Sec. 12-94f. Phase-in of one hundred per cent state payment in lieu of taxes for machinery and equipment. - Connecticut Statutes

      Sec. 12-94f. Phase-in of one hundred per cent state payment in lieu of taxes for machinery and equipment. (a) For purposes of this section, (1) "machinery", "equipment", "manufacturing", "biotechnology" and "recycling" shall have the same meaning as in subdivision (72) of section 12-81, and (2) "municipality" means each town, city, borough, consolidated town and city and consolidated town and borough and each district, as defined in section 7-324.

      (b) (1) A property tax exemption, at the percentage of valuation for purposes of assessment specified in this subdivision, shall be applicable to machinery or equipment described in this subsection and used for manufacturing or in connection with biotechnology: Twenty per cent for the assessment year commencing October 1, 2006, provided the acquisition date of such machinery or equipment is on or before October 1, 2001; forty per cent for the assessment year commencing October 1, 2007, provided the acquisition date of such machinery or equipment is on or before October 1, 2002; sixty per cent for the assessment year commencing October 1, 2008, provided the acquisition date of such machinery or equipment is on or before October 1, 2003; eighty per cent for the assessment year commencing October 1, 2009, provided the acquisition date of such machinery or equipment is on or before October 1, 2004; one hundred per cent for the assessment year commencing October 1, 2010, provided the acquisition date of such machinery or equipment is on or before October 1, 2005; and one hundred per cent for the assessment year commencing October 1, 2011, provided the acquisition date of such machinery or equipment is on or before October 1, 2006.

      (2) Machinery or equipment used in connection with recycling shall be exempt to the extent of one hundred per cent of its valuation for purposes of assessment for the assessment year commencing October 1, 2011, provided the acquisition date of such machinery or equipment is on or before September 30, 2006.

      (3) Machinery or equipment used for manufacturing or in connection with biotechnology or recycling shall be exempt to the extent of one hundred per cent of its valuation for purposes of assessment for assessment years commencing on and after October 1, 2012, provided the acquisition date of such machinery or equipment precedes, by not less than six years, the commencement date of any such assessment year.

      (c) In each fiscal year commencing on and after July 1, 2007, and on or before July 1, 2012, the state shall provide a payment in lieu of taxes to each municipality equal to the property tax revenue loss due to exemptions provided pursuant to this section. In each fiscal year commencing on and after July 1, 2013, the grant determined in accordance with section 12-94g shall replace said payment in lieu of taxes.

      (d) On or before March fifteenth, annually, commencing March 15, 2007, and ending on March 15, 2012, the assessor or board of assessors of each municipality shall certify to the Secretary of the Office of Policy and Management, on a form furnished by said secretary, the assessed value of all machinery and equipment located in such municipality that is approved for an exemption under subsection (c) of this section, for the assessment date immediately preceding. Such certification shall be accompanied by such supporting information as said secretary may require, including, but not limited to, a copy of each exemption recipient's supplement to the personal property declaration for each such assessment date. The provisions of section 12-63 shall apply to all such machinery and equipment. The secretary may modify the amount due to a municipality to reflect a correction due to a clerical omission or mistake, or to reflect a correction that is supported by documentation provided by an assessor, and shall, annually, on or before the fifteenth day of December, commencing December 15, 2007, and ending December 15, 2012, certify to the Comptroller the amount due to each municipality under the provisions of this section. The Comptroller shall draw an order on the Treasurer not later than the twenty-fourth day of December following, and the Treasurer shall pay such amount to such municipality on or before the thirty-first day of December. If said secretary modifies the amount due to a municipality subsequent to certifying payment to the Comptroller, said secretary may reflect such modification in said secretary's next certification of payment pursuant to this section, provided said secretary shall not make any modification subsequent to December 15, 2012.

      (e) All municipal valuation and enforcement procedures pursuant to chapters 203, 204 and 205 shall apply to machinery and equipment eligible for exemption under this section. A taxpayer may appeal the assessment of such machinery and equipment to the board of assessment appeals, and may appeal a determination of said board pursuant to this chapter.

      (P.A. 06-83, S. 13; 06-186, S. 85; P.A. 07-140, S. 2.)

      History: P.A. 06-83 effective July 1, 2006, and applicable to assessment years commencing on and after October 1, 2006; P.A. 06-186 amended Subsec. (c) by adding "on or prior to" in each subdiv. and amended Subsec. (d) by changing date of assessor's certification from November to March, changing date of secretary's certification to December fifteenth, changing "town" to "municipality" and making technical changes, effective July 1, 2006, and applicable to income years commencing on or after January 1, 2006 (Revisor's note: In Subsec. (d), a reference to "section 12-71" was changed editorially by the Revisors to "section 12-81" for accuracy, and the word "before" in the phrase "on or before the fifteenth day of December" was reinstated editorially by the Revisors to correct a clerical error); P.A. 07-140 amended Subsec. (a)(1) to define "manufacturing", "biotechnology" and "recycling", amended Subsec. (b) to replace former provisions with new Subdivs. (1) to (3) re applicable exemption rates, amended Subsec. (c) to replace former Subdivs. (1) to (4) with new provisions re payment in lieu of taxes and grant, amended Subsec. (d) to include procedure for certification and modification thereof ending December 15, 2012, and made technical changes in Subsec. (e), effective June 19, 2007.