2023 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 for certain property.

(a) For the purposes of this section:
(1) “College and hospital property” means all real property described in subsection (a) of section 12-20a;
(2) “District” has the same meaning as provided in section 7-324;
(3) “Equalized net grand list per capita” means the grand list of a municipality upon which taxes were levied for the general expenses of such municipality three years prior to the fiscal year in which a grant under this section is to be paid, equalized in accordance with the provisions of section 10-261a and divided by the total population of such municipality;
(4) “Municipality” means any town, city, borough, consolidated town and city and consolidated town and borough;
(5) “State, municipal or tribal property” means all real property described in subsection (a) of section 12-19a;
(6) “Tier one municipality” means a municipality with an equalized net grand list per capita of less than one hundred thousand dollars;
(7) “Tier two municipality” means a municipality with an equalized net grand list per capita of one hundred thousand dollars to two hundred thousand dollars; and
(8) “Tier three municipality” means a municipality with an equalized net grand list per capita of greater than two hundred thousand dollars.
(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 and district 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 or district for state, municipal or tribal property under the provisions of this section in the fiscal year ending June 30, 2022, 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) One hundred per cent of the property taxes that would have been paid with respect to the property and facilities owned by the Connecticut Port Authority;
(E) 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;
(F) 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;
(G) 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;
(H) One hundred 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
(I) Forty-five per cent of the property taxes that would have been paid with respect to all other state-owned real property.
(2) 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.
(c) The Secretary of the Office of Policy and Management shall list municipalities, boroughs and districts based on the equalized net grand list per capita. Boroughs and districts shall have the same equalized net grand list per capita 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, 2022, and each fiscal year thereafter:
(1) The total amount of the grants paid to a municipality or district pursuant to the provisions of this subsection shall not be lower than the total amount of the payment in lieu of taxes grants received by such municipality or district for the fiscal year ending June 30, 2021.
(2) 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 for a fiscal year:
(A) Each tier one municipality shall receive fifty per cent of the grant amount payable to such municipality as calculated under subsection (b) of this section;
(B) Each tier two municipality shall receive forty per cent of the grant amount payable to such municipality as calculated under subsection (b) of this section; and
(C) Each tier three municipality shall receive thirty per cent of the grant amount payable to such municipality as calculated under subsection (b) of this section.
(3) Each municipality designated as an alliance district pursuant to section 10-262u or in which more than fifty per cent of the property is state-owned real property shall be classified as a tier one municipality.
(4) Each district shall receive the same percentage of the grant amount payable to the municipality in which it is located.
(5) (A) 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, but such appropriated amount exceeds the amount required for grants payable to each municipality and district in accordance with the provisions of subdivisions (1) to (4), inclusive, of this subsection, the amount of the grant payable to each municipality and district shall be increased proportionately.
(B) If the total of grants payable to each municipality and district in accordance with the provisions of subdivisions (1) to (4), inclusive, of this subsection exceeds the amount appropriated for the purposes of said subdivisions, the amount of the grant payable to each municipality and district shall be reduced proportionately, except that no grant shall be reduced below the amount set forth in subdivision (1) of this subsection.
(e) Notwithstanding the provisions of subsections (a) to (d), inclusive, of this section:
(1) 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;
(2) 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; and
(3) The city of Bridgeport shall be due five million dollars, on or before the thirtieth day of September, annually, which amount shall be in addition to the amount due such city pursuant to the provisions of subsections (b) or (d) of this section.
(f) For purposes of this section, any real property that 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 that is free from taxation pursuant to the provisions of section 10a-259 shall be deemed to be state-owned real property.
(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; P.A. 21-3, S. 5; June Sp. Sess. P.A. 21-2, S. 445.)
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; P.A. 21-3 substantially revised section re calculation of payment of grants in lieu of taxes when total of grants payable under Subsec. (b) exceeds amount appropriated for a fiscal year, effective July 1, 2021; June Sp. Sess. P.A. 21-2 amended Subsec. (b) by adding references to district, and replacing “June 30, 2017” with “June 30, 2022”, adding new Subpara. (D) re property and facilities owned by Connecticut Port Authority, redesignating existing Subparas. (D) to (H) as Subparas. (E) to (I) and replacing “Forty-five” with “One hundred” in redesignated Subdiv. (1)(H), amended Subsec. (d) by replacing references to amount of grant paid with references to total amount of grants paid in Subdiv. (1) and making a technical change in Subdiv. (2), and amended Subsec. (e)(3) by deleting Subpara. (A) re payment from annual appropriation and Subpara. (B) designator, effective July 1, 2021.