Tax Incentive Program

ADOPTED : January 5, 2004

Section 1—PURPOSE

In an effort to attract, retain and expand businesses, the Town of Wethersfield has adopted this tax incentive policy in accordance with Connecticut General Statutes 12-65b and 12-65h (as amended). This policy establishes a tax incentive program for the Town and allows the Town to enter into written agreements with the owners and/or lessees of certain real property located within the Town Wethersfield in order to fix tax assessments of real and/or personal property in the manner set forth by this policy.

Section 2—ELIGIBILITY

  1. In accordance with the provisions of CGS 12-65b the Town Council MAY enter into written tax agreements with owners and/or lessees of real and/or personal property if the improvements are for one of the following:
    1. Manufacturing use
    2. Office Use
    3. Retail Use
    4. Storage, warehouse or distribution use
    5. Structured multilevel parking use necessary with a mass transit system
    6. Information Technology
    7. Recreation Facilities
    8. Transportation Facilities
    9. Permanent Residential Use
    10. Transient Residential Uses.
  2. Only legally existing uses, businesses relocating to the Town, new business development and business expansion listed in Section 2A above and located within a district zoned for such purposes by the Planning and Zoning Commission are eligible to participate in a tax incentive program under this policy. Home occupations (as defined by the Wethersfield Zoning Regulations), and all other land uses are not eligible to participate in a tax incentive program under this policy.
  3. Only manufacturing facilities, as defined in subdivision (72) of CGS section 12-81 are eligible to participate in the benefits authorized under CGS 12-65h.

Section 3—ABATEMENT SCHEDULE

The Town Council may enter into a tax agreement with any party owning or proposing to acquire an interest in real property in the Town of Wethersfield fixing the assessment of the real property which is the subject of the Agreement and all improvements thereon or therein and to be constructed thereon or therein, subject to the cost of the project improvements exceeding the following thresholds:

Tax Abatement Schedule under CGS 12-65b

Cost of Improvements Abatement Term
$5 Million+ Up to 30% of Increased Assessment Up to 7 years
$3 Million+ Negotiable Up to 7 years
$3 Million+ Up to 20% of Increased Assessment 5 to 7 years
$500,000+ Negotiable Up to 2 years
$500,000+ Up to 30% of Increased Assessment Up to 3 years
$100,000+ Up to 20% of Increased Assessment Up to 3 years
$25,000+ Up to 50% of Increased Assessment Up to 3 years

This table lists the minimum value of an improvement that qualifies a project for an abatement, the maximum abatement amount and the maximum abatement period. The Town Council shall determine the specific abatement for each project based upon the benefits to the Town.

Tax Abatement Schedule under CGS 12-65h (Manufacturing Facility)

Increase in Assessed Value Personal Property Abatement Term
$3 Million 100% Not more than 7 years
$500,000+ 100% Not more than 2 years
$25,000+ Not more than 50% Not more than 3 years

Section 4—GENERAL REQUIREMENTS

  1. The Town Council may enter into a tax agreement under this policy only if the agreement will:
    1. Cause a business to locate in the Town, or
    2. Cause a business to replace, construct, expand or remodel existing buildings, or
    3. Cause a business to construct new buildings, or
    4. Cause an increase in employment opportunities, or
    5. Cause a substantial investment in new equipment or other personal property subject to taxation, or
    6. Preserve existing employment opportunities.
  2. If the applicant is a tenant or if an owner is applying on behalf of a tenant, tax benefits shall be reflected in the lease and shall be so demonstrated to the Town. Any such lease shall be for a term which is at least as long as the tax benefit period.

Section 5—APPLICATION PROCEDURE

  1. Any eligible owner and/or lessee may apply under this policy in writing to the Economic Development Manager on application forms provided by the Planning & Economic Development Office. The applicant shall provide all required information in sufficient detail to allow the Town to determine costs and benefits associated with the implementation of a requested tax agreement.
  2. Upon receipt of the completed application the Economic Development Manager shall refer the application to the Tax Incentive Program Review Committee which shall consist of 5 (five) members as follows: The Town Manager, Finance Director, Assessor, Economic Development Manager and designee from the Economic Development and Improvement Commission. Each application shall be reviewed on a case-by-case basis. After thorough review, and within thirty (30) days of receipt of the application the recommendation, along with a written analysis, shall be referred to the Town Council.
  3. The Town Council, in its sole discretion, shall either approve, approve with modifications or conditions or deny the application within 35 days from the date of the first regularly scheduled meeting at which the referral appears on the Council's agenda.. Granting of the tax abatement shall be subject to a majority vote of the Town Council. The Council's decision shall be based upon the Connecticut General Statutes, the information provided in the application package, the recommendation from the Tax Incentive Program Review Committee and Section 4(A) of this document.

Section 6—AGREEMENT

  1. Pursuant to the Council's decision the Town will enter into a written agreement with the owner or lessee of real property, fixing the assessment of the real or personal property for the terms of the agreement.
  2. After approval of any such tax agreement, construction shall commence within twelve (12) months and shall be completed within twenty-four (24) months. In the event that construction is not commenced and/or completed within the specified time frame, then any agreement entered into pursuant to this policy shall immediately terminate and the full amount of the tax (including accrued interest) that would otherwise be due shall immediately become due and payable, unless alternative arrangements are authorized by the Town Council.
  3. If an applicant fails to comply with the payment of taxes upon the due date required , then any agreement entered into pursuant to this program shall immediately terminate and the full amount of the tax including accrued interest that would otherwise he due shall immediately become due and payable.
  4. Any person or firm who is delinquent in any taxes, interest or liens (including water and sewer user fees) that are due to the Town shall be ineligible to enter into any such tax agreement under this policy until such delinquencies or liens are remedied.
  5. Any tax assessed and levied upon motor vehicles shall not be subject to any such agreement pursuant to this program and shall remain due and owing.
  6. Any applicant requesting a personal property tax incentive must commit to remain in the Town for a period of two (2) times the length of the incentive that may be granted. If the taxpayer shall cease to do business or move from the Town within such period all taxes that would have been due shall become due retroactive to the due date of the taxes deferred, and any delinquencies shall carry interest as if the taxes had not been deferred.

Section 7—TRANSFERABILITY

Any tax agreement entered into pursuant to this policy shall not be subject to assignment, transfer or sale without the consent of the Town Council. In the event that any such agreement is assigned, transferred or sold without the Council's consent, then the agreement shall terminate, as of the effective date of assignment, transfer or sale and the full amount of the tax that would otherwise be due to the Town of Wethersfield shall immediately become due and payable.

Section 8—TOWN COUNCIL AUTHORITY

Nothing in this policy shall require the Town Council to enter into a tax agreement.

Section 9

This policy shall not be retroactive.

Additional Links

Contact Information

Peter Gillespie, Director of Planning & Economic Development
Denise Bradley, Assistant Planner

Address: 505 Silas Deane Highway

Phone: (860) 721-2837
Fax: (860) 721-2843
Office Hours: Mon.–Wed. 8 a.m. to 4:30 p.m., Thurs. 8 a.m. to 6 p.m., Fri. 8 a.m. to 1 p.m.