OPM: Distressed Municipalities - Reimbursement of Tax Loss on Exemptions

Distressed Municipalities - Reimbursement of Tax Loss for Exemptions
 


Program Description

The Distressed Municipalities Property Tax Reimbursement Program provides a 5-year state reimbursement of a portion of the property tax loss towns sustain as a result of property tax exemptions granted to qualified manufacturing facilities located in designated municipalities. The Commissioner of the Department of Economic and Community Development (DECD) designates these municipalities.

 Manufacturing companies, as defined in Section 32-9p(d) of the Connecticut General Statutes (CGS),  may receive a tax reduction equal to 80% of the local property tax on their real estate and personal property. Service facilities, as defined in CGS Section 32-9p(e), may receive a tax reduction of from 40% to 80% of the local property tax, depending on the amount of investment made by the owner.

The Commissioner of the DECD must certify manufacturing companies, service facilities and the property they own as eligible for these tax reductions, which are available in certain towns only. Eligible are towns that have one of the following designations: Targeted Investment Community, Enterprise Corridor Zone, Contiguous Municipality Zone, Defense Plant Zone or Manufacturing Plant Zone.

 Certain manufacturing companies may receive a tax reduction equal to 50% of the local property tax on new machinery and equipment they purchase as part of a technological upgrade of a manufacturing process. The Commissioner of the DECD must certify such machinery and equipment as eligible for this tax reduction, which is available in a town designated as a Distressed Municipality , Targeted Investment Community, Enterprise Corridor Zone, Contiguous Municipality Zone, Defense Plant Zone or Manufacturing Plant Zone.

The State of Connecticut reimburses eligible towns for up to 50% of the revenue loss due to these exemptions. Reimbursements are prorated, if necessary, to the amount of the appropriation. Payments are made once a year on December 31st.

A list of designated towns is available.

The Municipal Claim Forms are available below in PDF Fillable format.

 
 Manufacturing
  M-46  
 
 Real Property
 
 Personal Property
  M-46B 
 
 Real Property
 Enterprise Zone
 
 
 Personal Property
 Enterprise Zone
 
 
 Personal Property
 Enterprise Zone/
 Tech Upgrade
 
  M-46C3
Urban Jobs Program
Annual Renewal
 
           

Tips on completing a PDF form

For Further Information, Please Contact:
Patrick Sullivan: phone (860) 418-6406 - fax (860) 418-6493 -  e-mail patrick.j.sullivan@ct.gov

Edward Bona: phone (860) 270-8252 - fax (860) 270-8157 - e-mail Edward.Bona@ct.gov Department of Economic and Community Development (DECD)


Link to:

Program Objective Statement

To provide state reimbursement to Distressed Municipalities, Targeted Investment Communities,  Enterprise Corridor Zones and other eligible municipalities for a portion of the revenue loss sustained as a result of property tax exemptions granted to eligible manufacturing and service facilities.

Eligibility

Distressed Municipalities, as defined in CGS Section 32-9p(b), Targeted Investment Communities, as defined in CGS Section 32-222(v), and Enterprise Corridor Zones as defined in CGS Section 32-70, as well as certain other municipalities that are eligible for Enterprise Zone benefits.

Grant Activity

Fiscal Year 2016 - Grant Amount: - $5.5 million: Recipients: - 34.

Key Dates

By June 25, 2015 - Distribute Claim Form and Annual Renewal Certificate forms to municipalities.

By August 1, 2015 - Receive Claim Forms back from municipalities. Also, receive Annual Renewal Certificate forms for the preceding year back from municipalities.

Between August 15 and November 30, 2015 - Perform pre-payment date Claim reviews of Claim Form M-46.

By August 31, 2015- Mail penalty notice to municipalities that did not receive a penalty waiver.

By December 15, 2015 - Prepare and certify Payment List for Comptroller.

Between December 15, 2015 and July 30, 2016 - Perform post-payment date reviews of Claim Forms M-46, as necessary.

By August 1, 2016 - Notify the chief executive officer and assessor of the substantiation or modification of the Claim for Reimbursement, pursuant to the findings of the post-payment date Claim review.

Statutory References

Connecticut General Statutes (CGS): Sections 12-81(59), (60) and (70), 12-81k and 32-9p through 32-9s, and 32-80.

Regulatory References

Regulations of Connecticut State Agencies: 32-9s-1 and 32-9s-2.

Funding Source(s)

State: General Fund (100%).

Account Number

11000 - 17016 - 72003 - 55070.

Catalogue of Federal Domestic Assistance (CFDA) Number

Not applicable.

General Statement of Process

Distributes Claim forms and Annual Renewal Certificates to assessors of designated Distressed Municipalities, Targeted Investment Communities, and Enterprise Corridor Zones. Upon receipt of Claims, conducts Claim reviews. Processes requests for penalty waivers; assesses penalties, if Claims are filed late. Modifies, approves or denies Claims and reconciles modifications with municipalities. Prepares and certifies Payment List for Comptroller.





Content Last Modified on 12/30/2015 4:12:52 PM