AN ACT MITIGATING ADVERSE TAX CONSEQUENCES RESULTING FROM EMPLOYEES WORKING REMOTELY DURING COVID-19, AND CONCERNING THE REMOVAL OF LIENS ON THE PROPERTY OF PUBLIC ASSISTANCE BENEFICIARIES AND A THREE-TIERED GRANTS IN LIEU OF TAXES PROGRAM.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (Effective from passage) (a) As used in this section, "convenience of the employer rule" means a law or rule that is substantially similar to that set forth in section 12-711 of the general statutes, whether or not reciprocal, and "COVID-19" means the respiratory disease designated by the World Health Organization on February 11, 2020, as coronavirus 19, and any related mutation thereof recognized by said organization as a communicable respiratory disease.
(b) Notwithstanding any provision of title 12 of the general statutes, for the taxable year commencing January 1, 2020:
(1) Any resident who paid income tax to any other state that uses a convenience of the employer rule shall be allowed a credit against such resident's Connecticut income tax, for the tax paid to such other state on income earned by such resident while working remotely from this state for said taxable year, including while obligated by necessity to work remotely from this state;
(2) Any resident who paid income tax to any other state that has enacted a law or rule requiring a nonresident employee to pay nonresident income tax to such other state on income earned while such nonresident employee was working remotely from this state due to COVID-19 if, immediately prior to March 11, 2020, such nonresident employee was performing such work within such other state, shall be allowed a credit against such resident's Connecticut income tax, for the tax paid to such other state on income earned by such resident while working remotely from this state for said taxable year; and
(3) The Department of Revenue Services shall not consider, in determining whether an employer has nexus with this state for purposes of the imposition of any Connecticut tax, the activities of an employee who worked remotely from this state during said taxable year solely due to COVID-19.
Sec. 2. Section 4a-13 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2021):
The Commissioner of Administrative Services may accept mortgage notes and mortgage deeds in payment of claims due for [welfare assistance or] (1) institutional care, and (2) to the extent required under federal law, medical assistance. The commissioner may accept such mortgage notes and mortgage deeds on such terms and conditions as the commissioner deems proper and reasonable, and such encumbrances may be foreclosed in an action brought in a court of competent jurisdiction by the commissioner on behalf of the state. Any such encumbrance shall be released by the commissioner upon payment of the amount by it secured.
Sec. 3. Section 17b-79 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2021):
(a) As used in this section, "cash assistance" means payments made to a beneficiary of the state supplement program, temporary family assistance program or the state-administered general assistance program. No person shall be deemed ineligible to receive an award under the state supplement program, medical assistance program, temporary family assistance program, state-administered general assistance program or supplemental nutrition assistance program for himself or herself or for any person for whose support he or she is liable by reason of having an interest in real property, maintained as his or her home, provided the equity in such property [shall] does not exceed the limits established by the commissioner. The commissioner may place a lien against any property to secure the claim of the state for all amounts which it has paid or may thereafter pay to such person or in such person's behalf [under any such program, or] (1) for cash assistance or medical assistance, provided no such lien shall be placed on real property unless required by federal law, or (2) to or on behalf of any person for whose support he or she is liable, except for property maintained as a home in aid to families of dependent children cases, in which case such lien shall secure the state only for that portion of the assistance grant awarded for amortization of a mortgage or other encumbrance beginning with the fifth month after the original grant for principal payment on any such encumbrance is made, and each succeeding month of such grant thereafter. The claim of the state shall be secured by filing a certificate in the land records of the town or towns in which any such real estate is situated, describing such real estate. Any such lien may, at any time during which the amount secured by such lien remains unpaid, be foreclosed in an action brought in a court of competent jurisdiction by the commissioner on behalf of the state. Any real estate to which title has been taken by foreclosure under this section, or which has been conveyed to the state in lieu of foreclosure, may be sold, transferred or conveyed for the state by the commissioner with the approval of the Attorney General, and the commissioner may, in the name of the state, execute deeds for such purpose. Such lien shall be released by the commissioner upon payment of the amount secured by such lien, or an amount equal to the value of the beneficiary's interest in such property if the value of such interest is less than the amount secured by such lien, at the commissioner's discretion, and with the advice and consent of the Attorney General, upon a compromise of the amount due to the state. At the discretion of the commissioner, the beneficiary, or, in the case of a husband and wife living together, the survivor of them, as long as he or she lives, or a dependent child or children, may be permitted to occupy such real property.
(b) On and after July 1, 2021, the state shall not recover cash assistance or medical assistance from a lien filed on any real property, unless the state is required to recover such assistance under federal law. Any certificate or lien filed under this section by or on behalf of the state on such real property prior to July 1, 2021, shall be deemed released by the state if the recovery of such assistance is not required under federal law.
Sec. 4. Section 17b-93 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2021):
(a) If a beneficiary of aid under the state supplement program, medical assistance program, aid to families with dependent children program, temporary family assistance program or state-administered general assistance program has or acquires property of any kind or interest in any property, estate or claim of any kind, except moneys received for the replacement of real or personal property, the state of Connecticut shall have a claim, subject to subsections (b) and (c) of this section which shall have priority over all other unsecured claims and unrecorded encumbrances, against such beneficiary for the full amount paid, subject to the provisions of section 17b-94, to the beneficiary or on the beneficiary's behalf under said programs; provided no lien on real property shall be applied to enforce the claim of the state which exceeds the amount the state is required to recover under federal law, and, in addition thereto, the parents of an aid to dependent children beneficiary, a state-administered general assistance beneficiary or a temporary family assistance beneficiary shall be liable to repay, subject to the provisions of section 17b-94, to the state the full amount of any such aid paid to or on behalf of either parent, his or her spouse, and his or her dependent child or children, as defined in section 17b-75. The state of Connecticut shall have a lien against property of any kind or interest in any property, estate or claim of any kind of the parents of an aid to dependent children, temporary family assistance or state administered general assistance beneficiary, in addition and not in substitution of [its] any other state claim, for amounts owing under any order for support of any court or any family support magistrate, including any arrearage under such order, provided household goods and other personal property identified in section 52-352b, real property pursuant to section 17b-79, as amended by this act, as long as such property is used as a home for the beneficiary and money received for the replacement of real or personal property, shall be exempt from such lien.
(b) Any person who received cash benefits under the aid to families with dependent children program, the temporary family assistance program or the state-administered general assistance program, when such person was under eighteen years of age, shall not be liable to repay the state for such assistance.
(c) No claim, except a claim required to be made under federal law, shall be made, or lien applied, against any payment made pursuant to chapter 135, any payment made pursuant to section 47-88d or 47-287, any moneys received as a settlement or award in a housing or employment or public accommodation discrimination case or in any action brought by a tenant or occupant or former tenant or occupant against an owner or lessor of a residential premises or manufactured mobile home park, any court-ordered retroactive rent abatement, including any made pursuant to subsection (e) of section 47a-14h or section 47a-4a, 47a-5 or 47a-57, or any security deposit refund pursuant to subsection (d) of section 47a-21 paid to a beneficiary of assistance under the state supplement program, medical assistance program, aid to families with dependent children program, temporary family assistance program or state-administered general assistance program or paid to any person who has been supported wholly, or in part, by the state, in accordance with section 17b-223, in a humane institution.
(d) Notwithstanding any provision of the general statutes, whenever funds are collected pursuant to this section or section 17b-94, and the person who otherwise would have been entitled to such funds is subject to a court-ordered current or arrearage child support payment obligation in a IV-D support case, such funds shall first be paid to the state for reimbursement of Medicaid funds granted to such person for medical expenses incurred for injuries related to a legal claim by such person which was the subject of the state's lien and such funds shall then be paid to the Office of Child Support Services for distribution pursuant to the federally mandated child support distribution system implemented pursuant to subsection (j) of section 17b-179. The remainder, if any, shall be paid to the state for payment of previously provided assistance through the state supplement program, medical assistance program, aid to families with dependent children program, temporary family assistance program or state-administered general assistance program.
(e) The Commissioner of Social Services shall adopt regulations, in accordance with chapter 54, establishing criteria and procedures for adjustment of the claim of the state of Connecticut under subsection (a) of this section. The purpose of any such adjustment shall be to encourage the positive involvement of noncustodial parents in the lives of their children and to encourage noncustodial parents to begin making regular support payments.
(f) On and after July 1, 2021, the state shall not recover cash assistance or medical assistance from a lien filed on any real property, unless the state is required to recover such assistance under federal law. Any lien on real property filed under this section by or on behalf of the state on such property, estate or claim of any kind prior to July 1, 2021, shall be deemed released by the state if the recovery of such assistance is not required under federal law. As used in this subsection, "cash assistance" means payments made to a beneficiary of the aid to families with dependent children program, the state-administered general assistance program, the state supplement program or the temporary family assistance program.
Sec. 5. Section 12-18b of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2021):
(a) For the purposes of this section:
(1) "College and hospital property" means all real property described in subsection (a) of section 12-20a;
(2) "District" [means any district, as defined] has the same meaning as provided in section 7-324;
[(3) "Qualified college and hospital property" means college and hospital property described in subparagraph (B) of subdivision (2) of subsection (b) of this section;
(4) "Qualified state, municipal or tribal property" means state, municipal or tribal property described in subparagraphs (A) to (G), inclusive, of subdivision (1) of subsection (b) of this section;]
(3) "Equalized net grand list per capita" means the grand list of a municipality upon which taxes were levied for the general expenses of such municipality three years prior to the fiscal year in which a grant under this section is to be paid, equalized in accordance with the provisions of section 10-261a and divided by the total population of such municipality;
[(5)] (4) "Municipality" means any town, city, borough, consolidated town and city and consolidated town and borough;
[(6) "Select college and hospital property" means college and hospital property described in subparagraph (A) of subdivision (2) of subsection (b) of this section;
(7) "Select payment in lieu of taxes account" means the account established pursuant to section 12-18c;
(8) "Select state property" means state property described in subparagraph (H) of subdivision (1) of subsection (b) of this section;]
[(9)] (5) "State, municipal or tribal property" means all real property described in subsection (a) of section 12-19a;
[(10) "Tier one districts or municipalities" means the ten districts or municipalities with the highest percentage of tax exempt property on the list of municipalities prepared by the Secretary of the Office of Policy and Management pursuant to subsection (c) of this section and having a mill rate of twenty-five mills or more;
(11) "Tier two districts or municipalities" means the next twenty-five districts or municipalities after tier one districts or municipalities with the highest percentage of tax exempt property on the list of municipalities prepared by the Secretary of the Office of Policy and Management pursuant to subsection (c) of this section and having a mill rate of twenty-five mills or more;
(12) "Tier three districts or municipalities" means all districts and municipalities not included in tier one districts or municipalities or tier two districts or municipalities;
(13) "Tier one municipalities" means the ten municipalities with the highest percentage of tax exempt property on the list of municipalities prepared by the Secretary of the Office of Policy and Management pursuant to subsection (c) of this section and having a mill rate of twenty-five mills or more;
(14) "Tier two municipalities" means the next twenty-five municipalities after tier one municipalities with the highest percentage of tax exempt property on the list of municipalities prepared by the Secretary of the Office of Policy and Management pursuant to subsection (c) of this section and having a mill rate of twenty-five mills or more;
(15) "Tier three municipalities" means all municipalities not included in tier one municipalities or tier two municipalities; and
(16) "Mill rate" means the mill rate on real property and personal property other than motor vehicles]
(6) "Tier one municipality" means a municipality with an equalized net grand list per capita of less than one hundred thousand dollars;
(7) "Tier two municipality" means a municipality with an equalized net grand list per capita of one hundred thousand dollars to two hundred thousand dollars; and
(8) "Tier three municipality" means a municipality with an equalized net grand list per capita of greater than two hundred thousand dollars.
(b) Notwithstanding the provisions of sections 12-19a and 12-20a, all funds appropriated for state grants in lieu of taxes shall be payable to municipalities and districts pursuant to the provisions of this section. On or before January first, annually, the Secretary of the Office of Policy and Management shall determine the amount due, as a state grant in lieu of taxes, to each municipality and district in this state wherein college and hospital property is located and to each municipality in this state wherein state, municipal or tribal property, except that which was acquired and used for highways and bridges, but not excepting property acquired and used for highway administration or maintenance purposes, is located.
(1) The grant payable to any municipality for state, municipal or tribal property under the provisions of this section in the fiscal year ending June 30, 2017, and each fiscal year thereafter, shall be equal to the total of:
(A) One hundred per cent of the property taxes that would have been paid with respect to any facility designated by the Commissioner of Correction, on or before August first of each year, to be a correctional facility administered under the auspices of the Department of Correction or a juvenile detention center under direction of the Department of Children and Families that was used for incarcerative purposes during the preceding fiscal year. If a list containing the name and location of such designated facilities and information concerning their use for purposes of incarceration during the preceding fiscal year is not available from the Secretary of the State on August first of any year, the Commissioner of Correction shall, on said date, certify to the Secretary of the Office of Policy and Management a list containing such information;
(B) One hundred per cent of the property taxes that would have been paid with respect to that portion of the John Dempsey Hospital located at The University of Connecticut Health Center in Farmington that is used as a permanent medical ward for prisoners under the custody of the Department of Correction. Nothing in this section shall be construed as designating any portion of The University of Connecticut Health Center John Dempsey Hospital as a correctional facility;
(C) One hundred per cent of the property taxes that would have been paid on any land designated within the 1983 Settlement boundary and taken into trust by the federal government for the Mashantucket Pequot Tribal Nation on or after June 8, 1999;
(D) Subject to the provisions of subsection (c) of section 12-19a, sixty-five per cent of the property taxes that would have been paid with respect to the buildings and grounds comprising Connecticut Valley Hospital and Whiting Forensic Hospital in Middletown;
(E) With respect to any municipality in which more than fifty per cent of the property is state-owned real property, one hundred per cent of the property taxes that would have been paid with respect to such state-owned property;
(F) Forty-five per cent of the property taxes that would have been paid with respect to all municipally owned airports; except for the exemption applicable to such property, on the assessment list in such municipality for the assessment date two years prior to the commencement of the state fiscal year in which such grant is payable. The grant provided pursuant to this section for any municipally owned airport shall be paid to any municipality in which the airport is located, except that the grant applicable to Sikorsky Airport shall be paid one-half to the town of Stratford and one-half to the city of Bridgeport;
(G) Forty-five per cent of the property taxes that would have been paid with respect to any land designated within the 1983 Settlement boundary and taken into trust by the federal government for the Mashantucket Pequot Tribal Nation prior to June 8, 1999, or taken into trust by the federal government for the Mohegan Tribe of Indians of Connecticut, provided the real property subject to this subparagraph shall be the land only, and shall not include the assessed value of any structures, buildings or other improvements on such land; and
(H) Forty-five per cent of the property taxes that would have been paid with respect to all other state-owned real property.
(2) [(A)] The grant payable to any municipality or district for college and hospital property under the provisions of this section in the fiscal year ending June 30, 2017, and each fiscal year thereafter, shall be equal to the total of seventy-seven per cent of the property taxes that, except for any exemption applicable to any college and hospital property under the provisions of section 12-81, would have been paid with respect to college and hospital property on the assessment list in such municipality or district for the assessment date two years prior to the commencement of the state fiscal year in which such grant is payable. [; and]
[(B) Notwithstanding the provisions of subparagraph (A) of this subdivision, the grant payable to any municipality or district with respect to a campus of the United States Department of Veterans Affairs Connecticut Healthcare Systems shall be one hundred per cent.]
(c) The Secretary of the Office of Policy and Management shall list municipalities, boroughs and districts based on the [percentage of real property on the 2012] equalized net grand list per capita. [of each municipality that is exempt from property tax under any provision of the general statutes other than that property described in subparagraph (A) of subdivision (1) of subsection (b) of this section.] Boroughs and districts shall have the same [ranking] equalized net grand list per capita as the town, city, consolidated town and city or consolidated town and borough in which such borough or district is located.
[(d) For the fiscal year ending June 30, 2017, if the total of grants payable to each municipality and district in accordance with the provisions of subsection (b) of this section exceeds the amount appropriated for the purposes of said subsection (b) for said fiscal year: (1) The amount of the grant payable to each municipality for state, municipal or tribal property and to each municipality or district for college and hospital property shall be reduced proportionately, provided the percentage of the property taxes payable to a municipality or district with respect to such property shall not be lower than the percentage paid to the municipality or district for such property for the fiscal year ending June 30, 2015; and (2) certain municipalities and districts shall receive an additional payment in lieu of taxes grant payable from the Municipal Revenue Sharing Fund established in section 4-66p. The total amount of the grant payment is as follows:
Municipality/District | Grant Amount |
|---|---|
Ansonia | 19,652 |
Bridgeport | 3,095,669 |
Chaplin | 10,692 |
Danbury | 593,619 |
Deep River | 1,876 |
Derby | 132,817 |
East Granby | 9,474 |
East Hartford | 205,669 |
Hamden | 593,967 |
Hartford | 11,883,205 |
Killingly | 44,593 |
Ledyard | 2,881 |
Litchfield | 13,303 |
Mansfield | 2,516,331 |
Meriden | 248,303 |
Middletown | 695,770 |
Montville | 25,080 |
New Britain | 1,995,060 |
New Haven | 14,584,940 |
New London | 1,297,919 |
Newington | 169,211 |
North Canaan | 4,203 |
Norwich | 248,588 |
Plainfield | 15,417 |
Simsbury | 20,731 |
Stafford | 41,189 |
Stamford | 528,332 |
Suffield | 51,434 |
Wallingford | 58,914 |
Waterbury | 3,141,669 |
West Hartford | 202,308 |
West Haven | 324,832 |
Windham | 1,193,950 |
Windsor | 9,241 |
Windsor Locks | 31,122 |
Borough of Danielson (Killingly) | 2,135 |
Borough of Litchfield | 137 |
Middletown: South Fire District | 1,121 |
Plainfield — Plainfield Fire District | 296 |
West Haven First Center (D1) | 1,136 |
West Haven: Allingtown FD (D3) | 50,751 |
West Haven: West Shore FD (D2) | 33,544 |
(e)(1) For the fiscal years ending June 30, 2018, and June 30, 2019, if the total of grants payable to each municipality and district in accordance with the provisions of subsection (b) of this section exceeds the amount appropriated for the purposes of said subsection (b) for said fiscal years: (A) The amount of the grant payable to each municipality for state, municipal or tribal property and to each municipality or district for college and hospital property shall be reduced proportionately, provided the percentage of the property taxes payable to a municipality or district with respect to such property shall not be lower than the percentage paid to the municipality or district for such property for the fiscal year ending June 30, 2015; and (B) certain municipalities and districts shall receive an additional payment in lieu of taxes grant payable from the select payment in lieu of taxes account. The total amount of the grant payment is as follows:
Municipality/District | Grant Amount |
|---|---|
Ansonia | 20,543 |
Bridgeport | 3,236,058 |
Chaplin | 11,177 |
Danbury | 620,540 |
Deep River | 1,961 |
Derby | 138,841 |
East Granby | 9,904 |
East Hartford | 214,997 |
Hamden | 620,903 |
Hartford | 12,422,113 |
Killingly | 46,615 |
Ledyard | 3,012 |
Litchfield | 13,907 |
Mansfield | 2,630,447 |
Meriden | 259,564 |
Middletown | 727,324 |
Montville | 26,217 |
New Britain | 2,085,537 |
New Haven | 15,246,372 |
New London | 1,356,780 |
Newington | 176,884 |
North Canaan | 4,393 |
Norwich | 259,862 |
Plainfield | 16,116 |
Simsbury | 21,671 |
Stafford | 43,057 |
Stamford | 552,292 |
Suffield | 53,767 |
Wallingford | 61,586 |
Waterbury | 3,284,145 |
West Hartford | 211,483 |
West Haven | 339,563 |
Windham | 1,248,096 |
Windsor | 9,660 |
Windsor Locks | 32,533 |
Borough of Danielson (Killingly) | 2,232 |
Borough of Litchfield | 143 |
Middletown: South Fire District | 1,172 |
Plainfield — Plainfield Fire District | 309 |
West Haven First Center (D1) | 1,187 |
West Haven: Allingtown FD (D3) | 53,053 |
West Haven: West Shore FD (D2) | 35,065 |
(2) For the fiscal year ending June 30, 2020, and each fiscal year thereafter, if the total of grants payable to each municipality and district in accordance with the provisions of subsection (b) of this section exceeds the amount appropriated for the purposes of said subsection (b) for said fiscal years:
(A) The amount of the grant payable to each municipality for qualified state, municipal or tribal property and to each municipality or district for qualified college and hospital property shall be reduced proportionately, provided the percentage of the property taxes payable to a municipality or district with respect to such property shall not be lower than the percentage paid to the municipality or district for such property for the fiscal year ending June 30, 2015;
(B) The amount of the grant payable to each municipality or district for select college and hospital property shall be reduced as follows: (i) Tier one districts or municipalities shall each receive a grant in lieu of taxes equal to forty-two per cent of the property taxes that, except for any exemption applicable to any college and hospital property under the provisions of section 12-81, would have been paid to such municipality or district with respect to select college and hospital property; (ii) tier two districts or municipalities shall each receive a grant in lieu of taxes equal to thirty-seven per cent of the property taxes that, except for any exemption applicable to any college and hospital property under the provisions of section 12-81, would have been paid to such municipality or district with respect to select college and hospital property; and (iii) tier three districts or municipalities shall each receive a grant in lieu of taxes equal to thirty-two per cent of the property taxes that, except for any exemption applicable to any college and hospital property under the provisions of section 12-81, would have been paid to such municipality or district with respect to select college and hospital property. Grants in excess of thirty-two per cent of the property taxes that, except for any exemption applicable to any college and hospital property under the provisions of section 12-81, would have been paid to tier one districts or municipalities and to tier two districts or municipalities with respect to select college and hospital property shall be payable from the select payment in lieu of taxes account; and
(C) The amount of the grant payable to each municipality for select state property shall be reduced as follows: (i) Tier one municipalities shall each receive a grant in lieu of taxes equal to thirty-two per cent of the property taxes that, except for any exemption applicable to any state property under the provisions of section 12-81, would have been paid to such municipality with respect to select state property; (ii) tier two municipalities shall each receive a grant in lieu of taxes equal to twenty-eight per cent of the property taxes that, except for any exemption applicable to any state property under the provisions of section 12-81, would have been paid to such municipality with respect to select state property; and (iii) tier three municipalities shall each receive a grant in lieu of taxes equal to twenty-four per cent of the property taxes that, except for any exemption applicable to any state property under the provisions of section 12-81, would have been paid to such municipality with respect to select state property. Grants in excess of twenty-four per cent of the property taxes that, except for any exemption applicable to any state property under the provisions of section 12-81, would have been paid to tier one municipalities and to tier two municipalities with respect to select state property shall be payable from the select payment in lieu of taxes account.
(3) If the total of grants payable to each municipality and district in accordance with the provisions of subsection (b) of this section and subdivision (2) of this subsection exceeds the amount appropriated for the purposes of said subsection and said subdivision and the amount available in the select payment in lieu of taxes account in any fiscal year, the amount of the grant payable to each municipality for state, municipal or tribal property and to each municipality or district for college and hospital property shall be reduced proportionately, provided (A) the grant payable to tier one districts or municipalities for select college and hospital property shall be ten percentage points more than the grant payable to tier three districts or municipalities for such property, (B) the grant payable to tier two districts or municipalities for select college and hospital property shall be five percentage points more than the grant payable to tier three districts or municipalities for such property, (C) the grant payable to tier one municipalities for select state property shall be eight percentage points more than the grant payable to tier three municipalities for such property, and (D) the grant payable to tier two municipalities for select state property shall be four percentage points more than the grant payable to tier three municipalities for such property. Grants to tier one municipalities or districts and grants to tier two municipalities or districts in excess of grants paid to tier three municipalities or districts pursuant to this subsection shall be payable from the select payment in lieu of taxes account. Grants to tier one municipalities and grants to tier two municipalities in excess of grants paid to tier three municipalities pursuant to this subsection shall be payable from the select payment in lieu of taxes account.]
(d) For the fiscal year ending June 30, 2022, and each fiscal year thereafter:
(1) The amount of the grant paid to a municipality or district pursuant to the provisions of this subsection shall not be lower than the amount of the payment in lieu of taxes grant received by such municipality or district for the fiscal year ending June 30, 2021.
(2) If the total of grants payable to each municipality and district in accordance with the provisions of subsection (b) this section exceeds the amount appropriated for the purposes of said subsection for a fiscal year:
(A) Each tier one municipality shall receive fifty per cent of the grant amount payable to such municipality as calculated under subsection (b) of this section;
(B) Each tier two municipality shall receive forty per cent of the grant amount payable to such municipality as calculated under subsection (b) of this section; and
(C) Each tier three municipality shall receive thirty per cent of the grant amount payable to such municipality as calculated under subsection (b) of this section.
(3) Each municipality designated as an alliance district pursuant to section 10-262u or in which more than fifty per cent of the property is state-owned real property shall be classified as a tier one municipality.
(4) Each district shall receive the same percentage of the grant amount payable to the municipality in which it is located.
(5)(A) If the total of grants payable to each municipality and district in accordance with the provisions of subsection (b) of this section exceeds the amount appropriated for the purposes of said subsection, but such appropriated amount exceeds the amount required for grants payable to each municipality and district in accordance with the provisions of subdivisions (1) to (4), inclusive, of this subsection, the amount of the grant payable to each municipality and district shall be increased proportionately.
(B) If the total of grants payable to each municipality and district in accordance with the provisions of subdivisions (1) to (4), inclusive, of this subsection exceeds the amount appropriated for the purposes of said subdivisions, the amount of the grant payable to each municipality and district shall be reduced proportionately, except that no grant shall be reduced below the amount set forth in subdivision (1) of this subsection.
[(f)] (e) Notwithstanding the provisions of subsections (a) to (d), inclusive, of this section: [, for]
(1) The grant payable to any municipality or district with respect to a campus of the United States Department of Veterans Affairs Connecticut Healthcare Systems shall be one hundred per cent;
(2) For any municipality receiving payments under section 15-120ss, property located in such municipality at Bradley International Airport shall not be included in the calculation of any state grant in lieu of taxes pursuant to this section; and
(3) The city of Bridgeport shall be due five million dollars, on or before the thirtieth day of September, annually, which amount shall be (A) paid from the annual appropriation, from the General Fund, for reimbursement to towns for loss of taxes on private tax-exempt property, and (B) in addition to the amount due such city pursuant to the provisions of subsections (b) or (d) of this section.
[(g)] (f) For purposes of this section, any real property [which] that is owned by the John Dempsey Hospital Finance Corporation established pursuant to the provisions of sections 10a-250 to 10a-263, inclusive, or by one or more subsidiary corporations established pursuant to subdivision (13) of section 10a-254 and [which] that is free from taxation pursuant to the provisions of section 10a-259 shall be deemed to be state-owned real property.
[(h) The Office of Policy and Management shall report, in accordance with the provisions of section 11-4a, to the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding, on or before July 1, 2017, and on or before July first annually thereafter until July 1, 2020, with regard to the grants distributed in accordance with this section, and shall include in such reports any recommendations for changes in the grants.]
Sec. 6. Subsection (b) of section 4-66l of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2021):
(b) There is established an account to be known as the "municipal revenue sharing account" which shall be a separate, nonlapsing account within the General Fund. The account shall contain any moneys required by law to be deposited in the account. The secretary shall set aside and ensure availability of moneys in the account in the following order of priority and shall transfer or disburse such moneys as follows:
(1) Ten million dollars for the fiscal year ending June 30, 2016, shall be transferred not later than April fifteenth for the purposes of grants under section 10-262h;
(2) For the fiscal year ending June 30, 2018, and each fiscal year thereafter, moneys sufficient to make motor vehicle property tax grants payable to municipalities pursuant to subsection (c) of this section shall be expended not later than August first annually by the secretary;
(3) For the fiscal year ending June 30, [2018] 2022, and each fiscal year thereafter, moneys sufficient to make the grants payable [from the select payment in lieu of taxes grant account established pursuant to section 12-18c shall annually be transferred to the select payment in lieu of taxes account in the Office of Policy and Management] pursuant to subsection (d) of section 12-18b, as amended by this act, shall be expended by the secretary;
(4) For the fiscal years ending June 30, 2018, and June 30, 2019, moneys sufficient to make the municipal revenue sharing grants payable to municipalities pursuant to subdivision (2) of subsection (d) of this section shall be expended not later than October thirty-first annually by the secretary;
(5) For the fiscal year ending June 30, 2018, and each fiscal year thereafter, seven million dollars shall be expended for the purposes of the regional services grants pursuant to subsection (e) of this section to the regional councils of governments;
(6) For the fiscal year ending June 30, 2018, and each fiscal year thereafter, moneys may be expended for the purpose of supplemental motor vehicle property tax grants pursuant to subsection (c) of this section; and
(7) For the fiscal year ending June 30, 2020, and each fiscal year thereafter, moneys in the account remaining shall be expended annually by the secretary for the purposes of the municipal revenue sharing grants established pursuant to subsection (f) of this section. Any such moneys deposited in the account for municipal revenue sharing grants between October first and June thirtieth shall be distributed to municipalities on the following October first and any such moneys deposited in the account between July first and September thirtieth shall be distributed to municipalities on the following January thirty-first. Any municipality may apply to the Office of Policy and Management on or after July first for early disbursement of a portion of such grant. The Office of Policy and Management may approve such an application if it finds that early disbursement is required in order for a municipality to meet its cash flow needs. No early disbursement approved by said office may be issued later than September thirtieth.
Sec. 7. Section 15-31g of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2021):
The exercise of the powers granted by sections 15-31a to 15-31i, inclusive, shall be in all respects for the benefit of the people of the state, for the increase of their commerce, welfare and prosperity, and as the improvement of their infrastructure, navigability and transportation systems by the authority or its agent shall constitute the performance of an essential public function, neither the authority nor its agent shall be required to pay any taxes or assessments, including mortgage recording taxes, upon or with respect to any property acquired or used by the authority or its agent under the provisions of sections 15-31a to 15-31i, inclusive, or upon the income therefrom. [On and before June 30, 2018, property] Property and facilities owned by the authority shall be deemed to be state-owned real property for purposes of [sections 12-19a and 12-19b] section12-18b, as amended by this act, and the state shall make grants in lieu of taxes with respect to such property and facilities to the municipality in which such property and facilities are located as provided by [said sections 12-19a and 12-19b] section 12-18b, as amended by this act.
Sec. 8. Section 12-18c of the general statutes is repealed. (Effective July 1, 2021)
Approved March 4, 2021