The proposed legislation, General Assembly Raised Bill No. 7122, aims to exclude veterans' disability payments from the calculation of qualifying income for property tax relief. Specifically, it amends section 12-81kk of the general statutes to allow municipalities to provide property tax exemptions for veterans whose federal adjusted gross income, excluding veterans' disability payments, is $50,100 or less. This exemption would apply to the assessed value of their primary residence, granting a 10% reduction in property taxes. Additionally, the bill modifies section 12-170aa to ensure that veterans' disability payments are not counted as income when determining eligibility for property tax reductions for homeowners aged 65 and older or those with permanent total disabilities.

Furthermore, the bill updates the definition of "qualifying income" in section 12-81l to clarify that it includes total adjusted gross income plus any other income not included in that gross income, but explicitly excludes veterans' disability payments. The maximum qualifying income thresholds are also adjusted to align with the changes made in section 12-170aa, ensuring that the income limits for property tax relief are consistent across the relevant statutes. The effective date for these changes is set for October 1, 2025.

Statutes affected:
Raised Bill: 12-81l
VA Joint Favorable: 12-81l
File No. 276: 12-81l
PD Joint Favorable: 12-81l