2020 Connecticut General Statutes
Title 12 - Taxation
Chapter 201 - State and Local Revenue Services. Department of Revenue Services
Section 12-18b - Grants in lieu of taxes on state-owned property, land held in trust by the state for an Indian tribe, municipally owned airports and real property of private colleges, general hospitals, chronic disease hospitals and certain urgent care facilities.

(a) For purposes of this section:

(1) “College and hospital property” means all real property described in subsection (a) of section 12-20a;

(2) “District” means any district, as defined in section 7-324;

(3) “Qualified college and hospital property” means college and hospital property described in subparagraph (B) of subdivision (2) of subsection (b) of this section;

(4) “Qualified state, municipal or tribal property” means state, municipal or tribal property described in subparagraphs (A) to (G), inclusive, of subdivision (1) of subsection (b) of this section;

(5) “Municipality” means any town, city, borough, consolidated town and city and consolidated town and borough;

(6) “Select college and hospital property” means college and hospital property described in subparagraph (A) of subdivision (2) of subsection (b) of this section;

(7) “Select payment in lieu of taxes account” means the account established pursuant to section 12-18c;

(8) “Select state property” means state property described in subparagraph (H) of subdivision (1) of subsection (b) of this section;

(9) “State, municipal or tribal property” means all real property described in subsection (a) of section 12-19a;

(10) “Tier one districts or municipalities” means the ten districts or municipalities with the highest percentage of tax exempt property on the list of municipalities prepared by the Secretary of the Office of Policy and Management pursuant to subsection (c) of this section and having a mill rate of twenty-five mills or more;

(11) “Tier two districts or municipalities” means the next twenty-five districts or municipalities after tier one districts or municipalities with the highest percentage of tax exempt property on the list of municipalities prepared by the Secretary of the Office of Policy and Management pursuant to subsection (c) of this section and having a mill rate of twenty-five mills or more;

(12) “Tier three districts or municipalities” means all districts and municipalities not included in tier one districts or municipalities or tier two districts or municipalities;

(13) “Tier one municipalities” means the ten municipalities with the highest percentage of tax exempt property on the list of municipalities prepared by the Secretary of the Office of Policy and Management pursuant to subsection (c) of this section and having a mill rate of twenty-five mills or more;

(14) “Tier two municipalities” means the next twenty-five municipalities after tier one municipalities with the highest percentage of tax exempt property on the list of municipalities prepared by the Secretary of the Office of Policy and Management pursuant to subsection (c) of this section and having a mill rate of twenty-five mills or more;

(15) “Tier three municipalities” means all municipalities not included in tier one municipalities or tier two municipalities; and

(16) “Mill rate” means the mill rate on real property and personal property other than motor vehicles.

(b) Notwithstanding the provisions of sections 12-19a and 12-20a, all funds appropriated for state grants in lieu of taxes shall be payable to municipalities and districts pursuant to the provisions of this section. 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 municipality and district in this state wherein college and hospital property is located and to each municipality in this state wherein state, municipal or tribal property, 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.

(1) The grant payable to any municipality for state, municipal or tribal property under the provisions of this section in the fiscal year ending June 30, 2017, and each fiscal year thereafter shall be equal to the total of:

(A) One hundred per cent of the property taxes that would have been paid with respect to any facility designated by the Commissioner of Correction, on or before August first of each year, to be a correctional facility administered under the auspices of the Department of Correction or a juvenile detention center under direction of the Department of Children and Families that was used for incarcerative purposes during the preceding fiscal year. If a list containing the name and location of such designated facilities and information concerning their use for purposes of incarceration during the preceding fiscal year is not available from the Secretary of the State on August first of any year, the Commissioner of Correction shall, on said date, certify to the Secretary of the Office of Policy and Management a list containing such information;

(B) One hundred per cent of the property taxes that would have been paid with respect to that portion of the John Dempsey Hospital located at The University of Connecticut Health Center in Farmington that is used as a permanent medical ward for prisoners under the custody of the Department of Correction. Nothing in this section shall be construed as designating any portion of The University of Connecticut Health Center John Dempsey Hospital as a correctional facility;

(C) One hundred per cent of the property taxes that would have been paid on any land designated within the 1983 Settlement boundary and taken into trust by the federal government for the Mashantucket Pequot Tribal Nation on or after June 8, 1999;

(D) Subject to the provisions of subsection (c) of section 12-19a, sixty-five per cent of the property taxes that would have been paid with respect to the buildings and grounds comprising Connecticut Valley Hospital and Whiting Forensic Hospital in Middletown;

(E) With respect to any municipality in which more than fifty per cent of the property is state-owned real property, one hundred per cent of the property taxes that would have been paid with respect to such state-owned property;

(F) Forty-five per cent of the property taxes that would have been paid with respect to all municipally owned airports; except for the exemption applicable to such property, on the assessment list in such municipality for the assessment date two years prior to the commencement of the state fiscal year in which such grant is payable. The grant provided pursuant to this section for any municipally owned airport shall be paid to any municipality in which the airport is located, except that the grant applicable to Sikorsky Airport shall be paid one-half to the town of Stratford and one-half to the city of Bridgeport;

(G) Forty-five per cent of the property taxes that would have been paid with respect to any land designated within the 1983 Settlement boundary and taken into trust by the federal government for the Mashantucket Pequot Tribal Nation prior to June 8, 1999, or taken into trust by the federal government for the Mohegan Tribe of Indians of Connecticut, provided the real property subject to this subparagraph shall be the land only, and shall not include the assessed value of any structures, buildings or other improvements on such land; and

(H) Forty-five per cent of the property taxes that would have been paid with respect to all other state-owned real property.

(2) (A) The grant payable to any municipality or district for college and hospital property under the provisions of this section in the fiscal year ending June 30, 2017, and each fiscal year thereafter shall be equal to the total of seventy-seven per cent of the property taxes that, except for any exemption applicable to any college and hospital property under the provisions of section 12-81, would have been paid with respect to college and hospital property on the assessment list in such municipality or district for the assessment date two years prior to the commencement of the state fiscal year in which such grant is payable; and

(B) Notwithstanding the provisions of subparagraph (A) of this subdivision, the grant payable to any municipality or district with respect to a campus of the United States Department of Veterans Affairs Connecticut Healthcare Systems shall be one hundred per cent.

(c) The Secretary of the Office of Policy and Management shall list municipalities, boroughs and districts based on the percentage of real property on the 2012 grand list of each municipality that is exempt from property tax under any provision of the general statutes other than that property described in subparagraph (A) of subdivision (1) of subsection (b) of this section. Boroughs and districts shall have the same ranking as the town, city, consolidated town and city or consolidated town and borough in which such borough or district is located.

(d) For the fiscal year ending June 30, 2017, if the total of grants payable to each municipality and district in accordance with the provisions of subsection (b) of this section exceeds the amount appropriated for the purposes of said subsection (b) for said fiscal year: (1) The amount of the grant payable to each municipality for state, municipal or tribal property and to each municipality or district for college and hospital property shall be reduced proportionately, provided the percentage of the property taxes payable to a municipality or district with respect to such property shall not be lower than the percentage paid to the municipality or district for such property for the fiscal year ending June 30, 2015; and (2) certain municipalities and districts shall receive an additional payment in lieu of taxes grant payable from the Municipal Revenue Sharing Fund established in section 4-66p. The total amount of the grant payment is as follows:

(e) (1) For the fiscal years ending June 30, 2018, and June 30, 2019, if the total of grants payable to each municipality and district in accordance with the provisions of subsection (b) of this section exceeds the amount appropriated for the purposes of said subsection (b) for said fiscal years: (A) The amount of the grant payable to each municipality for state, municipal or tribal property and to each municipality or district for college and hospital property shall be reduced proportionately, provided the percentage of the property taxes payable to a municipality or district with respect to such property shall not be lower than the percentage paid to the municipality or district for such property for the fiscal year ending June 30, 2015; and (B) certain municipalities and districts shall receive an additional payment in lieu of taxes grant payable from the select payment in lieu of taxes account. The total amount of the grant payment is as follows:

(2) For the fiscal year ending June 30, 2020, and each fiscal year thereafter, if the total of grants payable to each municipality and district in accordance with the provisions of subsection (b) of this section exceeds the amount appropriated for the purposes of said subsection (b) for said fiscal years:

(A) The amount of the grant payable to each municipality for qualified state, municipal or tribal property and to each municipality or district for qualified college and hospital property shall be reduced proportionately, provided the percentage of the property taxes payable to a municipality or district with respect to such property shall not be lower than the percentage paid to the municipality or district for such property for the fiscal year ending June 30, 2015;

(B) The amount of the grant payable to each municipality or district for select college and hospital property shall be reduced as follows: (i) Tier one districts or municipalities shall each receive a grant in lieu of taxes equal to forty-two per cent of the property taxes that, except for any exemption applicable to any college and hospital property under the provisions of section 12-81, would have been paid to such municipality or district with respect to select college and hospital property; (ii) tier two districts or municipalities shall each receive a grant in lieu of taxes equal to thirty-seven per cent of the property taxes that, except for any exemption applicable to any college and hospital property under the provisions of section 12-81, would have been paid to such municipality or district with respect to select college and hospital property; and (iii) tier three districts or municipalities shall each receive a grant in lieu of taxes equal to thirty-two per cent of the property taxes that, except for any exemption applicable to any college and hospital property under the provisions of section 12-81, would have been paid to such municipality or district with respect to select college and hospital property. Grants in excess of thirty-two per cent of the property taxes that, except for any exemption applicable to any college and hospital property under the provisions of section 12-81, would have been paid to tier one districts or municipalities and to tier two districts or municipalities with respect to select college and hospital property shall be payable from the select payment in lieu of taxes account; and

(C) The amount of the grant payable to each municipality for select state property shall be reduced as follows: (i) Tier one municipalities shall each receive a grant in lieu of taxes equal to thirty-two per cent of the property taxes that, except for any exemption applicable to any state property under the provisions of section 12-81, would have been paid to such municipality with respect to select state property; (ii) tier two municipalities shall each receive a grant in lieu of taxes equal to twenty-eight per cent of the property taxes that, except for any exemption applicable to any state property under the provisions of section 12-81, would have been paid to such municipality with respect to select state property; and (iii) tier three municipalities shall each receive a grant in lieu of taxes equal to twenty-four per cent of the property taxes that, except for any exemption applicable to any state property under the provisions of section 12-81, would have been paid to such municipality with respect to select state property. Grants in excess of twenty-four per cent of the property taxes that, except for any exemption applicable to any state property under the provisions of section 12-81, would have been paid to tier one municipalities and to tier two municipalities with respect to select state property shall be payable from the select payment in lieu of taxes account.

(3) If the total of grants payable to each municipality and district in accordance with the provisions of subsection (b) of this section and subdivision (2) of this subsection exceeds the amount appropriated for the purposes of said subsection and said subdivision and the amount available in the select payment in lieu of taxes account in any fiscal year, the amount of the grant payable to each municipality for state, municipal or tribal property and to each municipality or district for college and hospital property shall be reduced proportionately, provided (A) the grant payable to tier one districts or municipalities for select college and hospital property shall be ten percentage points more than the grant payable to tier three districts or municipalities for such property, (B) the grant payable to tier two districts or municipalities for select college and hospital property shall be five percentage points more than the grant payable to tier three districts or municipalities for such property, (C) the grant payable to tier one municipalities for select state property shall be eight percentage points more than the grant payable to tier three municipalities for such property, and (D) the grant payable to tier two municipalities for select state property shall be four percentage points more than the grant payable to tier three municipalities for such property. Grants to tier one municipalities or districts and grants to tier two municipalities or districts in excess of grants paid to tier three municipalities or districts pursuant to this subsection shall be payable from the select payment in lieu of taxes account. Grants to tier one municipalities and grants to tier two municipalities in excess of grants paid to tier three municipalities pursuant to this subsection shall be payable from the select payment in lieu of taxes account.

(f) Notwithstanding the provisions of subsections (a) to (d), inclusive, of this section, for any municipality receiving payments under section 15-120ss, property located in such municipality at Bradley International Airport shall not be included in the calculation of any state grant in lieu of taxes pursuant to this section.

(g) For purposes of this section, 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 section 10a-259 shall be deemed to be state-owned real property.

(h) The Office of Policy and Management shall report, in accordance with the provisions of section 11-4a, to the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding, on or before July 1, 2017, and on or before July first annually thereafter until July 1, 2020, with regard to the grants distributed in accordance with this section, and shall include in such reports any recommendations for changes in the grants.

(P.A. 15-244, S. 183; P.A. 16-146, S. 1; May Sp. Sess. P.A. 16-2, S. 43; May Sp. Sess. P.A. 16-3, S. 190; P.A. 18-86, S. 53.)

History: P.A. 15-244 effective July 1, 2016; P.A. 16-146 amended Subsec. (a) by adding Subdiv. (16) defining “mill rate”, amended Subsec. (b)(2)(A) by replacing “institution of higher education or general hospital facility” with “college and hospital property”, amended Subsec. (e) by adding “, except for any exemption applicable to any college and hospital property under the provisions of section 12-81,” in Subdiv. (1)(B), adding “, except for any exemption applicable to any state property under the provisions of section 12-81,” in Subdiv. (1)(C), and adding “and said subdivision” and replacing “that would have been paid on select college and hospital property” and “that would have been paid on select state property” with “pursuant to this subsection” in Subdiv. (2), and made technical changes, effective July 1, 2016; May Sp. Sess. P.A. 16-2 amended Subsec. (d) by replacing “select payment in lieu of taxes account” with “Municipal Revenue Sharing Fund established in section 4-66p” in provision re additional payment in lieu of taxes grant in Subdiv. (2) and reducing grant amounts, and made technical changes, effective July 1, 2016; May Sp. Sess. P.A. 16-3 amended Subsec. (e) by redesignating existing Subdiv. (1) as Subdiv. (2) and amending same by replacing “June 30, 2018” with “June 30, 2020”, adding new Subdiv. (1) re grants payable to each municipality and district for fiscal years ending June 30, 2018, and June 30, 2019, and redesignating existing Subdiv. (2) as Subdiv. (3) and amending same by making a conforming change, effective July 1, 2016; P.A. 18-86 amended Subsec. (b)(1)(D) by adding reference to Whiting Forensic Hospital, effective June 4, 2018.