[Adopted by the STM 10-30-2006]
In an effort to attract, retain and expand businesses, the Town
of Bethany has adopted this tax incentive policy in accordance with
Connecticut General Statutes §§ 12-65b and 12-65h (as
amended). This policy establishes a tax incentive program for the
Town and allows the Town to enter into written agreements with the
owners and/or lessees of certain real property located within the
Town of Bethany in order to fix tax assessments of real and/or personal
property in the manner set forth by this policy.
In accordance with the provisions of C.G.S. § 12-65b,
the Board of Selectmen may enter into written tax agreements with
owners and/or lessees of real and/or personal property if the improvements
are for one of the following:
A.
Manufacturing use.
B.
Office use.
C.
Retail use.
D.
Storage, warehouse or distribution use.
E.
Information technology.
F.
Only legally existing used businesses relocating to the Town, new business development and business expansion listed in Subsections A, B, C, D and E above and located within a district zoned for such purposes by the Planning and Zoning Commission are eligible to participate in a tax incentive program under this policy. Home occupations (as defined by the Bethany Zoning Regulations) and all other land uses are not eligible to participate in a tax incentive program under this policy.
G.
Only manufacturing facilities, as defined in Subdivision (72) of
C.G.S. § 12-81, are eligible to participate in the benefits
authorized under C.G.S. § 12-65h.
The Board of Selectmen may enter into a tax agreement with any
party owning or proposing to acquire an interest in real property
in the Town of Bethany fixing the assessment of the real property
which is the subject of the agreement and all improvements thereon
or therein and to be constructed thereon or therein, subject to the
cost of the project improvements exceeding the following thresholds:
|
Tax Abate Schedule Under C.G.S. § 12-65b
| ||
|---|---|---|
|
Cost of Improvements
|
Abatement
|
Term
|
|
$5,000,000+
|
Up to 50% of increased assessment
|
Up to 7 years
|
|
$3,000,000+
|
Up to 50% of increased assessment
|
Up to 5 years
|
|
$500,000+
|
Up to 50% of increased assessment
|
Up to 2 years
|
|
$25,000+
|
Up to 50% of increased assessment
|
Up to 3 years
|
|
Note: This table lists the minimum value of an improvement that
qualifies a project for an abatement, the maximum abatement amount
and the maximum abatement period. The Board of Selectmen shall determine
the specific abatement for each project based upon the benefits to
the Town.
|
|
Tax Abatement Schedule Under C.G.S. § 12-65h
(Manufacturing Facility)
| ||
|---|---|---|
|
Increase In Assessed Value Personal Property
|
Abatement
|
Term
|
|
$3,000,000
|
Up to 50%
|
Not more than 7 years
|
|
$500,000+
|
Up to 50%
|
Not more than 2 years
|
|
$25,000+
|
Not more than 30%
|
Not more than 3 years
|
A.
The Board of Selectmen may enter into a tax agreement under this
policy only if the agreement will:
(1)
Cause a business to locate in the Town; or
(2)
Cause a business to replace, construct, expand or remodel existing
buildings; or
(3)
Cause a business to construct new buildings; or
(4)
Cause an increase in employment opportunities; or
(5)
Cause a substantial investment in new equipment or other personal
property subject to taxation; or
(6)
Preserve existing employment opportunities.
B.
If the applicant is a tenant or if an owner is applying on behalf
of a tenant, tax benefits shall be reflected in the lease and shall
be so demonstrated to the Town. Any such lease shall be for a term
which is at least as long as the tax benefit period.
A.
Any eligible owner and/or lessee may apply under this policy in writing
to the Board of Selectmen on application forms provided by the First
Selectman's office. The applicant shall provide all required information
in sufficient detail to allow the Town to determine costs and benefits
associated with the implementation of a requested tax agreement.
B.
Upon receipt of the completed application, the Board of Selectmen
shall refer the application to the Tax Incentive Program Review Committee
(TIP), which shall consist of the Board of Finance and Assessor. The
review by the TIP shall commence at the next regularly scheduled Board
of Finance meeting. The TIP shall receive the application at said
regularly scheduled meeting. The TIP shall forward its recommendation
to the Board of Selectmen within 65 days of the receipt of the application
by the TIP. Each application shall be reviewed on a case-by-case basis
by the TIP and the Board of Selectmen.
C.
The Board of Selectmen, in its sole discretion, shall either approve, approve with modifications or conditions or deny the application within 30 days from the date of the first regularly scheduled meeting at which the recommendation from the TIP appears on the Board of Selectmen's agenda. Granting of the tax abatement shall be subject to a majority vote of the Board of Selectmen. The Board of Selectmen's decision shall be based upon the Connecticut General Statutes, the information provided in the application package, the recommendation from the Tax Incentive Program Review Committee and § 184-14 of this document.
A.
Pursuant to the Board of Selectmen's decision, the Town will enter
into a written agreement with the owner or lessee of real property,
fixing the assessment of the real or personal property for the terms
of the agreement.
B.
After approval of any such tax agreement, construction shall commence
within 12 months and shall be completed within 24 months. In the event
that construction is not commenced and/or completed within the specified
time frame, then any agreement entered into pursuant to this policy
shall immediately terminate and the full amount of the tax (including
accrued interest) that would otherwise be due shall immediately become
due and payable, unless alternative arrangements are authorized by
the Board of Selectmen.
C.
If an applicant fails to comply with the payment of taxes upon the
due date required, then any agreement entered into pursuant to this
program shall immediately terminate and the full amount of the tax,
including accrued interest that would otherwise be due, shall immediately
become due and payable.
D.
Any person or firm who or which is delinquent in any taxes, interest
or liens that are due to the Town shall be ineligible to enter into
any such tax agreement under this policy until such delinquencies
or liens are remedied.
E.
Any tax assessed and levied upon motor vehicles shall not be subject
to any such agreement pursuant to this program and shall remain due
and owing.
F.
Any applicant requesting a personal property tax incentive must commit
to remain in the Town for a period of two times the length of the
incentive that may be granted. If the taxpayer shall cease to do business
or move from the Town within such period, all taxes that would have
been due shall become due retroactive to the due date of the taxes
deferred, and any delinquencies shall carry interest as if the taxes
had not been deferred.
Any tax agreement entered into pursuant to this policy shall
not be subject to assignment, transfer or sale without the consent
of the Board of Selectmen. In the event that any such agreement is
assigned, transferred or sold without the Board of Selectmen's consent,
then the agreement shall terminate, as of the effective date of assignment,
transfer or sale and the full amount of the tax that would otherwise
be due to the Town of Bethany shall immediately become due and payable.
Nothing in this policy shall require the Board of Selectmen
to enter into a tax agreement.
This policy shall not be retroactive.
