[Adopted 10-28-1993; amended in its entirety 6-19-2008]
The following article shall be adopted by the
Town of Colchester.
The Town of Colchester (the "Town") hereby provides
real property tax relief for eligible elderly Town residents and eligible
permanently and totally disabled Town residents ("tax relief") pursuant
to C.G.S. § 12-129n, commencing with the Grand List of October
1, 2007, and thereafter, on the terms and conditions provided herein.
A.
Any person who owns real property in the Town, or who is liable for taxes on real property pursuant to C.G.S. § 12-48, and who occupies said real property as his or her principal residence, shall be entitled to tax relief, provided that such person meets the eligibility criteria of Subsection A(1)(a) and Subsection A(2) and (3) below or Subsection A(1)(b) and Subsection A(2) and (3):
(1)
Specific criteria.
(a)
Elderly criteria: Such person is 65 years of
age or over, or his/her spouse, living with him/her, is 65 years of
age or over, or is 60 years of age or over and the surviving spouse
of a taxpayer qualified under this article at the time of his or her
death; or
(b)
Disability criteria: Such person is under age
65 and eligible in accordance with applicable federal regulations
to receive permanent total disability benefits under Social Security,
or 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, including
the Railroad Retirement Act and any government-related teacher's retirement
plan, in which requirements with respect to qualifications for such
permanent total disability benefits are comparable to such requirements
under Social Security.
(2)
Such person's income does not exceed the income limitations
for the tax relief program pursuant to C.G.S. § 12-170aa,
as amended from time to time, by more than $5,000.
(3)
Such person or his or her spouse has, for one year
immediately preceding the receipt of tax relief under this article,
been a taxpayer of the Town.
B.
Notwithstanding the foregoing, no otherwise eligible
person shall be deemed ineligible for tax relief solely because said
person or his or her spouse has resided in a health care facility
for a period of up to one year. Persons who reside in such a facility
for a period longer than one year shall be ineligible for tax relief
for the period exceeding said one year.
A.
The tax relief shall be limited to the principal residence
of the taxpayer, including the dwelling, the primary lot upon which
the residence is located and any accessory buildings located upon
such lot (the "eligible property"), as determined by the Town Assessor
(the "Assessor"); provided, however, that in the case of a cooperative,
the assessor shall determine the tax relief in accordance with the
procedure set forth in C.G.S. § 12-129n(g).
B.
The taxpayer's total tax relief shall not exceed the
limitations set forth in C.G.S. § 12-129n(a).
C.
The Town's total abatement of property tax revenue,
based on an estimate in any tax year by the Colchester Board of Finance,
which may be granted in such tax year by the Town pursuant to this
article, shall be subject to the limitations of C.G.S. § 12-129n(c).
D.
With respect to each taxpayer receiving tax relief pursuant to this article, the total amount of such tax relief granted to such taxpayer over time, including interest as provided in § 129-25A hereof, shall not exceed 50% of the market value of the eligible property. In any case where title to the eligible property is recorded in the name of the taxpayer or his or her spouse and any other person or persons, such total tax relief including interest shall not exceed 50% of market value of the fractional interest of such taxpayer or spouse in the eligible property. For purposes of this section, the Assessor shall determine market values.
A.
Application for tax relief shall be made on forms
provided by the Assessor and shall be accompanied by a copy of the
applicant's most recent federal income tax return or such other documentation
of eligibility as may be required by the Assessor.
B.
The application must be filed annually with the Assessor
during the period of February 1 through August 1, inclusive.
A.
The Assessor shall compute the amount of tax relief
to which the taxpayer is entitled and advise the Town Tax Collector
thereof.
B.
The tax relief shall, in any case where title to the
eligible property is recorded in the name of the taxpayer or his or
her spouse and any other person or persons, be prorated to reflect
the fractional share of such taxpayer or spouse.
C.
The tax relief shall, in any case where the eligible
property is a multifamily dwelling, be prorated to reflect the fractional
portion of eligible property occupied by the taxpayer.
D.
If a recipient of tax relief dies or transfers, grants or otherwise conveys his or her interest in the eligible property, the tax relief previously allowed shall be disallowed to the extent of the portion of the tax year remaining following such death or transfer, except where the surviving spouse of the recipient, otherwise eligible under § 129-21A(1) hereof, acquires the interest formerly held by the recipient.
A.
The Town shall have a lien on the eligible property
as provided in C.G.S. § 12-129n(f), which lien shall include
interest on the amount of the tax relief granted at an annual rate
of 3%.
B.
This lien is not assumable.
C.
The interest rate on the amount of the tax relief granted that remains unpaid 12 months from the date the recipient of tax relief dies shall be the interest rate charged by the Town for delinquent taxes, except where the surviving spouse of the recipient, otherwise eligible under § 129-21A(1) hereof, acquires the interest formerly held by the recipient.
D.
If a recipient of tax relief shall transfer or otherwise
convey his or her entire interest in the eligible property, such recipient
shall, at the time of such transfer or conveyance, repay to the Town
the aggregate tax relief granted to such taxpayer, including interest.
If a recipient of tax relief shall transfer or otherwise convey a
portion of his or her interest in the eligible property, such recipient
shall, at the time of such partial transfer or conveyance, repay to
the Town the sum equal to the percentage interest of the transferred
or conveyed portion times the aggregate relief granted to such taxpayer,
including interest.
E.
For the purposes of this section, the transfer by
a recipient of tax relief, while retaining a life estate in the eligible
property, shall be considered a one-hundred-percent transfer of the
eligible property.
A.
The Assessor is hereby authorized to administer this
program. The Assessor may designate agents to act in the Assessor's
name in collecting applications for this program.
B.
Beginning with the Grand List year 2012 and every
five years thereafter, the Board of Selectmen shall form a local option
property tax relief task force, consisting of at least one member
of the Board of Selectmen, one member of the Board of Finance, one
member of the Town Commission on Aging and four members of the general
public to review this local option and the annual percentage rate
being charged for the interest while the taxes are deferred.
