  after  October  1, 1990,
and  newly-acquired machinery  and  equipment,  as
defined herein, acquired on or after July 1, 1992,
by  the  person   claiming  exemption  under  this
subdivision, provided this exemption shall only be
applicable  in  the  five  full  assessment  years
following  the  assessment   year  in  which  such
machinery or equipment is acquired, subject to the
provisions  of  subparagraph  [(b)]  (B)  of  this
subdivision. Machinery and  equipment  acquired on
or  after  July   1,   1996,  and  used  in  [the]
CONNECTION  WITH  biotechnology  [industry,  whose
predominant use is  for  manufacturing, processing
or  fabricating;  for  research  and  development,
including experimental or  laboratory research and
development,  design  or   engineering;   for  the
significant servicing, overhauling  or  rebuilding
of machinery and  equipment;  or  for measuring or
testing,] shall qualify  for  the  exemption under
this  subsection.  For   the   purposes   of  this
subdivision: [(A)] (i) "Machinery" and "equipment"
mean tangible personal  property  which  is  [(i)]
installed in a  manufacturing  facility, [operated
by a manufacturer,]  either  five-year property or
seven-year property, as those terms are defined in
Section 168(e) of  the  Internal  Revenue  Code of
1986,  or any  subsequent  corresponding  internal
revenue code of the United States, as from time to
time amended, and  the predominant use of which is
for manufacturing, processing  or fabricating; for
research and development,  including  experimental
or laboratory research  and development, design or
engineering directly related to manufacturing; for
the   significant   servicing,    overhauling   or
rebuilding   of  machinery   and   equipment   for
industrial use or  the  significant overhauling or
rebuilding of other  products  on a factory basis;
for measuring or  testing  or for metal finishing;
or  [(ii)]  used   in  the  production  of  motion
pictures, video and  sound recordings. "Machinery"
means the basic  machine  itself, including all of
its  component  parts  and  contrivances  such  as
belts, pulleys, shafts,  moving  parts,  operating
structures and all  equipment  or  devices used or
required  to  control,  regulate  or  operate  the
machinery,    including,    without    limitation,
computers and data  processing equipment, together
with all replacement  and  repair  parts therefor,
whether  purchased separately  or  in  conjunction
with a complete machine, and regardless of whether
the  machine  or   component   parts  thereof  are
assembled  by  the   taxpayer  or  another  party.
"Equipment"  means  any   device   separate   from
machinery  but  essential   to   a  manufacturing,
processing  or  fabricating  process.  [(B)]  (ii)
"Manufacturing facility" means  that  portion of a
plant, building or other real property improvement
used for manufacturing, processing or fabricating,
for    research   and    development,    including
experimental    or   laboratory    research    and
development,   design  or   engineering   directly
related  to  manufacturing,  for  the  significant
servicing, overhauling or  rebuilding of machinery
and   equipment  for   industrial   use   or   the
significant  overhauling or  rebuilding  of  other
products on a  factory  basis,  for  measuring  or
testing  or  for   metal  finishing.  [(C)]  (iii)
"Manufacturing" means the  activity  of converting
or  conditioning  tangible  personal  property  by
changing  the  form,   composition,   quality   or
character of the  property  for  ultimate  sale at
retail or use in the manufacturing of a product to
be ultimately sold at retail. Changing the quality
of property shall include any substantial overhaul
of the property  that  results  in a significantly
greater service life than such property would have
had  in the  absence  of  such  overhaul  or  with
significantly  greater  functionality  within  the
original  service life  of  the  property,  beyond
merely restoring the  original  functionality  for
the balance of  the  original  service life. [(D)]
(iv) "Fabricating" means  to  make, build, create,
produce  or  assemble   components   or   tangible
personal  property work  in  a  new  or  different
manner. [(E)] (v)  "Processing" means the physical
application of the  materials  and labor necessary
to  modify  or   change   the  characteristics  of
tangible personal property.  [(F)] (vi) "Measuring
or  testing"  includes   both  nondestructive  and
destructive   measuring  or   testing,   and   the
alignment and calibration  of machinery, equipment
and   tools,   in    the    furtherance   of   the
manufacturing,   processing  or   fabricating   of
tangible    personal   property.    [(G)]    (vii)
"Biotechnology"   means   the    application    of
technologies, [such as]  INCLUDING recombinant DNA
techniques, biochemistry, molecular  and  cellular
biology,   genetics   and   genetic   engineering,
biological  cell  fusion   techniques,   and   new
bioprocesses, using living  organisms, or parts of
organisms,  to  produce  or  modify  products,  to
improve   plants  or   animals,   to   development
microorganisms  for  specific  uses,  to  identify
targets   for   small    molecule   pharmaceutical
development, to transform  biological systems into
useful  processes  and   products  or  to  develop
microorganisms for specific uses;
    [(b)] (B) Any  person  who on October first in
any year holds  title  to  machinery and equipment
for  which  he  desires  to  claim  the  exemption
provided in this  subdivision  shall file with the
assessor or board of assessors in the municipality
in which the machinery or equipment is located, on
or before the  first day of November in such year,
a list of  such  machinery  or  equipment together
with written application  claiming  such exemption
on a form  prescribed  by  the  Secretary  of  the
Office of Policy  and Management. Such application
shall include the  taxpayer  identification number
assigned to the  claimant  by  the Commissioner of
Revenue   Services  and   the   federal   employer
identification number assigned  to the claimant by
the Secretary of  the  Treasury.  If title to such
equipment is held  by  a  person  other  than  the
person claiming the  exemption, the claimant shall
include on his  application  information as to the
portion of the  total acquisition cost incurred by
him, and on or before the first day of November in
such  year,  the  person  holding  title  to  such
machinery and equipment  shall file a list of such
machinery with the assessor of the municipality in
which the manufacturing  facility  of the claimant
is located. Such  person shall include on the list
information  as  to   the  portion  of  the  total
acquisition cost incurred  by  him.  Commercial or
financial information in  any  application or list
filed under this  section  shall  not  be open for
public inspection, provided  such  information  is
given in confidence  and  is  not available to the
public from any  other  source.  The provisions of
this subdivision regarding the filing of lists and
information shall not  supersede  the requirements
to file tax  lists  under  sections  12-42, 12-43,
12-57a and 12-59. In substantiation of such claim,
the  claimant and  the  person  holding  title  to
machinery and equipment  for  which  exemption  is
claimed shall present  to the assessor or board of
assessors such supporting  documentation  as  said
secretary may require,  including, but not limited
to, invoices, bills  of  sale, contracts for lease
and  bills  of   lading.   Failure  to  file  such
application in this  manner  and  form  within the
time limit prescribed shall constitute a waiver of
the right to  such  exemption  for such assessment
year, unless an  extension  of time is allowed [by
the  Secretary  of   the   Office  of  Policy  and
Management as set  forth  in]  PURSUANT TO section
12-81k. [and upon  payment of the required fee for
late filing.] If  title  to  exempt  machinery  is
conveyed  subsequent  to   October  first  in  any
assessment  year, entitlement  to  such  exemption
shall terminate for  the  next assessment year and
there shall be  no  pro  rata  application  of the
exemption  unless  such   machinery  or  equipment
continues to be  leased  by  the  manufacturer who
claimed and was  approved for the exemption in the
previous assessment year.  Machinery  or equipment
[that was exempt  under  this  subdivision  for  a
five-year term or  a portion thereof] shall not be
eligible for exemption upon transfer to a business
organization related to  or  affiliated  with  the
seller OR FROM  A LESSOR TO A LESSEE EXCEPT TO THE
EXTENT IT WOULD  HAVE  BEEN ELIGIBLE FOR EXEMPTION
BY THE SELLER OR THE LESSOR, AS THE CASE MAY BE;
    [(c)] (C) Any  person  claiming  the exemption
provided under this  subdivision  for machinery or
equipment  shall not  be  eligible  to  claim  the
exemption provided under  subdivision (60) of this
section or subdivision  (70)  of  this section for
the same machinery or equipment. The state and the
municipality and district  shall  hold  a security
interest,  as  defined   in  subdivision  (37)  of
section 42a-1-201, in  any  machinery or equipment
which is exempt  from  taxation  pursuant  to this
subdivision, in an amount equal to the tax revenue
reimbursed or lost,  as  the  case  may  be, which
shall  be  subordinate   to   any  purchase  money
security   interest,   as   defined   in   section
42a-9-107.  Such  security   interest   shall   be
enforceable against the  claimant  for a period of
five years after the last assessment year in which
such exemption was  received  in any case in which
said   manufacturer   ceases   all   manufacturing
operations or moves  its  manufacturing operations
entirely out of  this  state.  [A  public  service
company, as defined  in section 16-1, shall not be
eligible for the  exemption  provided  under  this
subdivision] THE FOLLOWING  SHALL  NOT BE ELIGIBLE
FOR THE EXEMPTION PROVIDED UNDER THIS SUBDIVISION:
(i)  A  PUBLIC  SERVICE  COMPANY,  AS  DEFINED  IN
SECTION 16-1; AND  (ii)  ANY PROVIDER, DIRECTLY OR
INDIRECTLY, OF ELECTRICITY, OIL, WATER OR GAS;
    [(d)] (D) A  claim  for property tax exemption
under  this  subdivision  may  be  denied  by  the
assessor  or  board   of   assessors  of  a  town,
consolidated town and  city  or  consolidated town
and  borough,  with   the  consent  of  the  chief
executive  officer thereof,  if  the  claimant  is
delinquent in a property tax payment to such town,
consolidated town and  city  or  consolidated town
and  borough,  pursuant  to  section  12-146,  for
property owned by  such  claimant. Before any such
claim  is  denied,   the   assessor  or  board  of
assessors  shall  send   written   notice  to  the
claimant, stating that  he  may  pay the amount of
such delinquent tax  or  enter  into  an agreement
with such town,  consolidated  town  and  city  or
consolidated  town and  borough  for  the  payment
thereof, by the  date  set  forth  in said notice,
provided, such date  shall not be less than thirty
days after the date of such notice. Failure on the
part of the  claimant  to  pay  the  amount of the
delinquent tax or  enter  into an agreement to pay
the amount thereof  by said date shall result in a
disallowance of the exemption being claimed.
    Sec. 5. Subdivision  (74)  of section 12-81 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    [(a)] (A) For  a  period  not  to  exceed five
[full] assessment years  following  the assessment
year in which  it is purchased, any new commercial
truck, truck tractor, tractor and semitrailer, and
vehicle used in  combination  therewith,  which is
used exclusively to transport freight for hire and
[(A)]  (i)  is   either   [(1)]   subject  to  the
jurisdiction of the  United  States  Department of
Transportation pursuant to  Chapter  135  of Title
49, United States  Code, OR ANY SUCCESSOR THERETO,
or  [(2)]  would  otherwise  be  subject  to  said
jurisdiction except for  the fact that the vehicle
is used exclusively  in intrastate commerce; [(B)]
(ii) has a  gross  vehicle weight rating in excess
of twenty-six thousand  pounds;  and  [(C)]  (iii)
prior to August  1,  1996,  was  not registered in
this state or  in  any  other jurisdiction but was
registered in this state on or after said date. As
used in this  subdivision,  "gross  vehicle weight
rating" shall have  the same meaning as in section
14-1;
    [(b)] (B) Any  person  who on October first in
any year holds  title to OR IS THE REGISTRANT OF a
vehicle  for  which   he   intends  to  claim  the
exemption provided in  this subdivision shall file
with the assessor  or  board  of  assessors in the
municipality in which  the  vehicle  is subject to
property taxation, on  or  before the first day of
November  in  such  year,  a  written  application
claiming such exemption  on  a  form prescribed by
the  Secretary  of   the   Office  of  Policy  and
Management. Such person  shall include information
as  to  the   make,   model,   year   and  vehicle
identification   number   of   [all]   EACH   such
[vehicles] VEHICLE, and any appurtenances attached
thereto, in such  application.  The person holding
title to [any]  OR  THE REGISTRANT OF SUCH vehicle
for which exemption  is  claimed shall furnish the
assessor  or  board   of   assessors   with   such
supporting  documentation as  said  secretary  may
require, including, but  not  limited to, evidence
of vehicle use, ACQUISITION COST and registration.
With  respect  to   any   vehicle  for  which  the
exemption under this  subdivision  has  previously
been  claimed,  the   person  shall  also  include
information as to  any  modifications  made to the
vehicle subsequent to  the  assessment  date  with
respect to which  said  exemption  was  previously
claimed. Failure to  file such application in this
manner and form  within  the time limit prescribed
shall constitute a  waiver  of  the  right to such
exemption  for such  assessment  year,  unless  an
extension of time  is allowed [by the Secretary of
the Office of  Policy  and Management] as provided
in section 12-81k;  [,  and  upon  payment  of the
required fee for late filing;]
    (C) WITH RESPECT  TO  ANY VEHICLE WHICH IS NOT
REGISTERED ON THE  FIRST  DAY  OF  OCTOBER  IN ANY
ASSESSMENT YEAR AND WHICH IS REGISTERED SUBSEQUENT
TO SAID FIRST  DAY  OF  OCTOBER  BUT  PRIOR TO THE
FIRST DAY OF  AUGUST  IN SUCH ASSESSMENT YEAR, THE
VALUE OF SUCH  VEHICLE  FOR PROPERTY TAX EXEMPTION
PURPOSES SHALL BE  A PRO RATA PORTION OF THE VALUE
DETERMINED IN ACCORDANCE  WITH SUBPARAGRAPH (D) OF
THIS SUBDIVISION, TO BE DETERMINED BY A RATIO, THE
NUMERATOR OF WHICH  SHALL  BE THE NUMBER OF MONTHS
FROM THE DATE  OF SUCH REGISTRATION, INCLUDING THE
MONTH IN WHICH  REGISTRATION  OCCURS, TO THE FIRST
DAY OF OCTOBER NEXT SUCCEEDING AND THE DENOMINATOR
OF WHICH SHALL  BE  TWELVE.  FOR  PURPOSES OF THIS
SUBDIVISION THE TERM  "ASSESSMENT  YEAR" MEANS THE
PERIOD  OF  TWELVE  FULL  MONTHS  COMMENCING  WITH
OCTOBER FIRST EACH YEAR;
    [(c) The] (D)  NOTWITHSTANDING  THE PROVISIONS
OF  SECTION  12-71d,  THE  assessor  or  board  of
assessors  shall  determine  the  value  for  each
vehicle  with  respect   to   which  a  claim  for
exemption  under this  subdivision  is  [made,  in
accordance with sections 12-71b and 12-71d. In the
event  the provisions  of  section  12-71b  become
applicable to any  such vehicle, the tax collector
shall reflect the  reduction  or  addition  to the
amount  of  revenue  loss  with  respect  to  such
vehicle, on the  next  claim for reimbursement the
tax collector files  pursuant  to  section 12-94b]
APPROVED,  BASED  ON   THE   VEHICLE'S   COST   OF
ACQUISITION,  INCLUDING  COSTS   RELATED   TO  THE
MODIFICATION  OF  SUCH   VEHICLE,   ADJUSTED   FOR
DEPRECIATION IN ACCORDANCE  WITH  THE SCHEDULE SET
FORTH IN SECTION 12-94c.
    Sec. 6. This  act  shall  take effect from its
passage and sections  4  and 5 shall be applicable
to assessment years commencing on or after October
1, 1996.

Approved June 26, 1997