(a) As used in this section: (1) “Residential property” means (A) a building containing three or fewer dwelling units used for human habitation, the parcel of land on which such building is situated and any accessory buildings or other improvements located on such parcel, (B) a condominium, as defined in section 47-68a, that is used for residential purposes, or (C) a common interest community, as defined in section 47-202; (2) “community supporting organization” means an organization that is (A) exempt from taxation pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, and (B) organized solely to support municipal expenditures for public programs and services, including public education; and (3) “municipality” means any town, city or borough, consolidated town and city or consolidated town and borough.

(b) (1) Upon approval, on or before October first of each year, by a municipality's legislative body, or in any town in which the legislative body is a town meeting, by the board of selectmen, any municipality may provide a residential property tax credit for the following fiscal year in accordance with the provisions of this section. The municipality shall determine the amount of such tax credit, except that such amount shall not exceed the lesser of (A) the amount of property tax owed, or (B) eighty-five per cent of the amount of voluntary, unrestricted and irrevocable cash donations made by or on behalf of the owner of a residential property located in the municipality to a community supporting organization during the calendar year preceding the year in which an application for such tax credit is filed. The municipality may include in any such approval a residency requirement or other requirement the municipality deems necessary or desirable. Any grant amounts received by a municipality from the designated community supporting organization pursuant to subsection (c) of this section shall be subject to municipal appropriation and expenditure.

(2) Upon approval of a tax credit under subdivision (1) of this subsection, the owner of a residential property located in the municipality or a person on behalf of such owner may make a voluntary, unrestricted and irrevocable cash donation or donations to the community supporting organization designated pursuant to subsection (c) of this section.

(c) Any municipality that approves a tax credit pursuant to subdivision (1) of subsection (b) of this section shall designate a single community supporting organization to receive cash donations that will qualify for such tax credit. The chief executive officer of such municipality shall enter into an agreement with such designated community supporting organization that requires (1) the designated community supporting organization to only accept voluntary, unrestricted and irrevocable cash donations, (2) the community supporting organization to provide, on or after July first but not later than July thirty-first of each fiscal year for which the tax credit has been approved, a grant to the municipality in an amount equal to all cash donations received during the prior fiscal year and a written statement of all cash donations received during such prior fiscal year, including the name and residential address of each donor, the name and residential address of the owner of the residential property if the donation was made on behalf of such owner and the date each such donation was received, (3) the municipality to provide, not later than December thirty-first following the close of a fiscal year in which the community supporting organization paid a grant to the municipality pursuant to subdivision (2) of this subsection, a written statement to the designated community supporting organization of the municipal programs and services supported by such grant, (4) the municipality to serve as the administrative and fiscal agent for the designated community supporting organization. The municipality may retain and expend an amount of not more than fifteen per cent of the total amount of the grant received during a fiscal year as the reasonable costs of providing such service as the administrative and fiscal agent, and (5) the designated community supporting organization to provide a contemporaneous written receipt to a donor of a voluntary, unrestricted and irrevocable cash donation.

(d) (1) A taxpayer that has made a voluntary, unrestricted and irrevocable cash donation pursuant to subdivision (2) of subsection (b) of this section may file an application for the tax credit under this section with the tax collector of the municipality in which the residential property is located. No tax credit under this section shall be allowed unless the taxpayer or an authorized agent of the taxpayer files the application on or after January first and prior to April second prior to the fiscal year for which such tax credit is being claimed.

(2) Each such applicant shall include evidence satisfactory to the tax collector of the total amount of such donations made during the preceding calendar year to a community supporting organization and an affidavit, on a form prescribed by the Secretary of the Office of Policy and Management, affirming that such donations were made in cash and were voluntary, unrestricted and irrevocable.

(e) Upon the receipt of all information required under subsection (d) of this section, the tax collector shall apply the residential property tax credit, subject to any limitations set forth by the municipality in the authorizing ordinance, to the residential property tax due and payable for the fiscal year for which the application was received.

(f) No taxpayer may use a cash donation made pursuant to subdivision (2) of subsection (b) of this section to claim a tax credit with respect to more than one fiscal year. Any taxpayer who knowingly submits a false record or knowingly makes a false affidavit to claim the tax credit under this section shall be fined not more than five hundred dollars and shall refund to the municipality the entire amount of the tax credit improperly received.

(P.A. 18-49, S. 10.)

History: P.A. 18-49 effective July 1, 2018.