House Bill No. 7274 amends the existing law regarding the optional homestead property tax exemption for municipalities. The bill allows municipalities to provide a property tax exemption ranging from 5% to 35% of the assessed value for owner-occupied dwellings, including condominiums and units in common interest communities. New provisions enable municipalities to limit eligibility for this exemption by capping the assessed value of qualifying properties and/or requiring a specified term of residency for owners. The bill repeals Section 12-81oo of the general statutes and substitutes it with the new language that includes these provisions.

The fiscal impact of the bill indicates that it will lead to an increase in the grand list starting in FY 27, as it restricts the eligibility for the local option homestead property tax exemption. Municipalities that do not currently offer this exemption will not be affected. The bill is set to take effect upon passage and was reported favorably by the Finance, Revenue and Bonding Committee with unanimous support.

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