§ 44-65. Fixing of assessments attributable to the placement of personal property to be located in a manufacturing facility.

(a)

Preamble, general findings and authority. Whereas, the Connecticut General Assembly has authorized municipalities to fix assessments attributable to personal property located in a manufacturing facility in accordance with the provisions of C.G.S. § 12-65h; and whereas the deferral of assessment increases attributable to the placement of such personal property will encourage economic development within the City of Danbury and the continued economic vitality of the City; now, therefore, in accordance with the provisions of C.G.S. § 12-65h, the City does hereby provide for the fixing of assessments and the deferral of assessment increases attributable to the placement of such personal property within the City of Danbury as specified herein.

(b)

Application and eligibility. An application to the City for fixing the assessment attributable to the personal property located in a manufacturing facility, as defined in C.G.S. § 12-81(72), may be made by any party owning or proposing to acquire an interest in real property, or any party owning or proposing to acquire an interest in air space, or any party who is the lessee of, or who proposes to be the lessee of, air space in such a manner that the air space leased or proposed to be leased shall be assessed to the lessee pursuant to C.G.S. § 12-64 upon which is located or proposed to be located such a facility. In order to be eligible for the benefits provided by this section, the City Council must find that:

(1)

No tax delinquency, which is not the subject of a valid and timely appeal, exists with respect to either the real property upon which the manufacturing facility is located or with respect to the personal property located within said facility;

(2)

The applicant proposes to enter into a written agreement with the City fixing the assessment attributable to personal property located within a manufacturing facility, as defined in C.G.S. § 12-81(72), upon such terms and conditions as are provided for herein and therein;

(3)

The applicant must be eligible for the benefits afforded pursuant to the provisions of this section.

(c)

Application procedure.

(1)

All applications shall be submitted to the Danbury Tax Assessor on forms supplied by the Office of the Danbury Tax Assessor. Each such application shall include the applicant's estimate of the value of personal property subject to the fixing of assessment hereunder.

(2)

The Tax Assessor shall review each application and shall forward it to the City Council within thirty (30) days of receipt together with the Assessor's 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.

(3)

Upon receipt of an application and report from the Tax Assessor the City Council shall approve the application, reject the application, or return the application to the Tax Assessor for further information. If an application is rejected, the City Council shall state its reasons for rejection upon the record. The applicant may file a revised application with the Tax Assessor that addresses the reasons for rejection by the City Council.

(4)

In the event of approval, the City Council shall adopt a resolution authorizing the Mayor to enter into an agreement with the applicant, as specified herein.

(d)

Assessment fixing agreement.

(1)

The assessment fixing agreement to be signed by the applicant and the Mayor on behalf of the City shall refer to and incorporate the application as approved by the City Council and shall specify the period of fixing the assessment of such personal property in accordance with the provisions of C.G.S. § 12-65h.

(2)

The assessment fixing agreement shall establish a deadline for the placement of the minimum value of personal property with respect to which the assessment is to be deferred, require certification by the Tax Assessor, as hereinafter set forth, that the owner or lessee has met said deadline and establish the period during which the assessment shall remain fixed. The increase in the assessment on the personal property shall be deferred in accordance with one (1) of the following schedules, as determined by the City Council:

a.

For personal property with a value of not less than three million dollars ($3,000,000.00), the entire increase in the assessment may be deferred each year for a period not to exceed seven (7) years;

b.

For personal property with a value of not less than five hundred thousand dollars ($500,000.00), the entire increase in the assessment may be deferred each year for a period not to exceed two (2) years;

c.

For personal property with a value of not less than twenty-five thousand dollars ($25,000.00), not more than fifty (50) percent of the increased assessment may be deferred each year for a period not to exceed three (3) years.

(3)

In the event that on the date fixed for placement of the minimum value of personal property established by the agreement, the Tax Assessor has denied certification that the personal property has been acquired in accordance with the eligibility criteria as set forth in this section and in accordance with the terms of the assessment fixing 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 a reasonable opportunity to cure, the agreement shall terminate upon written notice, via certified mail, to such owner or lessee. In the event of such termination, other than for failure to place personal property having a value equal to or greater than the minimum established in subsection (d)(2) of this section and in the agreement, the owner or lessee of the property, as herein provided, shall, commencing with the date of notice of termination by the Tax Assessor, be liable for any increase in taxes for which he would have been liable in the absence of such agreement. In the event of such termination for failure to place personal property having a value equal to or greater than the minimum established in subsection (d) of this section and in the agreement, the owner or lessee shall be liable for all taxes on taxable personal property that would have been assessed in the absence of the 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 personal property placement or cure the default, which, for good cause shown, the Tax Assessor may approve, but in no event shall such extension of time exceed a period of one (1) year.

(4)

The assessment fixing agreement shall further provide that the agreement is contingent upon the following conditions:

a.

That the deferral of personal property tax assessment increases shall cease, commencing with the date of notice of termination by the Tax Assessor, if there is any delinquency in the payment of taxes, which is not the subject of a valid and timely appeal, on the real property on which the manufacturing facility is located or on the personal property located within said facility; and

b.

That the deferral of personal property tax assessment increases shall cease, commencing with the date of notice of termination by the Tax Assessor, upon the sale or conveyance of the real property on which the manufacturing facility is located or of the personal property located within said facility unless the new owner or lessee, as the case may be, of such real or personal property shall enter into a new contract with the City incorporating all the terms of the agreement with the former owner or lessee, as herein provided.

(e)

Miscellaneous provisions.

(1)

The Tax Assessor shall have the sole responsibility for determining the value of the personal property subject to the deferral of personal property tax assessment increases hereunder.

(2)

Any agreement entered into pursuant to the provisions of this section shall be recorded on the land records of the City.

(3)

The Tax Assessor is authorized to establish written procedures and technical specifications for the administration of this section.

(Code 1961, § 18-25.2; Ord. No. 605, 1-26-2004)