Substitute House Bill No. 6952

Public Act No. 99-189

An Act Concerning Technical Changes and Clarifications to the Assessment of Personal Property and the Optional Tax Relief Program for Certain Elderly and Disabled Homeowners.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 12-40 of the general statutes is repealed and the following is substituted in lieu thereof:

The assessors in each town, except as otherwise specially provided by law, shall, on or before the fifteenth day of October annually, post on the signposts therein, if any, or at some other exterior place near the office of the town clerk, or publish in a newspaper published in such town or, if no newspaper is published in such town, then in any newspaper published in the state having a general circulation in such town, a notice requiring all persons therein liable to pay taxes to bring in [written or printed lists] a declaration of the taxable personal property belonging to them on the first day of October in that year in accordance with section 12-42, as amended by this act, and the taxable personal property for which a declaration is required in accordance with section 12-43, as amended by this act.

Sec. 2. Section 12-41 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) "Municipality", whenever used in this section, includes each town, consolidated town and city, and consolidated town and borough. [, city and borough.]

(b) No person required by law to file [lists of property subject to taxation with the assessor or board of assessors of any municipality in this state shall be required to include in such lists] an annual declaration of personal property shall include in such declaration motor vehicles which are registered in the office of the state Commissioner of Motor Vehicles.

[(c) Such persons need not include in such lists other tangible personal property, provided a list containing a complete and accurate description of such property owned by such persons, including all such property having a value in excess of the statutory exemptions provided for in section 12-81, has already been filed in the office of the assessor or board of assessors of the respective municipalities in which such lists are required to be filed. Any such person acquiring tangible personal property in addition to that for which a list has already been filed or disposing of any such property described in such list shall, within thirty days of the next succeeding assessment day, file a supplemental list containing a complete and accurate description of such tangible personal property subsequently disposed of or acquired.

(d) Real estate need not be included in such lists, but the Secretary of the Office of Policy and Management shall not approve the elimination of the listing of real estate until the assessor's office of the municipality requesting such approval furnishes evidence to him that the following equipment is available and in use in the assessor's office of such municipality: Tax maps drawn to scale identifying the properties located in the municipality by lot or parcel; field sheets; street cards; owners' cards; property transfer records and building permits. Any such assessor's office utilizing data processing or computer equipment in lieu of any of the equipment enumerated above shall be deemed to be in compliance with requirements in this subsection concerning such enumerated equipment, provided (1) such data processing or computer equipment is used in such manner that duplicates of any records or information as required in this subsection are available and (2) such data processing or computer equipment includes capability of transferring such records or information into printed form. The Secretary of the Office of Policy and Management may also approve a request from the assessor or the board of assessors to compile the abstract of real estate from data contained on the owners' cards, if the equipment above enumerated is in use in the assessor's office or from data available through the use of such data processing or computer equipment, provided such request has been adopted by a majority vote at a regular or special town meeting called for such purpose, or by the legislative body.]

[(e) The provisions of this section shall not apply to the filing of lists required by law with respect to]

(c) The annual declaration of the tangible personal property owned by such person on the assessment date, shall include, but is not limited to, the following property: Machinery used in mills and factories, [goods on hand for sale or consumption in any trading, mercantile, manufacturing or mechanical business, including finished and partly finished goods and raw materials and supplies acquired for sale or for incorporation in merchandise intended for sale,] cables, wires, poles, underground mains, conduits, pipes and other fixtures of water, gas, electric and heating companies, leasehold improvements classified as other than real property and furniture and fixtures of stores, offices, hotels, restaurants, taverns, halls, factories and manufacturers. Commercial or financial information in any declaration filed under this section shall not be open for public inspection.

(d) (1) Any person who fails to file a declaration of personal property on or before the first day of November, or on or before the extended filing date as granted by the assessor pursuant to section 12-42, as amended by this act, shall be subject to a penalty equal to twenty-five per cent of the assessment of such property; (2) any person who files a declaration of personal property in a timely manner, but has omitted property, as defined in section 12-53, as amended by this act, shall be subject to a penalty equal to twenty-five per cent of the assessment of such omitted property. The penalty shall be added to the grand list by the assessor of the town in which such property is taxable.

[(f) The addition of twenty-five per cent to the taxpayers' lists provided by law for failure to file such lists shall apply only to such properties as are not excepted by the provisions of this section.

(g) The Secretary of the Office of Policy and Management shall provide a form of list to be used by property owners in each municipality for the purpose of listing property which is not excepted by the provisions hereof. The assessors of each municipality may provide forms, subject to the approval of the Secretary of the Office of Policy and Management, to be used in carrying out the foregoing provisions.

(h) This section shall take effect with respect to any municipality upon approval by the Secretary of the Office of Policy and Management and upon adoption by a majority vote at a regular or special town meeting called for the purpose or by the legislative body, and thereupon the provisions of section 12-42 shall not apply to such municipality.]

Sec. 3. Section 12-42 of the general statutes is repealed and the following is substituted in lieu thereof:

[Each resident of any town liable to give in a list and pay taxes therein shall, except as otherwise specially provided by law, on or before the first day of November, annually, give in his list, made as prescribed by law, making a separate description of each parcel of real estate.] The assessors may grant an extension of not more than forty-five days to file [such list] the declaration required pursuant to section 12-41, as amended by this act, upon determination that there is good cause. [When reference can be made to a map on file in the town clerk's office, such reference shall be a sufficient description. If he fails to file such list] If no declaration is filed, the assessors shall fill out a [list for him, putting therein] declaration including all property which [they] the assessors have reason to believe is owned by [him] the person for whom such declaration is prepared, liable to taxation, at the percentage of its actual valuation, as determined by the assessors in accordance with the provisions of sections [12-64] 12-63 and 12-71, as amended by this act, from the best information they can obtain, and add thereto twenty-five per cent of such assessment. [and in such list they shall make a separate description and assessment of each parcel of real estate.] When the first day of November is a Saturday or Sunday, the [list] declaration may be [made out] filed or postmarked on the next business day following.

Sec. 4. Section 12-43 of the general statutes is repealed and the following is substituted in lieu thereof:

[All owners of real estate, or] Each owner of tangible personal property located in any town for three months or more during the assessment year immediately preceding any assessment day, who [are nonresidents] is a nonresident of such town, shall file [lists] a declaration of such [real estate and] personal property with the assessors of the town in which the same is located on such assessment day, if located in such town for three months or more in such year, otherwise, in the town in which such property is located for the three months or more in such year nearest to such assessment day, under the same provisions as apply to residents, and such personal property shall not be liable to taxation in any other town in this state. The [list] declaration of each nonresident taxpayer shall contain [his] the nonresident's post-office and street address. The assessors shall mail blank declaration forms to each nonresident, or to [his] such nonresident's attorney or agent having custody of [his] the nonresident's taxable property, at least fifteen days before the expiration of the time for filing [lists, blank forms for filing lists of such property. The lists of taxable property of nonresidents shall be arranged in alphabetical order and separate from the lists of residents, provided no such separation shall be necessary in any town the board of assessors of which, upon the request of its property tax collector, has made rules and regulations approved by the Secretary of the Office of Policy and Management setting up an alternative method of arrangement] such declaration. If the identity or mailing address of a nonresident taxpayer is not discovered until after the expiration of time for filing a declaration, the assessor shall, not later than ten days after determining the identity or mailing address, mail a declaration to the nonresident taxpayer. Said taxpayer shall file the declaration not later than fifteen days after the date such declaration is sent. Each nonresident taxpayer who fails to file a declaration in accordance with the provisions of this section shall be subject to the penalty provided in subsection (d) of section 12-41, as amended by this act. As used in this section, "nonresident" means a person who does not reside in the town in which such person's tangible personal property is located on the assessment day, or a company, corporation, limited liability company, partnership or any other type of business enterprise that does not have an established place for conducting business in such town on the assessment day.

Sec. 5. Section 12-53 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) For purposes of this section: (1) "Omitted property" means property for which complete information is not included in the declaration required to be filed by law with respect to either the total number and type of all items subject to taxation or the true original cost and year acquired of all such items, (2) "books", "papers", "documents" and "other records" includes, but is not limited to, federal tax forms relating to the acquisition and cost of fixed assets, general ledgers, balance sheets, disbursement ledgers, fixed asset and depreciation schedules, financial statements, invoices, operating expense reports, capital and operating leases, conditional sales agreements and building or leasehold ledgers, and (3) "designee of an assessor" means a Connecticut municipal assessor certified in accordance with subsection (b) of section 12-40a, a certified public accountant, a revaluation company certified in accordance with section 12-2c for the valuation of personal property, or an individual certified as a revaluation company employee in accordance with section 12-2b for the valuation of personal property.

[(a)] (b) During the period prescribed by law for the completion of their duties the assessor or board of assessors of each town shall add to the [list given in by any person and made according to law] declaration of each taxpayer any taxable property which they have reason to believe is owned by [him] such taxpayer and has been omitted from such [list, and] declaration. The property so added shall be assessed at the percentage of the actual valuation thereof, as determined by the assessor or board of assessors in accordance with the provisions of sections 12-63 [, 12-64] and 12-71, as amended by this act, from the best information the assessor or board of assessors can obtain, and twenty-five per cent of [such] the assessment of such omitted property shall be added thereto. The assessor or board of assessors shall notify such person, in accordance with section 12-55, as amended by this act, of any such increase in the assessed valuation.

[(b) If the assessor or board of assessors of any town believe that taxable property has been omitted from the list given in by any person or that taxable property belongs to any person who has not given in a list, or if the assessor or board of assessors are unable to determine the value of any property without the assistance of the owner, custodian or other person having knowledge of the same, they may]

(c) (1) The assessor or board of assessors may perform an audit or require a designee of the assessor to perform an audit of any personal property required to be declared pursuant to section 12-40 or section 12-43, as amended by this act. The assessor shall give notice in writing to the owner, custodian or other person having knowledge of any such property or the valuation thereof, of the time and place of [a hearing] such audit with respect [thereto] to such property. Such notice shall [, within three years after the due date for the filing of such list or within three years after the date on which such list is received by the assessor or board of assessors, if later,] be placed in the hands of such person or left at [his] such person's usual place of residence or business or shall be sent to [him] such person by registered or certified mail at [his] the last-known place of residence or business not later than three years following the assessment date for which such declaration was required to be filed. Such notice shall direct the person named therein to appear before the assessor or board of assessors, or before a designee of said assessor, with books of account, papers, documents and other records for examination under oath relative to any such property or the valuation thereof. The methodologies used to determine the value of such property during such audit shall remain consistent with the methodologies requested by the assessor to determine the value of such property for the grand list year to which such audit or audits relate.

(2) All [omitted] taxable property, discovered [at such hearing or any adjournment thereof] during such audit and not [listed] declared by the owner as required by law, shall be added to [his list] the owner's declaration by such assessor or board of assessors at the percentage of its actual valuation, as determined by the assessor or board of assessors in accordance with the provisions of sections 12-63 [, 12-64] and 12-71, as amended by this act, and twenty-five per cent of such assessment shall be added thereto. If personal property is discovered during such audit to have been omitted, as defined in subsection (a) of this section, by the taxpayer, the difference between the value originally determined by the assessor and that determined as a result of the audit, shall be added to the taxpayer's declaration by the assessor at the percentage of its actual valuation pursuant to sections 12-63 and 12-71, as amended by this act, plus twenty-five per cent of the assessment of such omitted property.

(3) [Subject to] Notwithstanding the provisions of sections 12-57 and 12-129, if any property is discovered [at such hearing or any adjournment thereof] during such audit to be listed in error by the owner, it shall be removed from such owner's [list] declaration by the assessor or board of assessors.

(4) No person shall be excused from giving testimony or producing books of account, papers, documents and other records on the ground that such testimony and such production of documents will tend to incriminate [him] such person, but such testimony and such production of documentary evidence shall not be used in any criminal proceeding against [him] such person. Any person who fails to appear at the time and place of such [hearing] audit as designated in such notice, [designated or at any adjournment thereof,] or, having appeared, refuses to answer any pertinent question [put to him] or who fails to produce the books, papers or other documents mentioned in such notice, shall be fined not more than one hundred dollars or imprisoned not more than thirty days or both. All property which the assessor or board of assessors believes should have been [listed] declared for taxation and was not [listed] declared and concerning which sufficient information cannot be obtained by them at such hearing, or any adjournment thereof, shall be added to the list at such percentage of the actual valuation thereof from the best information obtainable by the assessor or board of assessors and twenty-five per cent shall be added to such assessment.

[(c)] (d) If the assessor or board of assessors of any town adds property to the [list] declaration of any person or makes out a [list] declaration for any person not filing a [list] declaration or increases or decreases the valuation of any taxable property under the provisions of subsection [(b)] (c) of this section, they shall, within thirty days of [such hearing or any adjournment thereof] the completion of an audit under said subsection (c), give [him] such person notice [thereof] in writing by mailing the same, postage prepaid, to [his] such person's last-known address and the same shall be held to be sufficient. Such notice shall include, but not be limited to, an accounting of the additions or deletions segregated by the categories of personal property on the declaration used by personal property owners in said town, a revised copy of the declaration reflecting the changes determined at such audit and information describing the manner in which an appeal may be filed with the board of assessment appeals.

[(d)] (e) Any person claiming to be aggrieved by the action of the assessor or board of assessors under this section may appeal the doings of the assessor or board of assessors to the board of assessment appeals and the Superior Court as otherwise provided in this chapter, provided such appeal shall be extended in time to the next succeeding board of assessment appeals if the statutory period for the meeting of such board has passed. Any person intending to so appeal to the board of assessment appeals may indicate that taxes paid by such person for any additional assessment added in accordance with this section, during the pendency of such appeal, are paid "under protest" and thereupon such person shall not be liable for any interest on the taxes based upon such additional assessment, provided (1) such person shall have paid not less than seventy-five per cent of the amount of [such] the taxes resulting from such additional assessment within the time specified and (2) the board of assessment appeals reduces the valuation of property or removes items of property from the list of such person so that there is no tax liability related to such additional assessment.

[(e)] (f) Upon receipt of notice from the assessor or board of assessors of the addition of property to the [list] declaration of any owner, or an increase in the assessment of any property included in such owner's declaration, the tax collector of the town shall, if such notice is received after the normal billing date, [within ten] not later than thirty days thereafter mail or hand a bill to such owner based upon the addition of property to said owner's declaration or the increase in the assessment of any property that had been included in such owner's declaration added by the assessor or board of assessors. Such tax shall be due and payable and collectible as other municipal taxes and subject to the same liens and processes of collection, [provided] except that (1) such tax for the current fiscal year shall be due and payable in an initial or single instalment due and payable not sooner than thirty days after the date such bill is mailed or handed to such owner and in any remaining, regular instalments as the same are due and payable, and the several instalments of the tax so due and payable, shall be equal, and (2) such tax for any prior fiscal year, shall be payable not sooner than thirty days after the date such bill is mailed or delivered to such owner, and shall include interest from the date or dates such tax for the corresponding grand list would have been due.

Sec. 6. Section 12-54 of the general statutes is repealed and the following is substituted in lieu thereof:

Each person liable to give in a [list] declaration of [his] such person's taxable tangible personal property and failing to do so may, within sixty days after the expiration of the time fixed by law for filing such [list] declaration, be notified in writing by the assessors or a majority of them to appear before them to be examined under oath as to [his] such person's property liable to taxation and for the purpose of verifying a [list] declaration made out by them under the provisions of section 12-42, as amended by this act. Any person who wilfully neglects or refuses to appear before the assessors and make oath as to [his] such person's taxable property within ten days after having been so notified or who, having appeared, refuses to answer shall be fined not more than one thousand dollars. The assessors shall promptly notify the proper prosecuting officers of any violation of any provision of this section. Nothing in this section shall be construed to preclude the assessor from performing an audit of such person's taxable personal property, as provided in section 12-53, as amended by this act.

Sec. 7. Subsection (a) of section 12-55 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) When the [lists] declarations of any town have been so received or made by the assessor or board of assessors, they shall equalize the same, if necessary, and make any assessment omitted by mistake or required by law. The assessor or board of assessors may increase or decrease the valuation of property as named in any of such [lists] declarations or in the last-preceding grand list, but, in each case of any increase in valuation of such property above the valuation, if any, stated by the person filing such [list] declaration or in each case of any increase of valuation above the valuation of such property in the last-preceding grand list, except with respect to the valuation of any motor vehicle, they shall send written notice by mail of such increase in accordance with subsection (b) of this section, or in accordance with subsection (f) of section 12-62 in the year of a revaluation, including in such notice the valuation prior to and after such increase with respect to each parcel of real property, the valuation of which has been increased, to the last-known address of the person whose [list or] valuation is so changed. If the methodology used to determine the value of personal property for which a notice of increase is required differs from that previously used to determine the value of such property by the assessor or assessors of such town, said notice shall include a statement concerning such change, which shall indicate the current methodology and that previously used. Such notice shall also include information describing the manner in which an appeal may be filed with the board of assessment appeals. [Such notice shall not be required in any year a notice is sent pursuant to subsection (f) of section 12-62. When such lists have been so] When the review of such declarations has been completed, the assessor or board of assessors shall [arrange such lists in alphabetical order and] determine the assessed valuations resulting therefrom, including, where applicable, the twenty-five per cent assessment penalty added in accordance with section 12-41, as amended by this act. The assessor shall publish all such assessed values, together with the assessed value of all other property in the town in the grand list abstract for the assessment year commencing on the October first immediately preceding completion of such grand list. Such grand list shall also reflect the statutory exemption or exemptions to which each taxpayer is entitled. The assessor or board of assessors shall lodge the same, except as otherwise specially provided by law, in the [town clerk's or assessors'] office of the assessor, on or before the thirty-first day of January following the commencement of such assessment year, for public inspection. Such assessor or board of assessors shall [make an abstract of such lists, including the twenty-five per cent added thereto, shall] take and subscribe the oath provided by law, which shall be certified by the officer administering the same and endorsed upon or attached to such grand list abstract. [, and, except as otherwise specially provided by law, shall lodge such abstract in the town clerk's office, on or before the thirty-first day of January next after the date prescribed for the filing of such lists, for public inspection.] For the grand list of October 1, 2000, and each grand list thereafter, each assessor who signs the grand list of the town shall be certified in accordance with the provisions of section 12-40a. Any assessor or board of assessors of any town who fails to comply with any provision of this section shall be fined five dollars.

Sec. 8. Section 12-57 of the general statutes is repealed and the following is substituted in lieu thereof:

[The assessors of any municipality shall, at any time prior to the payment of the tax represented thereby, or within one year subsequent to the date the tax was paid, issue a certificate of correction removing tangible personal property from the list of any person, when such tangible personal property was not taxable on such list in the name of such person by such municipality, and shall, in case such tangible personal property was subject to taxation on the same grand list by such municipality in the name of some other person and was not so previously assessed in the name of such other person, add such tangible personal property to the list of such other person and, in such event, the tax shall be levied upon, and collected from, such other person.]

(a) When it has been determined by the assessors of a municipality [, at any time prior to or within one year subsequent to the payment of the tax,] that tangible personal property has been assessed when it should not have been, the assessors shall, not later than three years following the tax due date relative to the property, issue a certificate of correction removing such tangible personal property from the list of the person who was assessed in error, whether such error resulted from information furnished by such person or otherwise. [, and, if] If such tangible personal property was subject to taxation on the same grand list by such municipality in the name of some other person and was not so previously assessed in the name of such other person, the assessor shall add such tangible personal property to the list of such other person and, in such event, the tax shall be levied upon, and collected from, such other person. If such tangible personal property should have been subject to taxation for the same taxing period on the grand list of another municipality in this state, the assessors shall promptly notify, in writing, the assessors of the municipality where the tangible personal property should be properly assessed and taxed, and the assessors of such municipality shall assess such tangible personal property and shall thereupon issue a certificate of correction adding such tangible personal property to the list of the person owning such property, and the tax thereon shall be levied and collected by the tax collector. Each such certificate of correction shall be made in duplicate, one copy of which shall be filed with the tax collector of such municipality and the other kept by the assessors [as a permanent record] in accordance with a records retention schedule issued by the public records administrator.

(b) When it has been determined by the assessors of a municipality, at any time, that a motor vehicle registered with the Department of Motor Vehicles has been assessed when it should not have been, the assessors shall issue a certificate of correction removing such vehicle from the list of the person who was assessed in error, and, if such vehicle should have been subject to taxation for the same taxing period on the grand list of another municipality in this state, the assessors shall promptly notify, in writing, the assessors of the municipality where the vehicle should be properly assessed and taxed, and the assessors of such municipality shall assess such vehicle and shall thereupon issue a certificate of correction adding such vehicle to the list of the person owning such vehicle, and the tax thereon shall be levied and collected by the tax collector.

Sec. 9. Section 12-57a of the general statutes is repealed and the following is substituted in lieu thereof:

(a) Any personal property subject to a contract of lease, except any motor vehicle registered with the Commissioner of Motor Vehicles, which property is in the possession of the lessee on any assessment day in the municipality in which the lessee resides, shall, for information purposes only, be included in the [property tax list] personal property declaration of the lessee as an individual entry or as part of a list of such leased property in the possession of the lessee on such assessment day. Such entry or [list] declaration may be in the form of an attachment or a separate category of property in such [list] declaration and with respect to each item of such leased property, the lessee shall be required to include the name and address of the owner of such property and the term of the lease applicable thereto. In the event the lessee is not required to submit a personal property [tax list] declaration in such municipality, any such items of leased personal property shall be recorded in such form as used for purposes of personal property [tax lists] declarations, adding thereto identification of such property as leased personal property and including with respect to each item of such property the name and address of the owner thereof.

(b) Whenever any such lessee of personal property fails to file the information required in this section, it shall be assumed that any such property in the lessee's possession is owned by the lessee, who shall be subject to the penalty as provided in section 12-42, as amended by this act, in the same manner as any owner of personal property who fails to file a [property tax list] personal property declaration as required.

Sec. 10. Section 12-58 of the general statutes is repealed and the following is substituted in lieu thereof:

The property of any trading, mercantile, manufacturing or mechanical business shall be assessed in the name of the owner or owners on the first day of October or such other assessment date as is specially provided by law in the town where the business is carried on; and the [list] personal property declaration of any such owner or owners shall be given in by the person having charge of such business residing in such town, when the owner or owners do not reside therein. The amount of goods on hand for [sale or] consumption in any such business, including finished and partly finished goods and raw materials and supplies, [acquired for sale or for incorporation in merchandise intended for sale,] so assessed shall be the monthly average quantity of goods or supplies on hand during the year ending on the first day of October [or other assessment date] if such owner or owners has or have owned such business during the whole of such year or the monthly average quantity of goods on hand during the portion of the year ending on such date as such owner or owners has or have owned such business if such owner or owners has or have owned such business during only a portion or portions of such year, but this rule shall not apply to furniture, fixtures and machinery which are not for sale in the regular course of any such business. Furniture, fixtures and machinery on hand on the assessment date but not for sale in the regular course of business shall be listed for taxation under such of the other provisions of the general statutes and of special acts as are applicable. This section shall apply to the property of all persons, whether residents of this state or not, and to the property of all corporations, whether domestic or foreign. [Traders of any kind, when their business is not located, shall be assessed, as provided in this section, in the list of the town where they reside; but the goods of any resident or corporation located in this state, in the hands of any merchant or trader for sale on commission, need not be estimated in making up the average provided for in this section in the list of such merchant or trader.] The word "town" as used herein includes a consolidated town and city and a consolidated town and borough.

Sec. 11. Section 12-59 of the general statutes is repealed and the following is substituted in lieu thereof:

The whole property in this state of each corporation organized under the law of this state, whose stock is not liable to taxation, and which is not required to pay a direct tax to this state in lieu of other taxes, and whose property is not expressly exempt from taxation, and the whole property in this state of each corporation organized under the law of any other state or country, including each foreign municipal electric utility, shall be set in [its list and] the grand list and shall be liable to taxation in the same manner as the property of individuals. [The real estate of any such corporation shall be set in the list of the town in which such real estate is situated, and all of the personal estate of such corporation which is permanently located on the assessment day in any town shall be set in the list of the town in which such property is located, and all other personal property of such corporation shall be set in the list of the town in which such corporation has its principal place of business or exercises its corporate powers; and, when it has two or more establishments for transacting its business in different towns, school districts or other municipal subdivisions, it shall be assessed and taxed for each such establishment, and for the personal property attached thereto, or connected therewith, and not permanently located in some other town, in the town, school district or other municipal subdivision having the power of taxation in which such establishment is located.] The stockholders of any corporation, the whole property of which is assessed and taxed in its name, shall be exempt from assessment or taxation for their stock therein. [The words "permanently located", as used herein, mean located for any three or more of the twelve months preceding the assessment day and the words] As used in this section, "foreign municipal electric utility", [as used herein, mean] means a town, city, borough or any municipal corporation, department or agency thereof, of a state other than this state, whether or not separately incorporated, which is authorized under the laws of the state in which it is organized or resident to generate and transmit electric energy and which holds property in this state.

Sec. 12. Section 12-71 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) All goods, chattels and effects or any interest therein, including any interest in a leasehold improvement classified as other than real property, belonging to any person who is a resident in this state, shall be listed for purposes of property tax in the town where such person resides, subject to the provisions of sections [12-43] 12-42, as amended by this act, and 12-59, as amended by this act. Any such property belonging to any nonresident shall be listed for purposes of property tax as provided in [said] section 12-43, as amended by this act.

(b) All property subject to this section shall be valued at the same percentage of its then actual valuation as the assessors have determined with respect to the listing of real estate for the same year, except that any motor vehicle for which number plates have been issued under section 14-20 and any aircraft manufactured prior to January 1, 1946, shall be assessed at a value of not more than five hundred dollars except when otherwise provided by law. The provisions of this section shall not include money or property actually invested in merchandise or manufacturing carried on out of this state.

[(c) The tangible personal property of any person residing within a town having two or more taxing districts shall be assessed in the district in which such property was located the greater portion of the tax year next preceding the day on which such property lists are required to be filed in such town.]

[(d)] (c) Upon payment of [such] the property tax assessed with respect to any property referred to in this section, owned by a resident or nonresident of this state, which is currently used or intended for use in relation to construction, building, grading, paving or similar projects, including, but not limited to, motor vehicles, bulldozers, tractors and any trailer-type vehicle, excluding any such equipment weighing less than five hundred pounds, and excluding any motor vehicle subject to registration pursuant to chapter 246 or exempt from such registration by section 14-34, the town in which such equipment is taxed shall issue, at the time of such payment, for display on a conspicuous surface of each such item of equipment for which such tax has been paid, a validation decal or sticker, identifiable as to the year of issue, which will be presumptive evidence that such tax has been paid in the appropriate town of the state.

[(e)] (d) (1) Personal property subject to taxation under this chapter shall not include computer software, except when the cost thereof is included, without being separately stated, in the cost of computer hardware. "Computer software" shall include any program or routine used to cause a computer to perform a specific task or set of tasks, including without limitation, operational and applicational programs and all documentation related thereto.

(2) The provisions of subdivision (1) of this subsection shall be applicable (A) to the assessment year commencing October 1, 1988, and each assessment year thereafter, and (B) to any assessment of computer software made after September 30, 1988, for any assessment year commencing before October 1, 1988.

(3) Nothing contained in this subsection shall create any implication related to liability for property tax with respect to computer software prior to July 1, 1989.

(4) A certificate of correction in accordance with section 12-57 shall not be issued with respect to any property described in subdivision (1) of this subsection for any assessment year commencing prior to October 1, 1989.

[(f)] (e) For assessment years commencing on or after October 1, 1992, each municipality shall exempt aircraft, as defined in section 15-34, from the provisions of this chapter.

Sec. 13. Section 12-113 of the general statutes is repealed and the following is substituted in lieu thereof:

The board of assessment appeals may reduce the [list] assessment of any person as reflected on the grand list by reducing the valuation, number, quantity or amount of any item of estate therein, or by deleting any item which ought not to be retained in it, provided any such reduction or deletion shall be made by drawing a single line through the item in the list to be reduced or deleted and in the case of a reduction, the corresponding reduced amount shall be entered in such manner as to be clearly related to the item reduced. The board of assessment appeals shall not reduce the [list of] valuation or assessment of property on the grand list belonging to any person who does not appear at a hearing before the board of assessment appeals, either in person or by [his] such person's attorney or agent, and offer or consent to be sworn before it and answer all questions touching [his] such person's taxable property situated in the town.

Sec. 14. Section 12-114 of the general statutes is repealed and the following is substituted in lieu thereof:

The board of assessment appeals [shall not reduce the list of] may adjust the assessment of personal property belonging to any person, or the valuation, number, quantity or amount of any item of property reflected therein, [contained, delete any item or deduct any indebtedness therefrom,] even if [he] such person has refused or unnecessarily neglected to give in [his sworn list] such person's declaration to the assessors as prescribed by law. [If any board of assessment appeals so reduces any such list, its members shall forfeit fifty dollars to their town.] No such adjustment shall be made until the board receives the information necessary to substantiate such adjustment in accordance with subsection (b) of section 12-53, as amended by this act. Any assessment adjusted by such board under the provisions of this section shall be subject to the penalties as provided in section 12-41, as amended by this act.

Sec. 15. Section 12-115 of the general statutes is repealed and the following is substituted in lieu thereof:

The board of assessment appeals in any town or city may, within three months from the date prescribed by law for the completion of its duties, [make a supplemental list of] as set forth in section 12-111, add to the grand list of a town any taxable property which has been omitted by the assessor or board of assessors [and] or the board of assessment appeals, [and make a list] which shall reflect for each owner of such property, an assessment at seventy per cent of the present true and actual value of such owner's taxable property from the best information that it can obtain, and if the owner failed to file [such list] the declaration as prescribed by law, shall add thereto twenty-five per cent of such assessment. Such board of assessment appeals shall mail to such owner at [his] the last known address of the owner, postage paid, within one week after the completion of such supplemental additions to the grand list, a written or printed notice to appear before such board at a stated time and place and show cause why such property should not be [in such supplemental lists] added to such grand list. Any person aggrieved by the action of such board may, within two months from the time of such action, have the same right of appeal to the Superior Court as provided by section 12-117a. The authority designated by section 12-130 shall make and sign a [supplemental] rate bill for such supplemental additions to the grand list and [supplemental warrant,] a warrant with respect to such additions which shall be [delivered to] forwarded by the tax collector to such person, and such collector shall have the same powers for the collection of the tax based on such supplemental additions to such list as for the collection of other taxes.

Sec. 16. Section 12-119a of the general statutes is repealed and the following is substituted in lieu thereof:

(a) Any municipality may, by ordinance, provide that the assessor or board of assessors, in the case of any amount added to an assessment pursuant to section 12-42, 12-43 or 12-53, as amended by this act, or the board of assessment appeals, in the case of any amount added to an assessment pursuant to section 12-111 or 12-115, may waive the addition to any assessment of the twenty-five per cent additional amount. Any such ordinance shall delineate the reasons for which such waiver may be granted and shall provide for the publication of a list of all such waivers granted.

(b) Any municipality may, by ordinance, provide that the additional amount added to any assessment pursuant to section 12-42, 12-43, 12-53, 12-111 or 12-115, as amended by this act, shall equal ten per cent of a taxpayer's assessment rather than the twenty-five per cent additional amount as required by said sections. Such ordinance shall specify that a ten per cent addition to any assessment shall be allowed only if (1) a taxpayer filed a personal property declaration within the time period designated in section 12-41, as amended by this act, and (2) the declaration as filed included complete and accurate information as to the total number and types of items of property subject to taxation in the taxpayer's name. A taxpayer shall be required to establish to the satisfaction of the assessor, board of assessors or board of assessment appeals, as the case may be, that the conditions set forth in the ordinance have been met.

Sec. 17. Section 12-24b of the general statutes is repealed and the following is substituted in lieu thereof:

The provisions of any special act to the extent inconsistent with the provisions of subsection [(e)] (c) of section 12-41, as amended by this act, section 12-58 and subdivision (50) of section 12-81 are repealed.

Sec. 18. Subsection (d) of section 12-62 of the general statutes is repealed and the following is substituted in lieu thereof:

(d) (1) Written notice of the implementation of a revaluation shall be filed by the chief executive officer of the municipality with the Secretary of the Office of Policy and Management. Such notice shall be filed not later than five business days following the date on which final action with respect to the establishment of a mill rate for the revalued grand list is taken. Any municipality which fails to comply with the provisions of this section shall forfeit ten per cent of the total amount of state grants-in-aid determined by statutory formula, as of the date certification of payment is required to be made to such municipality, for the fiscal year next following the October first assessment date on which the required revaluation was not implemented. Such forfeit shall be based upon the state grants-in-aid which are included in the estimate prepared by the Secretary of the Office of Policy and Management pursuant to section 4-71b. For each succeeding assessment year in which the provisions of this section are not met, such municipality shall forfeit ten per cent of such state grants-in-aid. If the secretary determines that such a forfeit is required, he shall cause the certification made to the State Comptroller for each such grant-in-aid to the municipality, to reflect the amount of reduction in such grant-in-aid.

(2) The secretary may waive such forfeit if, in his opinion, there appears to be reasonable cause for the municipality not having implemented a revaluation as required, provided the chief executive officer of the municipality submits a written request for such waiver. Such request shall include the reason for the failure of the municipality to comply with the provisions of this section. The secretary shall promptly consider such request and shall, within fifteen business days, notify the municipality of his decision to grant or deny a waiver of the forfeit. Reasonable cause shall include, [but not be limited to (1)] (A) a postponement of a revaluation in any town or city, provided such postponement is allowed by the secretary in accordance with the provisions of section 12-117, or is ordered by the superior court for the judicial district in which the municipality is located, [(2)] (B) a postponement of a revaluation in any town or city as the result of the existence of extraordinary circumstances or an act of God, (C) failure on the part of any person or organization performing such revaluation under contract to complete contractual duties to the satisfaction of the municipality, [or (3)] (D) the death or serious illness of the assessor during the conduct of a revaluation, which results in a delay of its implementation, or (E) an agreement entered into pursuant to subdivision (3) of this subsection. No more than one waiver shall be granted pursuant to subparagraph (E) of this subdivision.

(3) If a municipality is unable to implement a revaluation in the assessment year as required by this section for any reason other than for reasonable cause as described in subparagraphs (A) to (D), inclusive, of subdivision (2) of this subsection, the chief executive officer of the municipality may submit a written request to the Secretary of the Office of Policy and Management to enter into an agreement with the Office of Policy and Management with respect to the implementation of such revaluation. The municipality may request such agreement no earlier than six months prior to and no later than the October first assessment date which the required revaluation would have affected. The secretary may enter into no more than one agreement with any municipality and only if such municipality has shown good faith efforts toward implementing such revaluation. Such agreement shall establish conditions to be met by the municipality in order to qualify for a waiver of the penalty imposed under subdivision (1) of this subsection. Such conditions shall include, but not be limited to, (A) dates upon which specific aspects of the revaluation shall be completed, (B) an agreement by the municipality to implement, maintain or update a computer system for the purpose of conducting future revaluations, (C) an agreement that the municipality will not seek an authorization from the Office of Policy and Management to assess all real estate according to the list in effect immediately prior to the list to which such revaluation applies pursuant to subsection (b) of section 12-117, (D) a date specific by which a contract must be entered into for conducting the next statutorily required revaluation, and (E) quarterly updates to the secretary on the progress of the revaluation. The dates of such conditions may extend beyond the date of the implementation of the revaluation for which the agreement is requested. Notwithstanding a waiver issued under subdivision (2) of this subsection, the secretary may, upon a review of the totality of the circumstances, cause the municipality to forfeit a percentage of the total amount of state grants-in-aid determined by statutory formula which are included in the estimate prepared by the Secretary of the Office of Policy and Management pursuant to section 4-71b. If one condition of the agreement is not met by a municipality, the amount forfeited shall be one per cent of the total amount of such state grants-in-aid as of the date the condition was not met. If more than one condition of the agreement is not met by a municipality, the amount forfeited may be up to ten per cent of the such state grants-in-aid as determined by the secretary.

Sec. 19. Subsection (g) of section 12-129n of the general statutes is repealed and the following is substituted in lieu thereof:

(g) (1) Any municipality establishing a program of property tax relief under this section shall make persons eligible for such relief if they qualify in accordance with age and income pursuant to subsection (a) of this section and are unit owners of a cooperative.

(2) The amount of annual property tax relief in accordance with this subsection to any such person shall be determined in relation to an assumed amount of property tax liability applicable to the assessed value for the dwelling unit which such person owns and occupies, as determined by the assessor in the municipality in which the cooperative is situated. For purposes of this section the assessor shall determine the assumed amount of property tax liability applicable to the assessed value for the dwelling unit of each such person who is otherwise eligible under this subsection, but such determination shall not constitute a tax bill for purposes of property taxation of such cooperative or any individual dwelling unit thereof. Annually, not later than the first day of June, the assessor in such municipality, upon receipt of an application for such relief, shall determine, with respect to the assessment list in such municipality for the assessment year commencing October first immediately preceding, the portion of the assessed value of the entire cooperative, as included in such assessment list, attributable to the dwelling unit occupied by such person. The assumed property tax liability for purposes of determining the amount of the relief shall be the product of such assessed value and the mill rate in such municipality as determined for purposes of property tax imposed on said assessment list for the assessment year commencing October first immediately preceding. The amount of relief to which such person shall be entitled for such assessment year shall be equivalent to the amount of tax reduction for which such person would qualify, considering such assumed property tax liability to be the actual property tax applicable to such person's dwelling unit and such person as liable for the payment of such tax.

Sec. 20. This act shall take effect from its passage, and shall be applicable to assessment years of municipalities commencing on and after October 1, 1999.

Approved June 23, 1999

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