Assessment Deferral Application

TOWN OF MADISON TAX INCENTIVE PROGRAM POLICY

Approved by the Economic Development Commission on May 10, 2018
Approved by the Board of Selectmen on May 29, 2018
Revised and Approved by the EDC on May 14, 2020

  1. PURPOSE: The purpose of this policy is to establish a process for the granting of tax incentives in the Town of Madison, pursuant to the authority granted under Connecticut General Statutes Section 12-65b, and to establish eligibility criteria for such incentives.
  2. RESPONSIBILITY: Upon affirmative vote of the Board of Selectmen and Board of Finance, Town Meeting approval shall be required to grant a request for tax incentive described in this Policy.
  3. ELIGIBILITY CRITERIA:Eligibility for tax incentive shall be for at least one of the uses provided for in Connecticut General Statutes Section 12-65b and as it may be revised from time to time. Additionally, proposals requesting a tax incentive shall meet the following criteria:
    1. Result in the contribution of at least an additional two-hundred and fifty dollars ($250,000) in assessed real estate value to the Grand List.
  4. INCENTIVE AWARDS: Tax incentives shall be granted only on the incremental increase in assessed value of the property that is being improved. During construction, the assessment of the property is frozen at pre-construction assessed value. Upon completion of construction, but not more than two years from the effective date of the agreement, a five, seven, or ten year assessment deferral period begins. The duration of the deferral period will be based on the amount of increased assessed value added to the Grand List as determined by the Town of Madison Assessor. Projects ranging from $250,000 to $2.99 million shall be eligible for a five-year deferral, projects ranging from $3 million to $7.99 million shall be eligible for a seven-year deferral, and projects exceeding $8 million in increased assessed value shall be eligible for a ten-year deferral. The recipient of the award may choose between a front loaded phase-in option or a consistent percentage throughout the deferral period as outlined in the Assessment Deferral Phasing Methodology.
  5. PROCEDURE:
    1. The owner shall file an Assessment Deferral Application with the Director of Planning & Economic Development prior to the start of construction, but after approvals through relevant boards and commissions (i.e. Planning & Zoning Commission, Inland Wetlands Agency, Zoning Board of Appeal) have been secured.
    2. Upon receipt, the application shall be forwarded to the Board of Selectmen, the Board of Finance, the Economic Development Commission, the Director of Finance, the Town Assessor, and the Tax Collector.
    3. No earlier than ten (10) days from the commencement of the review process, the request shall be placed on the Board of Selectmen agenda for discussion and possible action.
    4. Upon an affirmative vote by the Board of Selectmen, the request shall then be placed on the agenda of the Board of Finance for discussion and possible action.
    5. Upon an affirmative vote by the Board of Finance, the request shall advance to Town Meeting for a vote.
    6. Upon Town Meeting approval, the Board of Selectmen shall enter into a Tax Incentive Agreement with the recipient which shall detail any award requirements.