Tax Abatements/Prorates
REAL ESTATE:
New construction is prorated from the date of the issuance of the Certificate of Occupancy (C/O), or date of discovery in use, whichever is earlier. §12-53a
The assessment cycle runs from October 1st to September 30th annually. If the house was fifty percent complete on October 1st, the following July bill will reflect that amount. If the property is completed after October, for instance on April 20th, then a secondary tax bill would be generated in addition to the July bill to reflect the prorated amount of the building (not the land), and for only that portion above the October amount which is then prorated for the remaining days in service until the end of the cycle (September 30th).
The Town of Vernon, Connecticut recognizes the importance of continued economic growth in our community and has adopted the following tax abatement framework. Projects must be consistent with State Statutes. The Town policy is that projects must involve real property improvements for at least one of the following:
Standard Abatement for Office, Manufacturing, Warehouse, Storage, distribution and IT.
- for office use;
- for manufacturing use;
- for warehouse, storage or distribution use; or
- for information technology; or
- for retail and residential units with restrictions.*
The following abatement schedule will be used by the Town Council as a guideline. The Town Council must act to approve each project and its specific abatement schedule.
Yearly Abatement schedule:
50%, 40%, 25% for projects with Improvement costs greater than $100,000
75%, 50%, 25% for projects with Improvement costs greater than $1,000,000
75%, 75%, 50%, 50%, 25%, 25% for projects with Improvement costs greater than $3,000,000
The value of real property improvements must be greater than $100,000 if the project is for office use, for manufacturing use, for warehouse, storage or distribution use or for information technology uses.
Additional abatements may be considered for projects involving real property improvements greater than Six million dollars.
*Abatements pertaining to Retail establishments will be limited to Exterior facade, landscaping, and parking improvements. These improvements must be in access of $25,000 and meet specific design and sign requirements.
*Abatements pertaining to Residential uses will be limited to improvements that bring existing buildings up to current Fire and/or Building codes. These improvements must be in access of $25,000 and meet specific design, building, and fire codes.
Other uses for which tax abatement is permitted by state statute will not generally be eligible unless the applicant demonstrates that the project will have a special benefit to the community.
Vacant and Blighted Buildings
Tax Abatements for properties that are on the certified blight or vacant list and qualify under our local Ordinance 276.
If the property is improved, then the assessment may be fixed for a period of time and the full amount of the added value placed and taxed at a future date. This is more complicated than simply stated and should be addressed to our Economic Development Coordinator.
Application Procedure
The tax abatement program application should be submitted to the Economic Development Coordinator for consideration and for a recommendation by the Economic Development Commission to the Town Council.
MOTOR VEHICLE:
Motor Vehicles are prorated when they are sold, registered in another state where the resident resides, repossessed, stolen or totaled. See our attached brochure for more specific details and timeline for providing proof to our office for an adjustment.
Certain Commercial Vehicles may qualify for a full exemption. Applications may be obtained in the assessor’s office with specific details.
There are no tax abatements associated with motor vehicles as no local ordinance exists nor do Connecticut General Statutes allow.
PERSONAL PROPERTY:
Connecticut General Statutes do not allow for Personal Property prorates. If the property is in service on October 1st, it is taxed for the full year regardless, even if the business closes it’s door prior to September 30th. In the same vain, if a company goes into business after October 1st, they are not subject to personal property tax until the following assessment cycle.
Manufacturing equipment is subject to an exemption when their annual Personal Property Declaration is filed with the assessor. Qualifying information is supplied to the assessor and reviewed and sent along for OPM to review and approve as well.
Personal Property tax abatements may be permitted as prorates when destroyed by fire or weather-related circumstances. This is determined on a case-by-case basis and submitted to the assessor for review.