OPM: Payment in Lieu of Tax Revenue From Electric Generation Facilities

Payment in Lieu of Tax Revenue from Electric Generation Facilities


Program Description

This program provides a payment in lieu of taxes (PILOT) to towns for tax loss due to a decrease in the value of an electric generation facility as a result of restructuring of the electric industry. The PILOT is for a ten year period beginning with the assessment year (October 1) during which the value of an electric generating facility decreases, but in no event later than October 1, 2005. In the first year, the PILOT payment is equal to one hundred percent of the difference between the value of a facility as it would have been assessed were it not for restructuring and the assessed value of the restructured facility. In the second year and for each assessment year thereafter, the PILOT payment is ten percent less until the percentage is zero.

 

For Further Information, Please Contact:
Shirley Corona: phone (860) 418-6221 - fax (860) 418-6493 - e-mail -  Shirley.corona@ct.gov

 

Program Objective Statement

The program provides an annual reimbursement to towns for tax loss due to a decrease in the value of an electric generation facility as a direct result of restructuring of the electric industry. Under this program, eligible towns receive a declining payment over a ten-year period to make up for the loss in tax dollars due to the devaluation of an electric generation facility.

 

Eligibility

On or before October 1, 2005, any municipality which hosts an electric generation facility that has lost value as a direct result of the restructuring of the electric industry is eligible.

 

Grant Activity

Fiscal Year 2016: - Paid Out: - $101,239.29 - Recipients: - 1 Town

Fiscal Year 2015: - Paid Out: - $199,983.25 - Recipients: - 2 Towns

 

Key Dates

On or before June 15 following the assessment date for which the value of an electric generation facility decreases, the assessor of a municipality in which the facility is located shall certify to the Secretary of the Office of Policy and Management the amount of the reimbursement.

On or before July 15 annually, the Secretary shall certify to the Department of Public Utility Control the amount due the municipality under the provisions of this grant program and the Department shall order the payment of such amount by the appropriate electric distribution company to the municipality.

 

Statutory References

Connecticut General Statutes (CGS): Sections 12-94d

 

Regulatory References

None

 

Funding Source(s)

The amount shall be paid by the appropriate electric distribution company and shall be recovered through the systems benefit charge established pursuant to Section 12-245l.

 

Account Number

Not applicable.

 

Catalogue of Federal Domestic Assistance (CFDA) Number

Not applicable.

 

General Statement of Process

Mail claims to assessors on May 15 following the assessment date for which the value of an electric generation facility decreases. On or before June 15, collect and process claims and develop certification document for the Department of Public Utility Control. On July 15, certify to the Department of Utility Control the amount due each municipality.

 





Content Last Modified on 10/2/2015 9:11:46 AM