[Adopted 11-13-2001, effective 12-1-2001]
This article is enacted pursuant to C.G.S. § 12-129n,
as amended.
As used in this article, the following terms
shall have the meanings indicated:
Property, which is the principal residence and domicile of
the eligible taxpayer, the lot upon which the residence is located,
and the appurtenant outbuildings. Benefits will be pro rated for partial
ownership and for occupancy in a dwelling of up to two dwelling units.
Any resident taxpayer owning and occupying as his or her
principal residence real property in the Town of Haddam who is (1)
65 years of age and over, or whose spouse, living with him or her,
is 62 years of age or over or (2) under age 65 and eligible in accordance
with applicable federal regulations to receive permanent total disability
benefits under Social Security or who has not been engaged in employment
covered by Social Security and accordingly has not qualified for benefits
thereunder, but has become qualified for permanent total disability
benefits under any federal, state or local government retirement or
disability plan, in which requirements with respect to qualifications
for such permanent total disability benefits are comparable to such
requirements under Social Security, provided the resident taxpayer
or his or her spouse under Subdivision (1) or (2) has been a taxpayer
of Haddam for 20 years immediately preceding receipt of tax benefits
under this article, and providing that the applicant meets the requirements
established herein with respect to maximum allowable qualifying income
during the calendar year preceding the year in which application is
made for the tax relief provided in this article.
The maximum qualifying income which a taxpayer and/or taxpayer's
spouse may receive and still be eligible for relief under this article.
The maximum allowable income for tax relief under this article is
$50,000 per year. Said amount may be amended annually or as recommended
by the Board of Finance and adopted by the Board of Selectmen.
All monies received, unless specifically exempted, and includes
wages, bonuses, commissions, fees, self-employment income, social
security, payment for jury duty, dividends, interest, and annuities,
IRA income that is taxable, interest or proceeds from gifts, lottery
winnings, rental income, pensions, including veterans' and railroad
retirement, severance or unemployment compensation, workers' compensation,
alimony, and all other sources of income as defined by the Office
of Policy and Management. Specifically excluded are Social Security
payments specifically for a dependent person, casualty loss reimbursement
by insurance companies, gifts, bequests or inheritance (although interest
and other income produced by such gifts, bequest or inheritance must
be included), grants for disaster relief, life insurance proceeds
and all other exempt sources or income as defined by the Office of
Policy and Management. Evidence of such income shall be required,
and a signed affidavit shall be submitted to the Assessor when an
application for benefits under this article is filed. The tax relief
provided for in this article shall be available to eligible taxpayers
and their eligible spouses whose total adjusted gross income for purposes
of federal income tax, plus any other income not included in such
adjusted gross income (the total of which shall be defined as "qualifying
income"), does not exceed the limits set forth below.
A.
Any eligible taxpayer may apply for and receive either
a property tax abatement or property tax deferral for an eligible
property upon completion of the application form provided by the Tax
Assessor. The applicant may only choose one of the tax relief options.
Application for tax relief (either abatement or deferral) shall be
made between February 1 and May 15. Applications must be refilled
and approved every year for tax deferral and every two years for tax
abatement.
B.
All eligible taxpayers or their spouses, who may qualify
for tax relief under C.G.S. §§ 12-129b to 12-129d,
inclusive, and/or C.G.S. § 12-170aa, must apply for and
be included, if qualified, in such program or programs as a condition
precedent to qualifying for and receiving benefits under this article.
C.
At no time shall property tax relief be granted if
there are past-due taxes on any property of the taxpayer, including
motor vehicles and personal property.
D.
At no time shall property tax relief be granted if
taxes abated or deferred in the previous years, in addition to the
then-current year, will equal or exceed the then-assessed value of
the subject property.
E.
The total abatement of property tax revenue, based
upon an estimate in any tax year by the Board of Finance, which may
be granted in such tax year pursuant to the provisions of this article
shall not exceed an amount equal to 10% of the total real property
tax assessed in the preceding tax year.
F.
No such property tax relief, together with any relief
received by any eligible taxpayer under the provisions of C.G.S. §§ 12-129b
to 12-129d, inclusive, 12-129h and 12-170aa, shall exceed, in the
aggregate, the total amount of the tax which would, except for said
statutory section, be laid against the eligible taxpayer.
G.
The Town will lien the subject property for the amount
of any deferral granted, and may establish a lien on such property
in the amount of the relief granted. In the event the total amount
of property tax relief with respect to any eligible taxpayer as provided
by this article, when combined with any tax relief for which such
eligible taxpayer may be eligible in accordance with C.G.S. §§ 12-129b
to 12-129d, inclusive, or 12-170aa, exceeds in the aggregate 75% of
the property tax for which such taxpayer would be liable but for the
benefits under this article and any of the sections mentioned above
in this section, the Town will establish a lien on such property in
the amount of the total tax relief granted. Such lien shall have priority
in the settlement of such person's estate.
H.
If a qualifying taxpayer owns the eligible property
jointly with a nonspouse, tax relief under this article will be proportionate
to the taxpayer's interest in the property.
I.
If property is held in trust for a person who would
otherwise qualify for tax relief under this article, the tax relief
may still be granted if the eligible taxpayer is the primary beneficiary
of the trust and otherwise meets all the other requirements under
this article. Under these circumstances, a true copy of the trust
instrument shall accompany the applications for relief. The trust
instrument shall be reviewed and approved by Town Counsel prior to
approval of the application by the Assessor.
J.
The total amount of tax relief available under this
article, when combined with such property tax relief for which such
taxpayer may be eligible in accordance with C.G.S. §§ 12-129b
to 12-129d, inclusive, or C.G.S. § 12-170aa, shall not exceed,
in aggregate, 75% of the property tax for which such taxpayer would
be liable but for the benefits under this article and the state tax
relief programs mentioned above in this section. If the aggregate
amount of such state and local benefits exceeds said 75% of taxes
otherwise due, then the amount of the benefit available under this
article shall be reduced so as to be equal to the difference between
the abatement afforded by such state programs and 75% of the taxes
laid against the taxpayer for such real property. If benefits received
under state programs exceed said 75% of the total taxes otherwise
due, no tax benefit shall be available under this article.
K.
This article shall be interpreted and applied in a
manner that complements and is consistent with existing state tax
relief programs. The policies and interpretations adopted by the Office
of Policy and Management in construing state tax relief programs shall
be utilized in interpreting and applying the provision of this article.
L.
This program shall be funded as needed by the annual
budget.
M.
Approved applications will be recorded by the Tax
Collector on the land records.
A.
If the Tax Assessor approves the property tax deferral
application, 50% of the property taxes shall be deferred annually.
B.
If the Tax Assessor approves the property tax abatement
application, an abatement of $500 for a single eligible taxpayer and
$750 for married eligible taxpayers will occur.
Any benefits accruing pursuant to this article
under the tax abatement program shall cease immediately upon the death
of the eligible taxpayer, provided the eligible taxpayer's spouse
does not qualify for relief under this article, and shall be prorated
for the year in which the taxpayer dies. If the taxpayer is utilizing
the tax deferral program, upon the death of the eligible taxpayer,
provided the eligible taxpayer's spouse does not qualify for relief
under this article, interest at the statutory rate shall be assessed
from the date of death of the eligible taxpayer, to continue in effect
until the property is transferred.
The penalty for filing an application containing
any false statements of any kind shall be the refund by the taxpayer
of all credits in property taxes, together with interest at the rate
of 18% per annum.
Any person aggrieved by the action of the Assessor
in determining the amount of relief or in disapproving any such application
under this article may appeal to the Board of Selectmen, in writing,
within 10 days after the date of the written notification of the Assessor
on such application. The Board of Selectmen shall promptly consider
such appeal and may grant or deny the relief requested, or make such
other modifications necessary to comply with this article.
