[Added 2-6-2012 by Ord. No. 03-12; amended 6-4-2012 by Ord. No.
13-12]
The City hereby enacts tax relief for the elderly eligible residents
of the City for the fiscal year commencing July 1, 2012, on the terms
and conditions provided herein. Unless otherwise stated, tax relief
shall refer to all programs in this article.
A.
Requirement. Before any tax relief shall be given, such person must
first have applied and qualify for tax relief under any other state
statute under which he or she is eligible. Applicants cannot combine
or receive tax relief under more than one of the following local programs.
B.
Must be eligible. The application for tax relief under this article
shall have been made by such person after he or she has become eligible
to apply therefor.
C.
Reimbursement.
(1)
Credit. If any person with respect to whom a claim for tax relief
in accordance with this section has been approved for any assessment
year transfers, assigns, grants or otherwise conveys, subsequent to
the first day of October but prior to the first day of August in such
assessment year, the interest in real property to which such claim
for tax relief is related, regardless of whether such transfer, assignment,
grant or conveyance is voluntary or involuntary, the amount of such
tax relief benefit, determined as the amount by which the tax payable
without benefit of this section exceeds the tax payable under the
provisions of this section, shall be a pro rata portion of the amount
otherwise applicable in such assessment year to be determined by a
fraction, the numerator of which shall be the number of full months
from the first day of October in such assessment year to the date
of such conveyance and the denominator of which shall be 12. If such
conveyance occurs in the month of October, the grantor shall be disqualified
for such tax relief in such assessment year. The grantee shall be
required, within a period not exceeding 10 days immediately following
the date of such conveyance, to notify the Assessor thereof, or in
the absence of such notice, upon determination by the Assessor that
such transfer, assignment, grant or conveyance has occurred, the Assessor
shall determine the amount of tax relief benefit to which the grantor
is entitled for such assessment year with respect to the interest
in real property conveyed and notify the Tax Collector of the reduced
amount of such benefit. Upon receipt of such notice from the Assessor,
the Tax Collector shall, if such notice is received after the tax
due date in the municipality, no later than 10 days thereafter mail
or hand a bill to the grantee stating the additional amount of tax
due as determined by the Assessor. Such tax shall be due and payable
and collectible as other property taxes and subject to the same liens
and processes of collection, provided such tax shall be due and payable
in an initial or single installment not sooner than 30 days after
the date such bill is mailed or handed to the grantee and in equal
amounts in any remaining, regular installments as the same are due
and payable.
(2)
Deferral. Deferral lien will be required to be paid upon the death
of the recipient, conveyance of the real property subject to such
tax deferral, or when the real property subject to such tax deferral
is no longer the recipient's primary residence. The Assessor will
notify the Tax Collector upon verification that the applicant is no
longer eligible. Repayment is due no later than 60 days from the Tax
Collector's written request.
D.
Reimbursement upon death. All benefits shall be reimbursed to the City upon the death of the recipient or conveyance of the real property subject to taxation in accordance with Subsection F of this section.
E.
No delinquent taxes. There must be no delinquent taxes on the real
property as of the close of the application period (May 15). This
will apply to new applicants and at the time of renewal. Current participants
will not be grandfathered.
F.
Residency.
(1)
Such person shall have owned real property in the City for at least
one year prior to the start of receiving benefits, i.e., July 1, per
C.G.S. § 12-129n, and shall have paid real estate taxes
on a residence to the City for a period of one year per C.G.S. § 12-129n,
prior to his or her application for tax relief.
(2)
The real property for which the exemption is claimed must be the
legal domicile of such person, and such person shall be present in
residence therein for at least 183 days in each grand list year for
which the exemption is claimed. Such claim for exemption shall be
for one residence only.
(3)
Either spouse shall have resided within this state for at least one
year before filing a claim under this section.
(4)
In any case where title to the real property is recorded in the name
of the taxpayer or his spouse and/or any other person or persons,
the tax relief granted herein shall be prorated to reflect the fractional
share of such taxpayer or spouse; and, furthermore, if such property
is occupied as a multiple-family dwelling, such relief shall be prorated
to reflect the fractional portion of such property occupied by the
taxpayer. Any homeowner qualified for tax reduction shall in no event
receive less in tax credit than the minimum amount.
The tax credit for real property as provided herein shall apply
only to the residence itself, the lot on which the residence is located
and the improvements thereon. Only that portion of the lot equal to
the minimum zoning requirement where the lot is situated shall receive
tax credit.
A.
Any eligible taxpayer, or his or her authorized agent, shall file
an application for tax relief under this article with the Tax Assessor
of the City, between February 1 and through May 15 on a form prescribed
and furnished by the City. In making such application, the taxpayer
shall present to the Tax Assessor a copy of his or her federal income
tax return for the previous calendar year, or if not required to file
a return, such other evidence of qualifying income which the Tax Assessor
may reasonably require to establish compliance with the income qualifications
provided in this article. The applicant, or his or her authorized
agent, shall sign a sworn affidavit, in the presence of the Tax Assessor
or a member of the Tax Assessor's staff, affirming the accuracy of
the statements in the application.
B.
When the Tax Assessor is satisfied that the applying taxpayer is
entitled to tax relief under this article, he shall compute the amount
of such tax relief or tax deferral and cause a certificate of tax
credit to be issued in such form as to permit the Tax Collector to
reduce the amount of tax levied against the taxpayer and make proper
record thereof, and a copy thereof shall be delivered to the applicant.
The tax credit shall be applied proportionately to the tax payments.
C.
Any person aggrieved by the decision of the Tax Assessor may appeal
to the Board of Assessment Appeals in accordance with the provisions
of C.G.S. §§ 12-111 and 12-112.
D.
Affidavits, applications or other documents presented in support
of the application for tax relief shall not be open for public inspection
and shall not be disclosed except in case of an appeal or in connection
with claims of fraud to the proper authorities.
As provided under C.G.S. § 12-129n, any person who
owns real property in the City or who is liable for the payment of
taxes thereon under C.G.S. § 12-48 and occupies that property
as his or her own principal residence, shall be eligible for the real
property tax relief set forth in this article, provided all of the
following conditions are met:
A.
Age. Applicants must be:
(1)
Sixty-five years of age and over, or whose spouses, living with them,
are 65 years of age or over or 60 years of age or over and the surviving
spouse of a taxpayer qualified in such municipality under this section
at the time of his or her death or with respect to real property on
which such residents or their spouses are liable for taxes under C.G.S.
§ 12-48; or
(2)
Under age 65 and eligible in accordance with applicable federal regulations
to receive permanent total disability benefits under social security,
or have not been engaged in employment covered by social security
and accordingly have not qualified for benefits thereunder, but have
become qualified for permanent total disability benefits under any
federal, state or local government retirement or disability plan,
including the Railroad Retirement Act and any government-related teacher's
retirement plan, in which requirements with respect to qualifications
for such permanent total disability benefits are comparable to such
requirements under social security.
B.
Income. The purpose of this article is to provide tax relief based
upon the total income available to the applicant(s) in the home without
regard to the exclusion of certain income or to certain deductions
which might otherwise be allowable by the Internal Revenue Service
Code of 1986, as may be amended from time to time. Such person(s)
shall have individually, if unmarried, or jointly, if married, qualifying
income in an amount not to exceed limits described below for the tax
year ending immediately preceding the application for tax relief benefits.
Accordingly, qualifying income is defined as set forth below.
(1)
"Income" is the total income in the home shown on Line 22 of the
current IRS Form 1040 (or Line 15 of the current IRS Form 1040A) plus
nontaxable income received from social security plus federally tax
exempt interest or other income and includes income paid to or given
to the applicant or his or her eligible spouse by persons living in
the home.
(2)
In determining the total income in the home there shall be no allowance
for:
(a)
Business losses in excess of business gains (current IRS Form
1040 Schedule C or Schedule C-EZ);
(b)
Losses in excess of gains on current IRS Form 1040 Schedule
E (Page 1, line 17) (rental real estate, royalties, partnerships,
S corps, trusts, etc.); and/or
(c)
Negative income on current IRS form, Line 21.
(3)
The reference to current IRS forms shall include comparable data
as contained in any revised IRS forms.
(4)
Where an applicant does not file an IRS form, the information used
to calculate total income in the home, shall be the information which
would have been included on an IRS form, had one been filed, i.e.,
SSA-1099; 1099-Div.; 1099-Int.; 1099-R; etc.
(5)
In the event of a question with respect to income or a claimed exemption
of income, or deduction from income, not specifically referred to
in this section, the Assessor shall make a determination based upon
the purpose of this article. Any dispute on this section, or any other
section, may be appealed to the Board of Assessment Appeals.
C.
Local option tax credits. All applicants who make up to $5,000 more
than the maximum income requirements under the State of Connecticut
Elderly and Totally Disabled Tax Relief Program, and adjusted annually,
may apply for a Local City of Middletown Option. The income guidelines
may change annually based on the income levels declared by the State
Department of Office of Policy and Management and Intergovernmental
Policy Division as provided under C.G.S. § 12-170aa.
(1)
Qualified married applicants shall be entitled to the lesser of 5%
of the current net property taxes, or a maximum City property tax
credit of $200, or a minimum property tax credit of $100 unless otherwise
entitled to a property tax credit through the State Office of Policy
and Management and Intergovernmental Policy Division as provided under
C.G.S. § 12-170aa.
(2)
Qualified unmarried applicants shall be entitled to the lesser of
5% of the current net taxes, to a maximum City property tax credit
of $150, or minimum credit of $50 unless otherwise entitled to a property
tax credit through the State Office of Policy and Management and Intergovernmental
Policy Division as provided under C.G.S. § 12-170aa.
(3)
Any applicant who qualifies for a property tax credit through the
State Office of Policy and Management and Intergovernmental Policy
Division as provided under C.G.S. § 12-170aa shall receive
a minimum city property tax credit of $50.
D.
Local option tax deferral.
(1)
The benefit shall be up to 100% of tax due less amounts received
under state elderly tax relief programs.
(3)
The amount of such tax deferral, plus interest calculated at the
rate of 1 1/2% of such tax for each month or fraction thereof
which elapses from the time when such tax becomes due and payable
until the same is paid, shall be recorded on the land records of the
City and shall constitute a lien on the property. Any such lien shall
have a priority in the settlement of such person's estate.
(4)
Total deferments plus interest for all years shall not exceed the
assessed value of the real property.
As provided under C.G.S. § 12-170v, which authorizes
municipalities to freeze taxes for qualifying seniors, any person
who owns real property in the City or who is liable for the payment
of taxes thereon under C.G.S. § 12-48 and occupies that
property as his or her own principal residence, shall be eligible
for the real property tax relief set forth in this article, provided
all of the following conditions are met:
A.
Age. On December 31 of the calendar year preceding the year in which
a claim is filed, be:
(1)
Seventy years of age or over;
(2)
The spouse of a person, 70 years of age or over, provided such spouse
is domiciled with such person; or
(3)
Sixty-two years of age or over and the surviving spouse of a taxpayer
who at the time of such taxpayer's death had qualified and was entitled
to tax relief under this section, provided such surviving spouse was
domiciled with such taxpayer at the time of the taxpayer's death.
B.
Income.
(1)
The taxable and nontaxable income of such taxpayer, the total of
which shall hereinafter be called "qualifying income," in the tax
year of such homeowner ending immediately preceding the date of application
for benefits under the program in this section, was not in excess
of limits set forth in C.G.S. § 12-170aa, as adjusted annually,
evidence of which income shall be submitted to the Assessor in the
municipality in which application for benefits under this section
is filed in such form and manner as the Assessor may prescribe. The
amount of any Medicaid payments made on behalf of such homeowner or
the spouse of such homeowner shall not constitute income. The income
of the spouse of such homeowner shall not be included in the qualifying
income of such homeowner for purposes of determining eligibility for
tax relief under this section, if such spouse is a resident of a health
care or nursing home facility in this state, and such facility receives
payment related to such spouse under the Title XIX Medicaid program.
(2)
Each applicant shall sign an affidavit (City application) and IRS
Form 4506, allowing the City to verify the prior two years' tax returns,
certifying that the information provided with respect to such applicants'
total income in the home is true and accurate to the best of the knowledge
of the applicant.
(3)
The taxpayer may have no more than $125,000 in assets, excluding
the residence for which relief is sought.
C.
Change of assessment. In the event that the applicant shall make
improvements to his property resulting in an increase in his assessment,
an amount calculated by multiplying the increase in taxpayer's assessment
attributable to the improvement by the mill rate in effect in the
year such reassessment takes place shall be added to the freeze amount
then applicable to obtain a revised freeze amount which will be the
freeze amount for subsequent assessment years.
D.
Effective date. The tax freeze pursuant to this section shall take
effect with the next tax bill.
[Amended 3-3-2014 by Ord. No. 04-14]
