CT HB06107

Municipalities may vote to subject property of private nonprofit colleges, nonprofit general hospitals, and free-standing chronic disease or urgent care facilities to taxation, effective October 1, 2011.

Taxable property of these institutions is assessed at a graduated rate starting at 10% of true value in year one, increasing by 10% annually until reaching 50% by year five.

State grants in lieu of taxes are split between the municipality and the institution on a graduated schedule, with the municipality receiving 80% in year one, declining to 0% by year five when the institution receives 100%.

Municipalities that assess such property must continue to submit valuations to the secretary as required under existing law.

Purpose is to generate additional municipal revenue and reduce state reliance on grants in lieu of taxes for property tax revenue lost from tax-exempt institutions.