CT SB01156

Municipalities where section 12-62n of the general statutes is effective may establish a property tax surcharge of up to 7.5% on all property except apartment and residential property, effective for assessment years beginning October 1, 2011.

"Residential property" is defined as buildings with four or fewer dwelling units, the land they occupy, and accessory structures; "apartment property" is defined as buildings with five or more dwelling units and related structures.

Municipalities that adopt the property tax surcharge must limit increases in general budget expenditures to either 2% or the rate of inflation, whichever is less, for fiscal years beginning July 1, 2011.

Exceptions to the spending cap exclude expenditures for debt service and, in their first year, expenditures mandated by court orders or arising from increases in state grants.

Municipalities may exceed the spending cap limit if the increase is approved by referendum.