Septic tank replacement tax credit

(a) An owner of residential real property in the city whose property uses a cesspool to dispose of domestic wastewater and who replaces the cesspool with a septic tank shall be entitled a one-time tax credit under this article against the owner’s real property tax liability unless: (1) A sewer improvement district that would serve the property is planned by the department of environmental services to be established within 10 years after the date of application for the tax credit; (2) The conversion to a septic tank is required by the State department of health as a condition of expanding the size of the dwelling/dwellings; or (3) The conversion to a septic tank is required by the U.S. Environmental Protection Agency. (b) The amount of the tax credit shall not exceed 50 percent of the total cost of the septic tank and disposal system; provided that the tax credit shall apply only to the actual cost to the owner of the septic tank and disposal system and their installation, and shall not include the cost of consumer incentive premiums unrelated to the operation or installation of the septic tank and disposal system; provided further, that the amount of the resultant tax shall not be less than the minimum tax required in § 8-11.1 (g). (c) The credit shall be claimed against real property tax liability for the tax year immediately following approval of the application for the credit. The application must be filed only after installation of the septic tank is completed, the septic tank is operational, and the cesspool is permanently sealed. The tax credit shall entitle the owner to a credit only for the single tax year. There shall be no carryover tax credit. (d) Allowance of a credit under this article shall not preclude future mandatory connection to a sewer system as required in § 43-1.5 (a).