The Assessor’s Office is mailing income and expense statements to owners of commercial and industrial real estate in April in preparation for the 2021 Grand List revaluation. Pursuant to Connecticut General Statutes Sec. 12-63c, these forms are mailed annually by April 15th and are due back to the Assessor’s Office by June 1st.
The Assessor will use the information received to develop valuation methodology for commercial and industrial real estate assessments in the next revaluation. The income information requested is essentially rent, although miscellaneous income, such as laundry income in an apartment complex, may also be relevant. Business income, such as sales of manufactured goods or retail income, is not requested and is generally not relevant to the valuation of the real estate.
Expense information requested includes utilities costs, insurance premiums, snow plowing, garbage collection, and legal and advertising expenses – all expenses necessary to support the rent for the real estate. Expense information requested does not include business expenses, such as retail employee salaries or inventory purchases – expenses that are not generally relevant to the valuation of the real estate.
CGS Sec.12-63c requires owners of rental real estate to submit this information or incur a 10% assessment penalty. Although owners of commercial property whose space is primarily owner-occupied may not be subject to the assessment penalty, to avoid future requests, the assessor’s office asks that such owners simply return the form with the “owner-occupied” box checked. Information received is exempt from the Freedom of Information Act and will be treated confidentially.
The Assessor may grant a 30-day extension to owners who may have difficulty meeting the June 1st deadline. An extension request must be submitted in writing prior to May 1st.