Source: https://www.cga.ct.gov/2018/fc/2018HB-05239-R000064-FC.htm
Timestamp: 2019-01-23 00:47:07
Document Index: 612535309

Matched Legal Cases: ['§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12']

File No. 64
Substitute House Bill No. 5239
Section 1. Subsections (a) to (c), inclusive, of section 12-81f of the general statutes are repealed and the following is substituted in lieu thereof (Effective October 1, 2018, and applicable to assessment years commencing on or after October 1, 2018):
(a) Any municipality, upon approval by its legislative body, may provide that any veteran entitled to an exemption from property tax in accordance with subdivision (19) of section 12-81 shall be entitled to an additional exemption, provided such veteran's qualifying income does not exceed (1) the applicable maximum amount as provided under section 12-81l, or (2) an amount established by the municipality, [not exceeding] provided such amount shall not be less than the applicable maximum amount under [said] section 12-81l. [by more than twenty-five thousand dollars.] The exemption provided for under this subsection shall be applied to the assessed value of an eligible veteran's property and, at the option of the municipality, may be in an amount up to twenty thousand dollars or in an amount up to ten per cent of such assessed value.
(b) Any municipality, upon approval by its legislative body, may provide that any veteran entitled to an exemption from property tax in accordance with subdivision (20) of section 12-81 shall be entitled to an additional exemption, provided such veteran's qualifying income does not exceed (1) the applicable maximum amount as provided under section 12-81l, or (2) an amount established by the municipality, [not exceeding] provided such amount shall not be less than the applicable maximum amount under [said] section 12-81l. [by more than twenty-five thousand dollars.] The exemption provided for under this subsection shall be applied to the assessed value of an eligible veteran's property and shall be in an amount not less than three thousand dollars of such assessed value.
(c) Any municipality, upon approval by its legislative body, may provide that any veteran's surviving spouse entitled to an exemption from property tax in accordance with subdivision (22) of section 12-81 shall be entitled to an additional exemption, provided such surviving spouse's qualifying income does not exceed (1) the maximum amount applicable to an unmarried person as provided under section 12-81l, or (2) an amount established by the municipality, [not exceeding] provided such amount shall not be less than the applicable maximum amount under [said] section 12-81l. [by more than twenty-five thousand dollars.] The exemption provided for under this subsection shall be applied to the assessed value of an eligible surviving spouse's property and, at the municipality's option, may be in an amount up to twenty thousand dollars or in an amount up to ten per cent of such assessed value.
Sec. 2. Subsection (a) of section 12-81jj of the 2018 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2018, and applicable to assessment years commencing on or after October 1, 2018):
(a) Any municipality, upon approval by its legislative body, may provide that any veteran, as defined in subsection (a) of section 27-103, which veteran is a resident of such municipality and ineligible for an exemption from property tax under subdivisions (19) to (21), inclusive, of section 12-81, shall be entitled to an exemption from property tax, provided such veteran's qualifying income does not exceed (1) the maximum amount applicable to an unmarried person, as provided under section 12-81l, or (2) an amount established by the municipality, [not exceeding] provided such amount shall not be less than the applicable maximum amount under section 12-81l. [by more than twenty-five thousand dollars.] The exemption provided for under this section shall be applied to the assessed value of any such veteran's property and, at the municipality's option, may be in an amount up to five thousand dollars or in an amount up to five per cent of such assessed value.
12-81f(a) to (c)
There is a minimal grand list reduction to municipalities associated with the bill, which allows towns that provide certain additional optional veteran property tax exemptions to increase the income thresholds for eligibility. The grand list reduction would vary based on the number of people eligible at new income limits. Presumably, a town that opts to increase income eligibility for veterans would increase its mill rate to shift the tax burden to other residents rather than experience revenue loss.
The annualized ongoing fiscal impact identified above would continue into the future subject to a change in mill rates and assessment values.
sHB 5239
This bill allows municipalities that provide certain additional optional veteran property tax exemptions to increase the income thresholds for eligibility.
Under current law, municipalities may offer tax exemptions to veterans whose incomes are below (1) the state's income limit for other veterans' property tax exemptions, set annually by the Office of Policy and Management (OPM) (for 2018, $35,300 for individuals and $43,000 for married couples) or (2) an amount the municipality sets, up to $25,000 more than the state limit. The bill instead allows municipalities to set the income limit, with the minimum being the amount OPM sets.
The bill applies the new income thresholds to the additional optional municipal property tax exemptions for:
1. wartime veterans (CGS § 12-81(19));
2. disabled veterans (CGS § 12-81(20));
3. the surviving spouse of a service member or veteran (CGS § 12-81(22)); and
4. veterans who are not entitled to state-mandated property tax exemptions for wartime, disabled, or service-related severely disabled veterans (CGS §§ 12-81, (19) to (21)).
EFFECTIVE DATE: October 1, 2018, and applicable to assessment years commencing on or after that date.
Veterans. The state-mandated veterans property tax exemption is available to state residents who are veterans of the U. S. Armed Forces (Army, Navy, Marine Corps, Coast Guard, and Air Force and any reserve component of these branches, including the Connecticut National Guard performing duty under Title 32 of federal law) and have served at least 90 days in a time of war, as shown in Table 1.
Additionally, World War II veterans of certain allied armed forces are also eligible if they (1) were a U. S. citizen at enlistment and received an honorable discharge or (2) have been a U. S. citizen for at least 10 years and participated in armed conflict with an enemy of the United States (CGS §§ 12-81(19) and 27-103).
Veterans with Disabilities. The law provides state-mandated property tax exemptions to veterans with a VA-rated disability of at least 10% (CGS § 12-81(20)). (The disability does not have to be service-related, and unlike the exemptions for non-disabled veterans, wartime service is not required to qualify.)
Surviving Spouse. A state-mandated property tax exemption is available to an unmarried surviving spouse of a deceased service member or veteran who qualified for the wartime state-mandated exemption described above. The deceased service member or veteran must have died either during his or her term of service or after receiving an honorable discharge (CGS § 12-81(22)).
HB 5240, reported favorably by the Veterans' Affairs Committee, increases the minimum exemption amount, from $3,000 to $50,000, a municipality must provide certain disabled veterans if it chooses to offer an additional optional property tax exemption to such veteran.