ARTICLE IX,. TAX DEFERRAL
§ 19-44. Preamble; general findings; statutory authority.
Whereas, the Connecticut General Assembly has authorized municipalities to fix assessments for construction or improvements to real property in accordance with the provisions of Section 12-65b of the Connecticut General Statutes; and whereas the deferral of assessment increases attributable to new construction or improvements will encourage economic development within the Town of New Milford and the continued economic vitality of the Town; now, therefore, in accordance with Section 12-65b of the Connecticut General Statutes, the Town does hereby provide by ordinance for the deferral of assessment increases attributable to construction or improvements to real property within the Town of New Milford as specified herein. (Ord. of 6-4-2003)
§ 19-45. Application and eligibility.
An application to the Town for a deferral of assessment increases for real property attributable to all improvements thereon or therein, and all improvements thereon or therein and to be constructed thereon or therein may be made by any party owning or proposing to acquire an interest in real property. In order to be eligible for the benefits provided by this ordinance upon receipt of a report from the Tax Assessor, the Town Council must find that:
(a)The applicant proposes to use the construction or improvements to real property for office, manufacturing, or for warehouse, storage or distribution, or information technology use.
(b)The property is not delinquent in the payment of taxes owed to the Town.
(Ord. of 6-4-2003)
§ 19-46. Application procedure.
(a)All applications shall be submitted to the New Milford Tax Assessor on forms supplied by him/her. Each such application shall include the applicant's estimate of the cost of the construction or improvements subject to deferred assessment hereunder.
(b)The Tax Assessor, after consultation with the Building Official, shall review each application submitted to him/her and shall forward each such application to the Town Council within 30 days of receipt, together with his/her report concerning whether or not the application meets the eligibility criteria contained in this section. Such report shall include specific reasons in support of the findings expressed therein.
(c)Upon receipt of an application and report from the Tax Assessor, the Town Council shall either approve the application, reject the application, or return the application to the Tax Assessor for further information within 30 days. The Town Council shall state its findings for approval or its reasons for rejection upon the record. The applicant may file a revised application with the Tax Assessor, which addresses the reasons for rejection by the Town Council. (Ord. of 6-4-2003)
§ 19-47. Standard offer.
Notwithstanding the Town's authority to enter into statutorily authorized individual assessment deferral agreements with applicants as set forth more fully in § 19-49 of this ordinance, all qualified applicants, upon Town Council approval, will be entitled to receive a minimum deferral offer, which expressed as a percentage of the full additional assessment that would otherwise apply, shall be as set forth below:
Cost ofYearYearYearYear Year
Improvement 1 2 3 4 5
$3,000,000 or more 20% 40%60% 80% 100%
$500,000 to less25% 50%100% 100% 100%
than $3,000,000
$25,000 to less50% 75% 100% 100% 100%
than $500,000
(Ord. of 6-4-2003)
§ 19-48. Effectuation.
Deferral shall be effective upon completion of construction or improvements, upon certification by the Tax Assessor as hereinafter set forth, and upon issuance of certificate of occupancy. Deferral will be applied on a pro rata basis, so that any scheduled first-year benefit, commencing with certificate of occupancy issuance, will be continued from one assessment year to the next, as required, and for subsequent assessment years as well until the scheduled benefit expires. Deferral continuance shall be subject to the default provisions set forth in § 19-49(c) of this ordinance and the contingencies set forth in § 19-49(d). (Ord. of 6-4-2003)
§ 19-49. Deferral agreement.
The Town Council reserves the right, upon the applicant's request to enter into individual deferral agreements with individual applicants for deferral schedules other than the standard offer, within statutorily authorized limits, as may be set forth in Section 12-65b of the Connecticut General Statutes, and for all the uses set forth in 19-45(a) of this ordinance, except that retail uses in the Village Center Zone shall be added to said uses for the purpose of individual deferral agreements only. Agreements shall be predicated upon a finding by the Town Council, with input from the Mayor and Economic Development Commission, that the public benefit to the Town of New Milford likely to result from the proposed construction or improvements is sufficient to warrant special consideration.
(a)The assessment deferral agreement to be signed by the applicant and the Mayor on behalf of the Town shall refer to and incorporate the application as approved by the Town Council, shall reflect the assessment on the property immediately prior to the commencement of construction, and shall specify the period of deferral which shall begin with the issuance of a certificate of occupancy for the improvements to be constructed.
(b)The assessment deferral agreement shall provide that, upon completion of construction or improvements made in accordance with the terms of the agreement, and upon certification by the Tax Assessor, as hereinafter set forth, and upon issuance of the certificate of occupancy, the increase in the assessment on the property due to such construction or improvements shall be deferred in accordance with a statutorily authorized schedule, as determined by the Mayor and approved by the Town Council.
(c)The assessment deferral agreement shall provide that such construction or improvements shall be completed by a date fixed in such assessment deferral agreement. In the event that on the date so fixed for completion the Tax Assessor has denied certification that the construction or improvements have been performed in accordance with the eligibility criteria as set forth in this section and in accordance with the terms of the assessment deferral agreement, or at any time if the Tax Assessor determines that the owner or lessee of the property is in default under the terms of said agreement, and has failed to cure said default after notice and an opportunity to do so, the agreement shall terminate. In the event of such termination, the owner or lessee of the property, as herein provided, shall be liable for any increase in taxes for which he would have been liable in the absence of such agreement. The agreement shall further provide that a property owner or lessee, as herein provided, may apply to the Tax Assessor for an extension of time in which to complete the construction or improvement which, for good cause shown, the Tax Assessor may approve, but in no event shall such extension of time exceed a period of one year.
(d)The assessment deferral agreement shall further provide that the agreement is contingent upon the following conditions:
(1)That, in addition to the certification requirement of § 19-49(c) of this section, the property shall be subject to inspection and certification by the Building Inspector and Health Director, as being in conformance with such provisions of the state building and health codes and local housing codes as may apply, and by the Zoning Enforcement Officer to ensure conformance with the zoning regulations, as required;
(2)The assessment deferral shall continue only as long as the use of the property remains a use authorized by §§ 19-45(a) and 19-49 of this ordinance.
(3)That the assessment deferral shall cease if there is any delinquency in the payment of taxes on the property; and
(4)That the assessment deferral shall cease upon the sale or transfer of the improvements unless the new owner or lessee, as the case may be, of such property shall enter into a new contract with the Town incorporating all the terms of the agreement with the former owner or lessee, as herein provided. (Ord. of 6-4-2003)
§ 19-50. Miscellaneous provisions.
(a)The Tax Assessor, after consultation with the Building Official, shall have the sole responsibility for determining the cost and value of the construction or improvements subject to a deferral of assessment increases hereunder.
(b)A copy of any assessment deferral agreement entered into pursuant to the provisions of this ordinance shall be forwarded to the Tax Assessor, who shall adjust his records accordingly.
(c)The Tax Assessor shall forward a copy of its certification that the construction or improvements have been completed in accordance with the assessment deferral agreement to the Mayor. In the event that the Tax Assessor denies such certification, it shall send a copy of its denial to the Mayor (who shall inform the Town Council), and shall readjust his tax records in accordance with the provisions of this section.
(d)Any agreement entered into under the provisions of this ordinance shall be recorded on the land records of the Town.
(e)The Tax Assessor is authorized to establish written procedures and technical specifications for the administration of this ordinance.
(f)Properties upon which construction or improvements commenced prior to the adoption of this ordinance, but which have not yet received a certificate of occupancy, may be eligible for the benefits set forth in this ordinance, provided that they meet the requirements of and apply in accordance with the provisions of this ordinance. (Ord. of 6-4-2003)