[Adopted 6-11-1975, effective 7-1-1975; amended in its entirety 10-16-2019]
The Town of New Canaan hereby adopts a program
of tax relief for the elderly or disabled, pursuant to § 12-129n
of the General Statutes of Connecticut, as amended.
A.
Any person who owns real property in the Town of New
Canaan or is liable for the payment of taxes thereon in the Town of
New Canaan and who occupies such real property or unit as such person's
principal residence shall be eligible for tax relief as hereafter
set forth, provided that all of the conditions and restrictions set
forth in § 12-129n of the General Statutes of Connecticut,
as amended, are met.
[Amended 2-12-2020]
B.
Applicants must be either 1) 65 years of age or older,
or whose spouse is 65 years of age or over, or over 60 years of age
and the surviving spouse of a taxpayer qualified under this section
at the time of his or her death, or 2) under 65 years of age and eligible
to receive permanent total disability benefits under Social Security
or comparable program. Age shall be determined as of the close of
the preceding calendar year.
C.
Applicants must have had, as applicable, in the last
concluded calendar year an income not exceeding $ 70,000. This income
shall be construed as adjusted gross income as defined by the Internal
Revenue Service, plus 100% of Social Security benefits and all nontaxable
income.
D.
Applicants must have been a resident of the Town of
New Canaan for one year immediately preceding receipt of benefits,
and must have paid the full amount due in the year previous to the
first application.
E.
Applicants must have applied for and accepted any
real property tax relief from the State of Connecticut that may be
available to such taxpayer under the provisions of the Connecticut
General Statutes for the year of application.
F.
The subject property must be the principal residence
of the applicant, which shall mean, for purposes hereof, occupancy
of the property by the applicant for at least 183 days of the fiscal
year for which tax relief is claimed. The subject property must also
be the only real property owned by the applicant and his or her spouse.
An applicant shall not have more than $500,000 in financial assets
(such as cash, stocks, bonds, commodities, and ownership interests
in LLCs or other companies).
G.
Failure to confirm eligibility by presenting such
relevant documentation as may be required by the Assessor without
good and reasonable cause shall result in disqualification for benefits
hereunder.
H.
The value of the subject property cannot exceed the
average sale price of all residential properties sold in the Town
of New Canaan during the previous tax year, as determined by the Town's
Tax Assessor.
A.
Subject to the provisions of Subsection C, persons who otherwise qualify for real property tax relief under this article may receive a real property tax credit in accordance with the following income schedule:
|
Annual Income
|
Tax Credit
| |
|---|---|---|
|
$0 to $19,999
|
Single $2,800 Couple $3,300
| |
|
$20,000 to $29,999
|
Single $2,300 Couple $2,800
| |
|
$30,000 to $39,999
|
Single $2,050 Couple $2,300
| |
|
$40,000 to $49,999
|
Single $1,450 Couple $1,700
| |
|
$50,000 to $59,999
|
Single $1,200 Couple $1,500
| |
|
$60,000 to $70,000
|
Single $1,000 Couple $1,250
|
|
Such schedule sets forth the maximum income
allowable during the calendar year immediately preceding the year
in which application is made for the tax relief provided in this article.
|
B.
In addition to the real property tax credit available under Subsection A, a qualified applicant, as defined in § 57-2, may request deferral of real property taxes on the following conditions:
(1)
The
amount of the real property tax relief available to a qualifying taxpayer
shall be determined by application of the following formula: (normal
tax on qualified assessed value times tax relief factor), minus state
tax relief, minus tax relief adjustment. The tax relief factor shall
be the applicant's fractional share in the following circumstances:
in any case where title to the real property is recorded in the name
of the applicant and/or his/her spouse and any other person or persons,
the tax relief granted herein shall be prorated to reflect the fractional
share of such applicant and/or spouse; and, furthermore, if such property
is a multiple-family dwelling, such relief shall be prorated to reflect
the fractional portion of such property occupied by the applicant.
(2)
Tax
deferral is available only on the first 75% of the net tax bill of
the property.
(3)
At least
a minimum of 25% of the normal tax and interest on the amount of the
deferral shall be due and payable.
(4)
The
interest rate is to be calculated at 4% and shall be subject to adjustment
at the time of the Town's revaluation process.
(5)
Property
owners electing to take a tax deferral must consent to accepting a
lien on the property to cover the deferral plus accrued interest.
If expenses are incurred to collect the lien, the Town shall be entitled
to any legal costs allowed by law.
(6)
The
amount of the total accrued deferral, at any point in time, cannot
exceed the assessed value of the property.
(7)
Tax
deferral granted under this article shall be in each case for a maximum
term of one year only. A complete and timely application shall be
required for each subsequent year of claimed eligibility.
(8)
Upon
conveyance of the subject property or the death of the qualified taxpayer,
the tax credit or deferral of tax payments shall cease. The current
year's tax credit or deferral shall be adjusted pro rata. Any property
lien for current or prior years' deferred taxes and interest thereon
shall become due and payable immediately upon conveyance or death.
C.
The total amount of tax relief provided under this
program in each year shall be capped at 1/2 of 1% of the amount to
be raised by taxation. In any year in which the total amount of tax
relief for eligible applicants would exceed the cap, then the total
benefits shall be reduced and the tax relief shall be provided to
eligible applicants on a pro rata basis.
D.
A committee shall be appointed by the Chairman of
the Town Council every two years to reassess the real property tax
credit and deferral programs.
In order to receive any property tax relief provided for by this article, each person who claims to be qualified shall file an application between January 1 and May 15 with the Assessor of the Town of New Canaan. Such application shall be on a form prescribed by the Assessor and shall set forth the basis for qualification. If the Assessor finds such applicant to be qualified, the Assessor shall grant such application, subject to the provisions of § 57-3C, provided that the applicant must reapply each year.
If at any time it is found and determined by
the Assessor of the Town of New Canaan that any person who has been
granted tax relief under this article no longer meets the requirements
therefor, the Assessor shall thereupon issue a certificate of error
to the Tax Collector removing such tax relief in full on the applicable
Grand List. If at any time it shall come to the attention of either
the Tax Collector or the Town Clerk of the Town of New Canaan that
the requirements therefor of any person receiving the benefits hereunder
are no longer met, the Tax Assessor shall be notified forthwith. If
any person entitled to the tax relief pursuant to this article transfers,
assigns, grants or otherwise conveys the property on which the tax
relief is granted, no additional tax relief shall be allowed for his
or her interest in the property commencing after the date of the conveyance
of the property, provided further that the new owner of such property
shall pay the Town a prorated share of the tax relief as provided
by § 12-129b(d) of the Connecticut General Statutes, as
amended.
The Assessor of the Town of New Canaan shall
notify the Tax Collector, on appropriate forms, of the total grant
to be given to each person for tax relief under the provisions of
this article, and a copy of the grant computation shall be provided
to each qualifying person.
The Assessor of the Town of New Canaan shall
annually prepare a certified list of all persons whom the Assessor
shall find to be eligible for tax relief under this article, copies
of which shall be filed annually in the Tax Assessor's office and
the Town Clerk's office by the Assessor upon completion of the applicable
Grand List.
The property tax credit provided by this article
shall not result in a lien against the property in an equivalent amount
except as required by § 12-129n of the General Statutes
of Connecticut, as amended.
Any person aggrieved by the decision of the
Assessor as to tax relief under this article may appeal to the Board
of Assessment Appeals, in accordance with the provisions of §§ 12-111
and 12-112 of the General Statutes of Connecticut, as amended.
This article, as amended, shall be effective
with respect to real property taxes relating to the Grand List of
each year commencing with the year beginning October 1, 2019.
