You asked if the statutes set any conditions under which towns can adjust the amount of property taxes owed by a taxpayer who participates in the Elderly and Disabled Tax Freeze Program.

ELDERLY AND DISABLED TAX FREEZE PROGRAM

Most of the time, this program shields low-income elderly and disabled people from paying higher property taxes, which can happen if the value of their properties increases or towns increase the mill rate (CGS § 12-129b). The state reimburses towns for the extra tax revenue they would have collected up to a specified amount. The statutes and state policy set three conditions under which local tax collectors must adjust tax bills under the program, which started in 1967 and last accepted applicants in 1978.

FORGONE TAXES EXCEEDS CAP ON STATE REIMBURSEMENT

Towns must adjust the tax bill when the difference between the frozen taxes and the actual taxes exceeds the statutory $ 2,000 cap on state reimbursement (CGS § 12-129p). As discussed above, the state reimburses towns for the difference between the amount of property taxes a property owner paid when he was approved for the tax freeze and

the taxes he would have to pay under normal circumstances. If the difference between these amounts exceeds the $ 2,000 cap, the town must add the amount above the cap to the owner's tax bill.

OWNER IMPROVES THE PROPERTY

The tax collector must adjust the tax bill if the owner improves the property. The freeze applies only to the unimproved portion of the property. According to Office of Policy and Management (OPM) guidelines, "any improvement, regardless of the amount, will result in a freeze adjustment. " Improvements do not include roofing or siding, which OPM regards as a property maintenance expense.

The tax collector must determine the value of the improvements and multiply it by the mill rate when the improvement was made or the mill rate at the time the taxes were frozen, whichever is less. He adds this amount to the "frozen tax," which then becomes the adjusted tax freeze (OPM, Questions and Answer Booklet for the Owners' Freeze, Totally Disabled and Additional Veterans' Tax Relief Programs (January 1999), p. 17).

LOWER TAX BILL

The tax collector must also reduce the taxes if the mill rate or a revaluation yields a tax bill that is lower than the frozen amount. The taxpayer continues paying the lower amount until it exceeds the frozen amount (Question and Answer Booklet, p. 17).

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