Though Gov. Dannel P. Malloy that would have allowed Farmington and four other municipalities to delay implementation of real estate revaluation for one year, he has come up with his own plan to shield taxpayers from the full impact of changing property values. The plan was approved by the House and Senate just before midnight Tuesday, according to the Connecticut General Assembly website.
The bill, which contains various provisions, was introduced by Sen. Donald E. Williams and Rep. Chris Donovan. The section pertaining to real estate revaluations would allow municipalities to phase in new property values for up to five years.
According to Malloy, the initiative would allow towns and cities to “responsibly administer revaluations in a way that blunts the negative impact to residents,” he said in a press release.
“This initiative does two things: it helps local taxpayers and allows municipalities the flexibility they need to blunt the negative impact revaluation sometimes carries,” Malloy said. “While we have seen improvement in our overall economy, we must continually look for ways to mitigate the impact of the recession on Connecticut residents. We know that there are properties in our state that have not yet rebounded from the collapse of the real estate market. As a former Mayor, I am well aware of the havoc this situation can create for local governments. After today, we’ll have a fair and reliable process in place that will let local executives navigate these difficult circumstances.”
Farmington Town Council Chairman Jeff Hogan said Tuesday he would reserve comment on the plan until he had gotten a more complete understanding of its implications.
In vetoing House Bill 5424, co-sponsored by Farmington Rep. Bill Wadsworth, Malloy said he objected to the legislation only allowing five municipalities to defer revaluation, while all 169 cities and towns are suffering from the financial climate.
Text from the measure, included in sections 168-170 of SB 501, follows:
"A town implementing a revaluation of all real property may phase in a real property assessment increase or decrease, or a portion of such increase or decrease resulting from such revaluation, by requiring the assessor to gradually increase or decrease the assessment or the rate of assessment applicable to such property in the assessment year preceding that in which the revaluation is implemented, in accordance with one of the methods set forth in subsection (b) or (c) of this section. The legislative body of the town shall approve the decision to provide for such phase-in, the method by which it is accomplished and its term, provided the number of assessment years over which such gradual increases or decreases are reflected shall not exceed five assessment years, including the assessment year for which the revaluation is effective. If a town chooses to phase in a portion of the increase or decrease in the assessment of each parcel of real property resulting from said revaluation, said legislative body shall establish a factor, which shall be not less than twenty-five per cent, and shall apply such factor to such increases or decreases for all parcels of real property, regardless of property classification. A town choosing to phase in a portion of assessment increase or decrease shall multiply such factor by the total assessment increase or decrease for each such parcel to determine the amount of such increase or decrease that shall not be subject to the phase-in. The assessment increase or decrease for each parcel that shall be subject to the gradual increases or decreases in amounts or rates of assessment, as provided in subsection (b) or (c) of this section, shall be (A) the difference between the result of said multiplication and the total assessment increase or decrease for any such parcel, or (B) (i) in the case of an increase, the result derived when such factor is subtracted from the actual percentage by which the assessment of each such parcel increased as a result of such revaluation, over the assessment of such parcel in the preceding assessment year and said result is multiplied by such parcel's total assessment increase, or (ii) in the case of a decrease, the result derived when the assessment of such parcel in the preceding assessment year, over a number derived by when such factor is subtracted from the actual percentage by which the assessment of each parcel decreased as a result of such revaluation and said result is multiplied by such parcel's total assessment decrease."
See full text here: http://cga.ct.gov/2012/TOB/S/2012SB-00501-R00-SB.htm