Connecticut SB 363: AN ACT ALLOWING MUNICIPALITIES TO IMPOSE COMMERCIAL VACANCY ASSESSMENTS IN CERTAIN DISTRICTS.

Bill Text

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General Assembly Substitute Bill No. 363
February Session, 2026

AN ACT ALLOWING MUNICIPALITIES TO IMPOSE COMMERCIAL
VACANCY ASSESSMENTS IN CERTAIN DISTRICTS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. (NEW) (Effective October 1, 2026, and applicable to assessment 1
years commencing on or after October 1, 2026) (a) As used in this section: 2
(1) "Active renovation" means construction or repair work lasting not 3
less than ninety consecutive days and undertaken pursuant to an 4
approved building permit; 5
(2) "Municipality" has the same meaning as provided in section 7-148 6
of the general statutes; and 7
(3) "Vacant" means not occupied or actively used for greater than one 8
hundred eighty days, consecutive or nonconsecutive, in an assessment 9
year. 10
(b) Any municipality may, by vote of its legislative body, or, in a 11
municipality where the legislative body is a town meeting, its board of 12
selectmen, adopt an ordinance imposing an assessment on any real 13
property that is (1) vacant, (2) located in a zone that allows for 14
commercial use and not used for any residential purpose, (3) located at 15
ground level, if such real property is part of a building or structure 16
containing two or more levels, and (4) located in a defined area adopted 17

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by the municipality in which such assessment is applicable. Such 18
assessment shall be at a rate determined by the municipality, provided 19
such rate does not exceed five dollars per square foot for any assessment 20
year during which such property remains vacant. 21
(c) Notwithstanding the provisions of subsection (b) of this section, 22
no assessment shall be imposed on real property pursuant to this section 23
if: 24
(1) The owner of such real property is engaged in active renovation 25
of the property, or a permit application concerning such property is 26
pending; 27
(2) The owner identifies specific legal or regulatory barriers, 28
including pending litigation, environmental reviews or permitting 29
delays that have prevented occupancy or use of the real property during 30
the preceding assessment year; or 31
(3) Such real property has been impacted by a natural disaster, or is 32
deemed uninhabitable by state or local authorities. 33
(d) If a municipality adopts an ordinance imposing an assessment on 34
vacant real property pursuant to this section, such municipality shall 35
specify the form and manner of application for any owner of such 36
property to claim an exemption from such assessment pursuant to 37
subsection (c) of this section. 38
(e) Any assessment on real property pursuant to this section shall be 39
due and payable on the same date as real property taxes collected 40
pursuant to chapter 204 of the general statutes. Any such assessment 41
may be appealed pursuant to the provisions of section 12-111 of the 42
general statutes. 43
(f) Any assessment collected pursuant to this section shall be 44
deposited into a fund established by the municipality. Such fund shall 45
be used solely for infrastructure improvements, the remediation of 46
blight or the promotion of development in the area defined by the 47

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municipality pursuant to subdivision (4) of subsection (b) of this section. 48
The proceeds of such fund shall not be used for operating expenses of 49
any kind or be considered a part of the municipal general fund. 50
Expenditures from such fund shall be authorized in the same manner as 51
any other capital expenditure of the municipality. Any income earned 52
by any moneys on deposit in such fund shall accrue to the fund. 53
This act shall take effect as follows and shall amend the following
sections:

Section 1 October 1, 2026, and
applicable to assessment
years commencing on or
after October 1, 2026
New section

Statement of Legislative Commissioners:
Subdiv. (a)(1) was rewritten for clarity; in Subdiv. (b)(2), "zoned" was
changed to "located in a zone that allows", for accuracy; in Subdiv. (b)(4),
"identified" was changed to "adopted", for accuracy, and "in which such
assessment is applicable" was added for clarity; and in Subdiv. (c)(2), "or
use" was added after "occupancy", for accuracy.

PD Joint Favorable Subst.