[Adopted 12-4-2008]
In an effort to attract, retain and expand businesses,
the Town of Monroe has adopted this tax incentive policy in accordance
with Connecticut General Statutes § 12-65b. 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 and/or personal property located within the Town of Monroe
in order to fix tax assessments of real and/or personal property in
the manner set forth by this policy.
A.
In accordance with the provisions of Connecticut General
Statutes § 12-65b, the Town Council may enter into written
tax agreements with owners and/or lessees of real and/or personal
property.
B.
Only legally existing uses, businesses relocating
to the Town, new business development and business expansion in a
commercial or industrial zone 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 Monroe Zoning
Regulations) and all other land uses are not eligible to participate
in a tax incentive program under this policy.
C.
Application for tax abatement must be made within
six months of receipt of Town of Monroe certificate of occupancy or
use of building.
D.
Consideration may be given to those applicants who
incorporate environmentally friendly ("green") improvements.
E.
Any applicant who 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.
A.
The Town Council may enter into a tax agreement with
any party owning or proposing to acquire an interest in real and/or
personal property in the Town of Monroe fixing the assessment of the
real and/or personal 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 Abatement Schedule under C.G.S. § 12-65b
| |||
|---|---|---|---|
|
Cost of Improvements
|
Abatement
|
Term
(years)
| |
|
$10 million+
|
Up to 50% of increased assessment
|
Up to 7
| |
|
$5 million+
|
Up to 30% of increased assessment
|
Up to 7
| |
|
$3 million+
|
Up to 20% of increased assessment
|
5 to 7
| |
|
$500,000+
|
Up to 30% of increased assessment
|
Up to 3
| |
|
$100,000+
|
Up to 20% of increased assessment
|
Up to 3
| |
|
$25,000+
|
Up to 50% of increased assessment
|
Up to 3
| |
B.
This table lists the minimum value of an improvement
that qualifies a project for abatement, the maximum abatement amount
and the maximum abatement period. The Town Council shall determine
the specific abatement for each project based upon the benefits to
the Town.
Any eligible owner and/or lessee may apply under
this policy in writing to the Economic Development Coordinator on
application forms provided by the Economic Development 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.
A.
Upon receipt of the completed application, the Economic
Development Coordinator shall refer the application to the Tax Incentive
Program Review Committee members as follows: the First Selectman,
Finance Director, Assessor, and Economic Development Commission designee.
Each application shall be reviewed for appropriateness. After thorough
review and within 30 days of receipt of the application, the recommendation,
along with a written analysis, shall be referred to the Town Council
and its Legislative and Administrative Committee.
B.
The Town Council, in its sole discretion and after
having held at least one public hearing, shall approve, approve with
modifications or conditions or deny the application within 60 days
from the date of the first regularly scheduled meeting at which the
referral appears on the Council's agenda. Granting of the tax abatement
shall be subject to a majority vote of the Town Council. The Council's
decision shall be based upon the Connecticut General Statutes, the
information provided in the application package and the recommendation
from the Tax Incentive Program Review Committee.
A.
Pursuant to the Council's decision the Town will enter
into a written agreement with the owner or lessee of real and/or personal
property fixing the assessment of the real and/or personal property
for the terms of the agreement.
B.
After approval of any such tax agreement, construction
or acquisition shall commence within 12 months and shall be completed
within 24 months unless the projected time frame to complete the project
is stated to be more than 24 months at the time of application. 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 Town Council.
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 in violation of any Town of Monroe
permit is subject to termination of abatement.
E.
All agreements shall contain a provision that any
applicant granted a tax abatement shall repay the Town of Monroe the
dollar amount abated, plus interest, if the business leaves Monroe
before the time taxes are abated.
F.
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.
Any tax agreement entered into pursuant to this
policy shall not be subject to assignment, transfer or sale.
This policy shall not be retroactive.
