During the recently concluded special session, the Connecticut General Assembly approved, and the Governor subsequently signed into law, Section 244 of Public Act No. 15-5 (June Special Session) that revokes the property tax exemption long enjoyed by private colleges and universities on certain of their residential properties.  Effective October 1, 2015, any residential real property held by or on behalf of most private nonprofit institutions of higher learning that is used or intended for use as student housing will be subject to property tax.  The term “residential real property” as used in the statute includes “any house or building, or portion thereof, which is rented, leased or hired out to be occupied as a home or residence of one or more students”, but excludes dormitories of 20 beds or more.  Only a  handful of institutions are not subject to this new statute by virtue of other exemption laws that have been on the books for many years.

All institutions that are covered by this law should immediately identify those residential properties they own which will now be subject to taxation.  Once identified, they should begin the process of reviewing the assessments placed on the properties to determine if they are excessive.  Overassessments can be challenged informally and if necessary, appealed to local Boards of Assessment Appeals by February 20.