§ 12-64 — Real estate liable to taxation. Easements in air space. Separate assessment of the interest of a lessee. Conditions under which lessee of state-owned property is subject to tax.

Connecticut § 12-64

• Jurisdiction: Connecticut
• Title 12: Taxation
• Ch. 203: Property Tax Assessment

Text

(a) All the following mentioned property, not exempted, shall be set in the list of the town where it is situated and, except as otherwise provided by law, shall be liable to taxation at a uniform percentage of its present true and actual valuation, not exceeding one hundred per cent of such valuation, to be determined by the assessors: Dwelling houses, garages, barns, sheds, stores, shops, mills, buildings used for business, commercial, financial, manufacturing, mercantile and trading purposes, ice houses, warehouses, silos, all other buildings and structures, house lots, all other building lots and improvements thereon and thereto, including improvements that are partially completed or under construction, agricultural lands, shellfish lands, all other lands and improvements thereon and thereto, quarries, mines, ore beds, fisheries, property in fish pounds, machinery and easements to use air space whether or not contiguous to the surface of the ground. An easement to use air space shall be an interest in real estate and may be assessed separately from the surface of the ground below it. Any interest in real estate shall be set by the assessors in the list of the person in whose name the title to such interest stands on the land records. If the interest in real estate consists of an easement to use air space, whether or not contiguous to the surface of the ground, which easement is in the form of a lease for a period of not less than fifty years, which lease is recorded in the land records of the town and provides that the lessee shall pay all taxes, said interest shall be deemed to be a separate parcel and shall be separately assessed in the name of the lessee. If the interest in real estate consists of a lease of land used for residential purposes which allows the lessee to remove any or all of the structures, buildings or other improvements on said land erected or owned by the lessee, which lease is recorded in the land records of the town and provides that the lessee shall pay all taxes with respect to such structures, buildings or other improvements, said interest shall be deemed to be a separate parcel and said structures, buildings or other improvements shall be separately assessed in the name of the lessee, provided such separate assessment shall not alter or limit in any way the enforcement of a lien on such real estate in accordance with chapter 205, for taxes with respect to such real estate including said land, structures, buildings or other improvements. For purposes of determining the applicability of the provisions of this section to any such interest in real estate, “lessee” means any person who is a lessee or sublessee under the terms of the lease agreement in accordance with which such interest in real estate is established. (b) Except as provided in subsection (c) of this section, any land, buildings or easement to use air rights belonging to or held in trust for the state, not used for purposes attributable to functions of the state government or any other governmental purpose but leased to a person or organization for use unrelated to any such purpose, exclusive of any such lease with respect to which a binding agreement is in effect on June 25, 1985, shall be separately assessed in the name of the lessee and subject to local taxation annually in the name of the lessee having immediate right to occupancy of such land or building, by the town wherein situated as of the assessment day next following the date of leasing pursuant to section 4b-38 . If such property or any portion thereof is leased to any organization which, if the property were owned by or held in trust for such organization, would not be liable for taxes with respect to such property under any of the subdivisions of section 12-81 , such organization shall be entitled to exemption from property taxes as the lessee under such lease, provided such property is used exclusively for the purposes of such organization as stated in the applicable subdivision of section 12-81 and the portion of such property so leased to such exempt organization shall be eligible for a grant in lieu of taxes pursuant to section 12-18b . Whenever the lessee of such property is required to pay property taxes to the town in which such property is situated as provided in this subsection, the assessed valuation of such property subject to the interest of the lessee shall not be included in the annual list of assessed values of state-owned real property in such town as prepared for purposes of state grants in accordance with section 12-18b and the amount of grant to such town under section 12-18b shall be determined without consideration of such assessed value. (c) The provisions of subsection (b) of this section shall not be applicable to (1) any land, building or easement belonging to or held in trust for the state of Connecticut or the Connecticut Airport Authority at Bradley International Airport or any general aviation airport or other airport, as such terms are defined in section 15-120aa , and (2) any restaurant, gasoline station or other service facility or public convenience as may be deemed appropriate by the Commissioner of Transportation for state highway, mass transit, marine or aviation purposes. In the event a lessee of property, belonging to or held in trust for the state or a constituent unit of the state system of higher education, who is subject to taxation pursuant to the provisions of this subsection or pursuant to subsection (g) of section 4b-38 is delinquent in the payment of such tax, a municipal tax collector may enforce the collection of said tax by all legal means available, except for the filing of a lien on such property. See Sec. 7-33 re lists of transfers of taxable property.

Legislative History

(1949 Rev., S. 1738; 1957, P.A. 673, S. 6; 1961, P.A. 347; 1967, P.A. 829; 1969, P.A. 139, S. 1; P.A. 75-321, S. 1, 2; P.A. 81-58, S. 2, 4; P.A. 85-448, S. 1, 2; P.A. 93-64, S. 1, 2; P.A. 97-282, S. 3, 6; P.A. 03-269, S. 2; P.A. 12-157, S. 3; P.A. 13-277, S. 61; P.A. 14-122, S. 87; P.A. 15-244, S. 191.) History: 1961 act added “agricultural lands” to list; 1967 act added provisions re assessments of easements to use air space; 1969 act added provision re assessment and taxation of land, buildings and easements within highway rights-of-way leased by state to nonexempt lessees; P.A. 75-321 added provisions re separate assessment of structures and improvements erected by lessee; P.A. 81-58 made provisions of section applicable to a lessee applicable also in the case of a sublessee, effective April 28, 1981, and applicable in any municipality to the assessment year commencing October 1, 1981, and each assessment year thereafter; P.A. 85-448 deleted provision in Subsec. (a) re taxation of certain leased land, buildings and easements for air rights within highway rights-of-way on ad valorem basis and added Subsecs. (b) and (c) in which the interest of a lessee of state-owned real property is subject to property tax under certain conditions, effective June 25, 1985, and applicable in any town to the assessment year commencing October 1, 1985, and each assessment year thereafter; P.A. 93-64 specified in Subsec. (a) that structures and improvements to building lots and other lands are liable to taxation, effective May 10, 1993; P.A. 97-282 amended Subsecs. (a) and (b) to provide that property leased to an exempt organization is eligible for grant in lieu of taxes under Sec. 12-19a and to make technical and conforming changes, effective June 26, 1997; P.A. 03-269 amended Subsec. (b) to revise provisions re the property tax liability of certain lessees of property and amended Subsec. (c) to make a technical change, add provisions re enforcement powers of tax collectors and prohibit tax collectors from filing liens on state-owned property leased for nongovernmental purposes, effective July 9, 2003; P.A. 12-157 amended Subsec. (a) to add reference to improvements that are partially completed or under construction, effective October 1, 2012, and applicable to assessment years commencing on or after that date; P.A. 13-277 amended Subsec. (c) to make a technical change and to add provisions re inapplicability of Subsec. (b) to property belonging to or held for Connecticut Airport Authority at Bradley International Airport, general aviation airports or other airports, effective July 1, 2013, and applicable to assessment years commencing on and after October 1, 2012; P.A. 14-122 made technical changes in Subsec. (a); P.A. 15-244 amended Subsec. (b) by replacing references to Sec. 12-19a with reference to Sec. 12-18b and making technical changes, effective July 1, 2016. Machinery in mill taxable as part thereof though owners nonresidents. 30 C. 18. Real estate is not validly listed in name of agent of owner. 59 C. 422. Joint assessment of benefits where interests are separate, irregular. 60 C. 112. Grievance merely that property is valued higher than other like property no ground for relief. 63 C. 18, 79. Record to be followed though corporation has changed its name. 66 C. 475. Tenant by curtesy should list land in his name. 67 C. 272. Land held validly listed in name of corporation, and not in name of its receiver. 72 C. 64. Water power taxable here though transmitted for use to adjoining state. 73 C. 294. Refers to freeholds, not leaseholds. 75 C. 592. Bridge structure of bridge company held not within section. 77 C. 314. As to water mains, see 79 C. 70; 85 C. 119. Listing property to the heirs of one deceased. 79 C. 632. Buildings apart from land may be real estate. 85 C. 6, 8. Easements not land within section. Id., 127. Commencement of proceedings to condemn land of no consequence. 88 C. 76. Unless land listed in name of record owner, no recovery can be had. 91 C. 595. Valuation of land set in by the acre may be based on value in view of suitability for house lots. 103 C. 155. Fair market value discussed. 105 C. 581. Legislature cannot validate an assessment laid on holder of leasehold interest. 107 C. 701. Leased land must be assessed against owner of fee. Id., see also 75 C. 590. Cited. 109 C. 389. Erroneous for board of relief to use rule putting properties in list at 75% of true value. 115 C. 578. Methods to be used in determining “true and actual valuation.” 122 C. 230. Cited. 123 C. 546. Valuation by assessors is discretionary and cannot be controlled by mandamus. 128 C. 650. Cited. 131 C. 581; 136 C. 30; 143 C. 100; 146 C. 578. Wide discretion in assessors and, unless their action is discriminatory or unreasonable, their opinion and judgment should control in determination of value for taxation purposes. Id., 669. On appeal, before court can employ another method of valuation, it must be established that method employed by assessors was not an acceptable or proper method under circumstances. Id., 681. Cited. 149 C. 32. Probative value of sale price of corporate stock for purpose of determining value of real estate depends on particular circumstances and cannot be utilized where facts indicate sale was by a corporation in financial distress; fair market value as of assessment date is the criterion regardless of intended future use. Id., 33. Cited. Id., 453. Where uniform percentage is not applied, owner is entitled to relief if assessment of property exceeds amount computed by ratio of fair value. 151 C. 79. Assessed valuations made without participation of owner are not generally admissible on issue of value of property taken by eminent domain. 159 C. 407. Cited. 162 C. 87; 163 C. 433. Unless otherwise provided, rights-of-way, which do not include public utility easements, are not taxable separate from freeholds. 165 C. 211. Cited. 169 C. 663; 170 C. 477; 171 C. 74; 172 C. 439; 174 C. 380. Amendments to Sec. 12-75 by 1967 P.A. 439 supersede earlier enacted general provisions of this section. Id., 556. A communications tower cannot appropriately be classified as a “building” within meaning of statute and is therefore not subject to taxation. 180 C. 409, 410. Court has limited use of average ratio analysis as a remedy to cases where evidence establishes assessor failed to follow requirements of statute. 182 C. 619. Application of fixed percentage factor by assessor to increase assessments cannot reasonably be found to fulfill statutory duty to determine “true and actual valuation” of each individual property. 184 C. 333. Cited. 195 C. 48; 203 C. 425; 210 C. 233; 220 C. 335; 226 C. 92; 232 C. 335; 240 C. 422; 242 C. 363. Assessor's goal under section is to determine value of property as accurately as possible. 249 C. 110. Virtually permanent airport hangars fall within the meaning of a shed or building and are therefore taxable as personal property; Subsecs. (b) and (c) do not apply to privately-owned airport hangar located on municipal airport property. 317 C. 863. Cited. 2 CA 152; 7 CA 496; 13 CA 393; 21 CA 275. On appeal, the court may consider new evidence in determining “true and actual valuation”. 1 CS 112. “Present true and actual valuation” is synonymous with “fair market value”; real property is assessable according to the use adopted. 6 CS 505. If there is a market for real property, it must be assessed at fair market value. 8 CS 540. Cited. 11 CS 241; 12 CS 47. Property may be taxed although it receives no benefit from such taxes. 14 CS 258. Cited. 41 CS 457. Cited. 5 Conn. Cir. Ct. 195. Subsec. (a): Wind turbines are squarely encompassed by the commonly approved usage of “structure” for purposes of this statute. 344 C. 150. Subsec. (c): Subject hangars at Brainard Airport are exempt from municipal property taxes pursuant to Subsec., which exempts from taxation property located on a state-owned airport and leased to private individuals; plaintiffs are in possession of the hangars by virtue of the lease from the state to Connecticut Hangars, not by virtue of the warranty deeds from Connecticut Hangars. 50 CS 476.