House Bill No. 7274 amends the existing law regarding the optional homestead property tax exemption for municipalities. The bill allows municipalities to limit eligibility for this exemption by implementing a cap on the assessed value of qualifying dwellings and/or requiring owners to have resided in the property for a specified period. The exemption can range from 5% to 35% of the assessed value for owner-occupied homes, including single-family homes, duplexes, condominiums, and units in common interest communities. The decision to adopt this exemption must be made by the municipality's legislative body or, in cases where the legislative body is a town meeting, by a vote of the board of selectmen.

The bill repeals Section 12-81oo of the general statutes and substitutes it with the new provisions, which include the insertions that allow for the residency requirement and assessed value cap. The fiscal impact of the bill is expected to result in an increase in the grand list for municipalities that implement these changes, starting in fiscal year 2027, while having no impact on those that do not currently offer the exemption. The bill is set to take effect upon passage.

Statutes affected:
Raised Bill: 12-81oo
FIN Joint Favorable: 12-81oo
File No. 867: 12-81oo