Connecticut Property Tax

Each of the 169 towns in the State of Connecticut is empowered to assess and collect property taxes. The powers of the towns are defined and limited by State law.

Property Subject to Tax

Real property, motor vehicles, and certain other tangible personal property are subject to property tax. With respect to tangible personal property, “[a]ll goods, chattels and effects or any interest therein, including any interest in a leasehold improvement classified as other than real property” is subject to taxation, except that certain computer software and aircraft are not taxable.
 

As a practical matter, the taxation of tangible personal property is limited to business property, with the exception of motor vehicles, snowmobiles and horses. There are exemptions from property tax for a variety of household furniture, furnishings, books, musical instruments, jewelry and wearing apparel of individuals. In addition, boats are exempt from personal property taxation under Section 12-81(64). This section exempts “vessels,” broadly defined under Section 15-127 as “every description of watercraft, other than a seaplane on water, used or capable of being used as a means of transportation on water.” While not subject to personal property taxation, pursuant to Section 15-144 owners of vessels pay an annual registration fee with the Department of Motor Vehicles, the proceeds of which are allocated to a boating fund that is distributed annually to municipalities. This annual fee ranges from $7.50 to $525 depending on the length of the vessel and subject to certain exceptions. Each town assessor maintains current records of the ownership of all real property in the town and the Commissioner of Motor Vehicles provides a list of motor vehicles registered in Connecticut and certain other information to each town assessor.

1. Assessment Rate

Under Section 12-62a(b), each municipality is required to assess all property at a uniform rate of 70% of its present true and actual value, which generally means fair market value. Section 12-63. Motor vehicles are assessed at 70% of their average retail value.

2. Declaration of Personal Property

A taxpayer must file an annual declaration of the tangible personal property owned by it as of the October 1 assessment date. Section 12-41 provides that the declaration must include, but is not limited to, the following types of property: machinery used in mills and factories, cables, wires, poles, underground mains, conduits, pipes and other fixtures of water, gas, electric and heating companies, leasehold improvements classified as other than real property and furniture and fixtures of stores, offices, hotels, restaurants, taverns, halls, factories and manufacturers. Such declarations shall not include registered motor vehicles. Section  12-41(b). Accordingly, as indicated above, individuals without business property do not generally file declarations, except that, for example, unregistered motor vehicles must also be declared and assessed in accordance with Section 12-71d.

The declaration must be filed before the first of November immediately following the October 1 assessment date. An assessor may grant a filing extension of up to 45 days for “good cause.” OPM has prescribed a declaration form for the listing of personal property, and this form is mailed to taxpayers with instructions for completion.

In most towns a "confidential report" will accompany the declaration on which the taxpayer is required to report the cost of all taxable personal property and the value thereof after certain rates of depreciation specified in the form. Municipalities may adopt multiple depreciation schedules for different types of property as provided in Section 12 63(b). The valuations produced by these depreciation schedules are not binding on the taxpayer or the assessor — i.e., either may assert that the schedules  do not reflect the fair market value of the property. Furthermore, it is important to note that the depreciation values for the property used for federal income tax purposes are a relevant but not controlling evidence of the value of personal property for municipal property tax purposes.

If tangible personal property is located in a town different from its owner’s residence for more than three months during an assessment year, then Section 12-43 specifies which town taxes the property. If property is located in a town on October 1 and has been in that town for at least three months during the assessment year just  ended, then it is taxed by such town; if not, the property is taxed by the town in which it was located for the three months closest to such October 1. If Section 12-43 does not apply to the tangible personal property (i.e., the  property is not located in any town other than its owner’s residence for three months or more during an assessment year), then it is taxed by the municipality where the owner resides.