OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 ¯ (860) 240-0200
http: //www. cga. ct. gov/ofa
sHB-5093
AN ACT CONCERNING PROPERTY TAX RELIEF FOR CERTAIN ELDERLY HOMEOWNERS.
As Amended by House "A" (LCO 5370)
House Calendar No. : 370
OFA Fiscal Note
Municipalities |
Effect |
FY 07 $ |
FY 08 $ |
Various Municipalities |
See Below |
See Below |
See Below |
Explanation
The bill allows municipalities that choose to do so to establish a program to provide property tax relief for elderly homeowners. Therefore such municipality could increase its mill rate or modify spending to offset any decrease in property taxes as a result of the abatement.
Municipalities that choose to implement such a program will be able to accommodate any additional administrative functions resulting from passage of this bill within its anticipated budgetary resources.
Section 501 of House 'A' allows municipalities to elect a gradual phase-in of real property revaluation assessment increases over a time period not exceeding five years. A municipality may phase-in all or a portion of the assessment increase for each parcel. If a municipality chooses to phase-in a portion of the increase, it must set a factor that cannot be less than 25%. The factor is applied to the increase in assessment to determine the portion of the total assessment that is fully taxed immediately. The remaining increase in the assessment is phased-in over a period of time not exceeding four years.
Municipalities opting to gradually phase-in increases in assessments will see their grand list increase accordingly over the same period of the phase-in and will result in the gradual shift in tax burden among different property classes.
House 'A', except for section 501, also makes various technical changes to the bill which have no fiscal impact. The fiscal impact for section 501 is stated above.
The Out Years
The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.
The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either House thereof for any purpose.