(b) (1) For the
purposes of this subsection, (A) "electronic data processing
equipment" means computers, printers, peripheral computer equipment,
bundled software and any computer-based equipment acting as a computer, as
defined in Section 168 of the Internal Revenue Code of 1986, or any subsequent
corresponding internal revenue code of the United States, as from time to time
amended; (B) "leased personal property" means tangible personal
property which is the subject of a written or oral lease or loan on the
assessment date, or any such property which has been so leased or loaned by the
then current owner of such property for three or more of the twelve months
preceding such assessment date; and (C) "original selling price"
means the price at which tangible personal property is most frequently sold in
the year that it was manufactured.
(2) Any municipality
may, by ordinance, adopt the provisions of this subsection to be applicable for
the assessment year commencing October first of the assessment year in which a
revaluation of all real property required pursuant to section 12-62 is
performed in such municipality, and for each assessment year thereafter. If so
adopted, the present true and actual value of tangible personal property, other
than motor vehicles, shall be determined in accordance with the provisions of
this subsection. If such property is purchased, its true and actual value shall
be established in relation to the cost of its acquisition, including
transportation and installation, and shall reflect depreciation in accordance
with the schedules set forth in subdivisions
(3) The following
schedule of depreciation shall be applicable with respect to electronic data
processing equipment:
(A) Group I: Computer
and peripheral hardware, including, but not limited to, personal computers,
workstations, terminals, storage devices, printers, scanners, computer peripherals
and networking equipment:
|
Assessment Year |
Depreciated Value As Percentage |
|
First year |
Seventy per
cent |
|
Second year |
Forty per cent |
|
Third year |
Twenty per cent |
|
Fourth year |
Ten per cent |
(B) Group II: Other
hardware, including, but not limited to, mini-frame and main-frame systems with
an acquisition cost of more than twenty-five thousand dollars.
|
Assessment Year |
Depreciated Value As Percentage |
|
First year |
Ninety per cent |
|
Second year |
Sixty per cent |
|
Third year |
Forty per cent |
|
Fourth year |
Twenty per cent |
|
Fifth year and
thereafter |
Ten per cent |
(4) The following
schedule of depreciation shall be applicable with respect to copiers, facsimile
machines, medical testing equipment, and any similar type of equipment that is
not specifically defined as electronic data processing equipment, but is considered
by the assessor to be technologically advanced:
|
Assessment Year |
Depreciated Value As Percentage |
|
First year |
Ninety-five per
cent |
|
Second year |
Eighty per cent |
|
Third year |
Sixty per cent |
|
Fourth year |
Forty per cent |
|
Fifth year and
thereafter |
Twenty per cent |
(5) The following
schedule of depreciation shall be applicable with respect to machinery and
equipment used in the manufacturing process:
|
Assessment Year |
Depreciated Value As Percentage |
|
First year |
Ninety per cent |
|
Second year |
Eighty per cent |
|
Third year |
Seventy per
cent |
|
Fourth year |
Sixty per cent |
|
Fifth year |
Fifty per cent |
|
Sixth year |
Forty per cent |
|
Seventh year |
Thirty per cent |
|
Eighth year and
thereafter |
Twenty per cent |
(6) The following
schedule of depreciation shall be applicable with respect to all tangible
personal property other than that described in subdivisions
|
Assessment Year |
Depreciated Value As Percentage |
|
First year |
Ninety-five per
cent |
|
Second year |
Ninety per cent |
|
Third year |
Eighty per cent |
|
Fourth year |
Seventy per
cent |
|
Fifth year |
Sixty per cent |
|
Sixth year |
Fifty per cent |
|
Seventh year |
Forty per cent |
|
Eighth year and
thereafter |
Thirty per cent |
(7) The present true
and actual value of leased personal property shall be determined in accordance
with the provisions of this subdivision. Such value for any assessment year
shall be established in relation to the original selling price for
self-manufactured property or acquisition cost for acquired property and shall
reflect depreciation in accordance with the schedules provided in subdivisions
(8) With respect to any
personal property which is prohibited by law from being sold, the present true
and actual value of such property shall be established with respect to such
property's original manufactured cost increased by a ratio the numerator of
which is the total proceeds from the manufacturer's salable equipment sold and
the denominator of which is the total cost of the manufacturer's salable
equipment sold. Such value shall then be depreciated in accordance with the
appropriate schedule in this subsection.
(9) The schedules of
depreciation set forth in subdivisions
(10) If the assessor
determines that the value of any item of personal property produced by the
application of the schedules set forth in this subsection does not accurately
reflect the present true and actual value of such item, the assessor shall
adjust such value to reflect the present true and actual value of such item.
(11) Nothing in this
subsection shall prevent any taxpayer from appealing any assessment made
pursuant to this subsection if such assessment does not accurately reflect the
present true and actual value of any item of such taxpayer's personal property.
(1949 Rev., S. 1747;
1963, P.A. 490, S. 9; P.A. 96-171, S. 9, 16; P.A. 99-290, S. 1, 2; P.A. 00-230,
S. 2; P.A. 02-103, S. 53.)
History: 1963 act
made special provisions for farm, forest and open space land; P.A. 96-171
replaced "boards of tax review" with "boards of assessment
appeals", effective May 31, 1996; P.A. 99-290 added new Subsec. (b) re optional
depreciation schedules for personal property and designated existing provisions
as Subsec. (a), effective
Where the assessors
adopt rule of valuation conflicting with statute, remedy is by appeal to board
of relief. 43 C. 309. If assessors adopt rule of
valuation, assessment may be reduced on appeal to conform to such rule. 63 C. 18, 322. No distinction in law between assessed and
actual value of real estate. 72 C. 372. This statute
does not apply unless there is a market. If no market, then fair value must be
otherwise ascertained. 99 C. 336. Cited.
102 C. 210; 105 C. 581. On capitalization of income,
see 119 C. 5. Where market value not ascertainable, true and
actual valuation must be determined by some other method. 122 C. 230. Property may be found to have market value in
the absence of evidence of other sales of like property in open market. 125 C. 172. History of statute; valuation
a question of fact for trier; not erroneous to
consider reproduction cost and capitalization of income as well as actual sales
prices in determining fair market value. 131 C. 575.
Methods of determining "true and actual value".
146 C. 578. Best test for determination of value is
ordinarily that of market sales. 146 C. 669. Land
residual method discussed. Id. Value of real estate must be gauged by
conditions prevailing over a period of time. Id. Capitalization of net income
method of valuation discussed. 146 C. 681. Cited. 149 C. 32. Fair market value
can be determined from figure fixed by actual sales where there are sales, in
ordinary course of business of other properties comparable in kind and
location. Where property was dam and not readily marketable,
proper to resort to other means of ascertaining value as replacement cost minus
depreciation. 149 C. 453. Although present
value of all other property is fair market value, value of "farmland"
is based on its current use without regard to neighborhood land use, even where
plaintiffs had sold adjoining land at neighborhood values. 156
C. 107. Where plaintiffs failed to apply for classification of their
farm as farmland under section 12-107c, it was properly valued at its fair
market value.
Cited.
3 CA 53, 58, 61, 65, 66. Cited.
4 CA 106, 107. Cited. 7 CA 496, 500. Cited. 33 CA 270, 271, 278. Cited. 38 CA 158, 164. Cited. 41 CA 249, 254.
Market
value. Methods for ascertaining. 1 CS 112. Valuation by owner placed in tax list not bar to
reduction by court on appeal from board of relief. 6 CS 203.
Cited. 6 CS 505. No other
method legal for assessment if there is a market value. 8 CS
540. Cost of reproduction less depreciation proper if there is no market
value. 11 CS 241. If most recent sales in same
vicinity are of property held by bank, they are not a fair criterion for market
value. 12 CS 47. Extensive
discussion of various methods of valuation. 20 CS 476.
Price index and inclusion of "factory burden" employed to determine
assessment held improper. 25 CS 37.
Sec.
12-107a. Declaration of policy. It is hereby declared (a) that it is in the public
interest to encourage the preservation of farm land, forest land and open space
land in order to maintain a readily available source of food and farm products
close to the metropolitan areas of the state, to conserve the state's natural
resources and to provide for the welfare and happiness of the inhabitants of
the state, (b) that it is in the public interest to prevent the forced
conversion of farm land, forest land and open space land to more intensive uses
as the result of economic pressures caused by the assessment thereof for
purposes of property taxation at values incompatible with their preservation as
such farm land, forest land and open space land, and (c) that the necessity in
the public interest of the enactment of the provisions of sections 12-107b to
12-107e, inclusive, is a matter of legislative determination.
(1963,
P.A. 490, S. 1; P.A. 98-157, S. 14(b), 15.)
History: P.A. 98-157
repealed Sec. 7-131c and specifically mandated deletion of reference to that
section in Sec. 12-107a, effective
Favorable tax
treatment of farm land is intended to prevent its forced conversion to more
intensive uses as the result of an assessment based on its market value rather
than its current use. 156 C. 107. Cited.
Cited.
3 CA 53, 55-58, 65, 67, 69, 71.
Loam and gravel
business defeats purpose set forth in this section and land used for "loam
farming" does not qualify as farm land. 26 CS 162.
Intention of legislature was to grant special tax treatment privileges for land
devoted for agricultural use. 28 CS 97, 101. Cited. 34 CS 52, 57, 61.
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Sec. 12-107b. Definitions. When used
in sections 12-107a to 12-107e, inclusive:
(1) The term "farm
land" means any tract or tracts of land, including woodland and wasteland,
constituting a farm unit;
(2) The term
"forest land" means any tract or tracts of land aggregating
twenty-five acres or more in area bearing tree growth that conforms to the
forest stocking, distribution and condition standards established by the State
Forester pursuant to subsection (a) of section 12-107d, and consisting of (A)
one tract of land of twenty-five or more contiguous acres, which acres may be
in contiguous municipalities, (B) two or more tracts of land aggregating
twenty-five acres or more in which no single component tract shall consist of
less than ten acres, or (C) any tract of land which is contiguous to a tract
owned by the same owner and has been classified as forest land pursuant to this
section;
(3) The term "open
space land" means any area of land, including forest land, land designated
as wetland under section 22a-30 and not excluding farm land, the preservation
or restriction of the use of which would (A) maintain and enhance the
conservation of natural or scenic resources, (B) protect natural streams or water
supply, (C) promote conservation of soils, wetlands, beaches or tidal marshes,
(D) enhance the value to the public of abutting or neighboring parks, forests,
wildlife preserves, nature reservations or sanctuaries or other open spaces,
(E) enhance public recreation opportunities, (F) preserve historic sites, or
(G) promote orderly urban or suburban development;
(4) The word
"municipality" means any town, consolidated town and city, or
consolidated town and borough;
(5) The term
"planning commission" means a planning commission created pursuant to
section 8-19;
(6) The term "plan
of conservation and development" means a plan of development, including
any amendment thereto, prepared or adopted pursuant to section 8-23;
(7) The term
"certified forester" means a practitioner certified as a forester
pursuant to section 23-65h.
(1963, P.A. 490, S.
2; 1971, P.A. 415, S. 1; P.A. 76-278, S. 1, 2; P.A. 95-335, S. 17, 26; P.A.
98-157, S. 14(b), 15; P.A. 04-115, S. 2.)
History: 1971 act
included land designated as wetland under definition of "open space
land" in Subsec. (c); P.A. 76-278 redefined
"forest land" by clarifying requirement that tract or tracts be at
least twenty-five acres and providing exception for land designations made
before July 1, 1976; P.A. 95-335 amended Subdiv. (f)
to change "plan of development" to "plan of conservation and
development", effective July 1, 1995; P.A. 98-157 repealed Sec. 7-131c and
specifically mandated deletion of reference to that section in Sec. 12-107b,
effective July 1, 1998; P.A. 04-115 redefined "forest land", defined
"certified forester" and made technical changes, effective July 1,
2004.
See Sec. 12-63 re
rule of valuation.
Farm land is any
tract of land including woodland and wasteland constituting farm unit and is to
be classified if so used without regard to per cent of owner's income derived
from it or other considerations. 156 C. 107. Cited.
Cited.
3 CA 53, 55-58, 67, 69, 71.
Subsec. (a):
Cited.
212 C. 727, 739.
Subsec. (b):
Cited.
3 CA 53, 67.
Land used for loam
and gravel business does not qualify as farm land. 26 CS 162.
Wooded area, detached from parcels of land used for farming, not within
statutory definition of farm land.
Subsec. (c):
Mere fact of private
ownership does not disqualify land from open space classification for such
ownership and use are implicit in the entire structure
of open space legislation. 168 C. 466.
Cited.
34 CS 52, 61, 62.
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Sec. 12-107c. Classification
of land as farm land. (a) An owner of land may apply for its classification as
farm land on any grand list of a municipality by filing a written application
for such classification with the assessor thereof not earlier than thirty days
before or later than thirty days after the assessment date, provided in a year
in which a revaluation of all real property in accordance with section 12-62
becomes effective such application may be filed not later than ninety days after
such assessment date. The assessor shall determine whether such land is farm
land and, if such assessor determines that it is farm land, he or she shall
classify and include it as such on the grand list. In determining whether such
land is farm land, such assessor shall take into account, among other things,
the acreage of such land, the portion thereof in actual use for farming or
agricultural operations, the productivity of such land, the gross income
derived therefrom, the nature and value of the equipment
used in connection therewith, and the extent to which the tracts comprising
such land are contiguous.
(b) An application for
classification of land as farm land shall be made upon a form prescribed by the
Commissioner of Agriculture and shall set forth a description of the land, a
general description of the use to which it is being put, a statement of the
potential liability for tax under the provisions of sections 12-504a to
12-504e, inclusive, and such other information as the assessor may require to
aid the assessor in determining whether such land qualifies for such
classification.
(c) Failure to file an
application for classification of land as farm land within the time limit
prescribed in subsection (a) and in the manner and form prescribed in
subsection (b) shall be considered a waiver of the right to such classification
on such assessment list.
(d) Any person
aggrieved by the denial of any application for the classification of land as
farm land shall have the same rights and remedies for appeal and relief as are
provided in the general statutes for taxpayers claiming to be aggrieved by the
doings of assessors or boards of assessment appeals.
(1963, P.A. 490, S.
3; P.A. 73-585, S. 3; P.A. 77-614, S. 139, 610; P.A. 79-513, S. 1, 6; 79-610,
S. 3, 47; P.A. 94-201, S. 1, 7; P.A. 95-283, S. 45, 68; P.A. 00-120, S. 2, 13;
P.A. 01-195, S. 116, 181; June 30 Sp. Sess. P.A.
03-6, S. 146(e); P.A. 04-189, S. 1.)
History: P.A. 73-585
required that application include statement of potential tax liability under Secs. 12-504a to 12-504e; P.A. 77-614 substituted
commissioner of revenue services for tax commissioner, effective January 1,
1979; P.A. 79-513 allowed filing of application within ninety days after
assessment date in years in which revaluations become effective, effective July
1, 1979, and applicable to sale of any land classified for first time as farm,
forest or open space land on or after that date; P.A. 79-610 substituted
secretary of the office of policy and management for commissioner of revenue
services, effective July 1, 1980; P.A. 94-201 amended Subsec.
(b) to change the officer responsible for
administration of that Subsec. from
the secretary of policy and management to the commissioner of agriculture, effective
See Sec. 12-63 re
rule of valuation.
When owner applied
under this section for classification of land as farm criteria to be applied is
actual use of land and it was reversible error for court to predicate
classification on its highest and best use. 156 C. 107.
Since plaintiffs had not applied for classification of their land as farm land
hereunder, town assessors correctly valued their farm at its fair market value.
Cited.
3 CA 53, 55-58, 61, 65-69, 71.
A wooded area,
detached from parcels of land used for farming, not within statutory definition
of farm land. 26 CS 162. Land used for loam and gravel
business does not qualify as farm land.
Subsec. (a):
Cited.
3 CA 53, 65-67.
Subsec. (c):
Cited.
178 C. 100, 103.
Sec. 12-504. Effect of federal transfer tax. If the federal
government imposes a federal documentary stamp tax on real estate transfers at
the same rate as, or a higher rate than, that imposed by this chapter, this
chapter shall cease to have any force and effect; but if such federal tax is
imposed at a rate less than that imposed by this chapter, this chapter shall
continue in effect but the tax imposed by this chapter shall be reduced by the
amount of such federal tax.
(1967,
P.A. 693, S. 11.)
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Sec. 12-504a.
Conveyance tax on sale of land classified as farm, forest or open space land by
record owner. (a) Any land which has been
classified by the record owner thereof as open space land pursuant to section
12-107e, if sold by him within a period of ten years from the time he first
caused such land to be so classified, shall be subject to a conveyance tax
applicable to the total sales price of such land, which tax shall be in
addition to the tax imposed under sections 12-494 to 12-504, inclusive. Said
conveyance tax shall be at the following rate: (1) Ten per cent of said total
sales price if sold within the first year following the date of such
classification; (2) nine per cent if sold within the second year following the
date of such classification; (3) eight per cent if sold within the third year
following the date of such classification; (4) seven per cent if sold within
the fourth year following the date of such classification; (5) six per cent if
sold within the fifth year following the date of such classification; (6) five
per cent if sold within the sixth year following the date of such
classification; (7) four per cent if sold within the seventh year following the
date of such classification; (8) three per cent if sold within the eighth year
following the date of such classification; (9) two per cent if sold within the
ninth year following the date of such classification; and (10) one per cent if
sold within the tenth year following the date of such classification. No
conveyance tax shall be imposed on such record owner by the provisions of
sections 12-504a to 12-504f, inclusive, following the end of the tenth year
after the date of such classification by such record owner.
(b) Any land which has
been classified by the record owner thereof as farm land pursuant to section
12-107c or as forest land pursuant to section 12-107d, if sold by him within a
period of ten years from the time he acquired title to such land or from the
time he first caused such land to be so classified, whichever is earlier, shall
be subject to a conveyance tax applicable to the total sales price of such
land, which tax shall be in addition to the tax imposed under sections 12-494
to 12-504, inclusive. Said conveyance tax shall be at the following rate: (1)
Ten per cent of said total sales price if sold within the first year of
ownership by such record owner; (2) nine per cent if sold within the second
year of ownership by such record owner; (3) eight per cent if sold within the
third year of ownership by such record owner; (4) seven per cent if sold within
the fourth year of ownership by such record owner; (5) six per cent if sold
within the fifth year of ownership by such record owner; (6) five per cent if
sold within the sixth year of ownership by such record owner; (7) four per cent
if sold within the seventh year of ownership by such record owner; (8) three
per cent if sold within the eighth year of ownership by such record owner; (9)
two per cent if sold within the ninth year of ownership by such record owner;
and (10) one per cent if sold within the tenth year of ownership by such record
owner. No conveyance tax shall be imposed by the provisions of sections 12-504a
to 12-504f, inclusive, following the end of the tenth year of ownership by such
record owner.
(1972, P.A. 152, S.
1; P.A. 74-343, S. 1, 7; P.A. 79-513, S. 5, 6; P.A. 80-483, S. 57, 186; P.A.
87-589, S. 22, 87.)
History: P.A. 74-343
added references to record owner of land and made technical change re ten-year
period during which conveyance tax applies; P.A. 79-513 amended section to make
tax applicable to only ten-year period after land first classified, deleting alternate
applicability to ten-year period after land acquired, if earlier, effective
July 1, 1979, and applicable to the sale of any land classified for the first
time as farm, forest or open space land on or after that date; P.A. 80-483
added Subsec. (b) re conveyance
tax on land classified as farm land; P.A. 87-589 made technical change in Subsec. (b), substituting reference to Sec. 12-494 for
reference to Sec. 12-294.
Cited.
173 C. 328. Cited. 176 C.
613-622. Cited. 226 C. 407, 414-416.
Cited.
4 CA 200. Cited. 18 CA 608,
612-614.
Cited.
32 CS 82. Provisions concerning length of ownership
and tax preference scheme in general do not violate the Fourteenth Amendment to
the U.S. Constitution. 34 CS 52, 60. Cited.
Subsec. (a):
Cited.
18 CA 608, 609, 611, 612.
Subsec. (b):
Cited.
226 C. 407, 414, 415, 417. Sec. 12-504d sets forth
exclusive appellate remedy for persons aggrieved by imposition of a conveyance
tax pursuant to this Subsec., but the exclusive remedy is not an obstacle to pursuit of
a collateral attack on imposition of the tax under common law. 260 C. 406.
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Sec. 12-504b. Payment
of tax; land declassified; assessment change. Said conveyance tax shall be due and payable by the particular grantor
who caused such classification to be made to the town clerk of the town in
which the property is entered upon the tax list at the time of the recording of
his deed or other instrument of conveyance. Such conveyance tax and the
revenues produced thereby shall become part of the general revenue of such
municipality. No deed or other instrument of conveyance which is subject to tax
under sections 12-504a to 12-504f, inclusive, shall be recorded by any town
clerk unless the tax imposed by said sections has been paid. Upon the recording
of such deed and the payment of the required conveyance tax such land shall be
automatically declassified and the assessor shall forthwith record with the
town clerk a certificate setting forth that such land has been declassified.
Thereafter, such land shall be assessed at its fair market value as determined
by the assessor under the provisions of section 12-63 for all other property,
until such time as a record owner may reclassify such land.
(1972,
P.A. 152, S. 2; P.A. 74-343, S. 2, 7.)
History: P.A. 74-343
clarified provision re payment of tax by grantor, stated that revenues from
conveyance tax become part of municipality's general revenues and added
provisions re declassification of land.
Cited.
176 C. 613-622. Cited. 226 C. 407, 414-416.
Cited.
32 CS 82. Cited. 34 CS 52, 56.
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