The bill under consideration, identified as Substitute Senate Bill No. 225, proposes an amendment to the personal property tax exemptions for motor vehicles used exclusively for farming. The bill seeks to repeal and replace subsection (a) of section 12-91 of the general statutes, effective October 1, 2024, and applicable to assessment years commencing on or after that date. The current law exempts farm machinery up to an assessed value of $100,000 from local property taxation when used exclusively in farming by eligible farmers or groups, but it specifically excludes motor vehicles from this exemption. The proposed bill includes an insertion that would expand the exemption to include motor vehicles as qualifying farm machinery, thereby allowing farmers to receive tax exemptions on motor vehicles used exclusively for farming purposes.

The fiscal impact statement attached to the bill indicates that there would be no state impact, but there would be a municipal impact resulting in a grand list reduction to various municipalities beginning in FY 26, as more property (specifically, motor vehicles with farm plates) would be eligible for the exemption. The bill analysis clarifies that the exemption applies to motor vehicles used exclusively for farming, and eligible farmers or groups can only receive one exemption. The bill has received a Joint Favorable report from the Planning and Development Committee with a unanimous vote of 21 to 0 on March 15, 2024.