The proposed legislation, General Assembly Raised Bill No. 6888, aims to provide municipalities with the option to offer real property tax abatements to certain first-time homebuyers. Specifically, the bill allows municipalities to abate up to five hundred dollars in real property taxes for a maximum of five assessment years for residential properties purchased by individuals using funds from the Connecticut Housing Finance Authority. To qualify, the property must be a single-family dwelling that serves as the owner's principal residence and must be encumbered by a mortgage in favor of the Connecticut Housing Finance Authority. This provision is set to take effect on October 1, 2025, and will apply to assessment years commencing on or after that date.

The bill introduces new legal language that establishes this tax abatement option, while no existing legal language is deleted. The intent of the legislation is to support first-time homebuyers by reducing their financial burden through property tax relief, thereby promoting homeownership within the state.