The General Assembly Raised Bill No. 5407 aims to establish a reimbursement mechanism for municipalities that experience revenue loss due to property tax exemptions granted to veterans with a one hundred percent permanent and total disability rating. Effective January 1, 2027, the bill requires each municipality to certify the amount of tax revenue lost to the Secretary of the Office of Policy and Management by July 1 annually. If a municipality fails to submit the required claim and documentation, it will incur a forfeiture of $250, although the Secretary has the discretion to waive this penalty. The Secretary will review the claims and certify the amounts due to each municipality by December 15, with payments made by the Treasurer by December 31.

The bill also outlines the appeal rights for municipalities that are dissatisfied with the Secretary's review results, referencing section 12-120b of the general statutes. The term "municipality" is defined to include towns, cities, boroughs, and consolidated towns and cities or boroughs. The proposed legal language includes new provisions for the reimbursement process while deleting any outdated references that do not apply to the new framework.