SB 363 Connecticut Senate · 2026 Regular Session

AN ACT ALLOWING MUNICIPALITIES TO IMPOSE COMMERCIAL VACANCY ASSESSMENTS IN CERTAIN DISTRICTS.

SB 363 allows municipalities to charge commercial property owners a fee of $5 per square foot annually for properties that remain vacant in designated districts for more than 180 days in a year. It directly affects commercial property owners in specific zones (like downtown areas) who leave properties unused, while exempting properties under active renovation, facing regulatory delays, or impacted by disasters. The fee is due alongside regular property taxes and can be appealed through existing legal channels. This bill creates a direct financial incentive for property owners to occupy or develop vacant commercial spaces in targeted areas.

Issues: ✓ Budget & Taxes

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2026

Committee Review

Floor Vote

Governor

Introduced Feb 26, 2026 Last action Apr 1, 2026

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What changed between versions

Raised Bill → PD Joint Favorable Substitute · 5 edits

MODERATE

The bill was renamed from a 'Raised Bill' to a 'Substitute Bill' reflecting its progression in the legislative process. The core policy change allows municipalities to charge vacancy fees on a broader range of properties, including those in multi-story buildings and areas with specific commercial zoning. Additionally, the law now requires that any money collected from these fees be placed in a separate fund used strictly for infrastructure and blight remediation, rather than general operating expenses.

Scope change

The bill's scope expanded to include commercial properties located in multi-story buildings and those in zones that allow commercial use, in addition to previously vacant properties. It also added a requirement for municipalities to establish a dedicated fund for the collected fees.

DEFINITION

The definition of 'active renovation' was clarified to specify that work must last at least 90 consecutive days and be done under an approved permit.

ELIGIBILITY

The assessment now applies to properties located in zones allowing commercial use and to ground-level units within multi-story buildings.

Exemptions were expanded to include properties where owners identify legal or regulatory barriers that prevent both occupancy and use.

FISCAL

New requirements mandate that collected fees be deposited into a separate fund used only for infrastructure, blight remediation, or development, prohibiting use for general operating expenses.

REQUIREMENT

The bill now allows town meetings or boards of selectmen to adopt the assessment ordinance, not just a standard legislative body.

Floor votes

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 13, 2026

Upper · Passed

Joint Favorable Substitute

upper

Feb 26, 2026

Committee

REF. TO JOINT COMM. ON Planning and Development

upper

2 primary · 0 co-sponsors