PA 13-224—sSB 383

Veterans' Affairs Committee

Planning and Development Committee

Finance, Revenue and Bonding Committee

AN ACT ESTABLISHING A MUNICIPAL OPTION TO PROVIDE AN ADDITIONAL PROPERTY TAX EXEMPTION FOR ONE HUNDRED PER CENT DISABLED VETERANS

SUMMARY: This act allows municipalities to increase the additional property tax exemption for “100% disabled” veterans with limited income from two to three times the veteran's base exemption.

By law, 100% disabled veterans are eligible for various tax exemptions, such as $3,000 worth of their property, plus an additional amount reflecting higher municipal property revaluation. Those 100% disabled veterans whose total adjusted gross household income is up to $18,000, if single, or $21,000, if married, are eligible for an additional exemption of two times the base amount of one of these tax exemptions. (If such veterans have more income than the statutory limits, they are eligible for an additional exemption of only one and a half times the base exemption. )

Under the act, municipalities may provide an exemption of three times the base exemption to veterans whose federally taxable total adjusted gross household income and other income, excluding veterans' disability payments, fall below the limit of $18,000, if single, or $21,000, if married. A municipality's legislative body or board of selectmen, as appropriate, must approve the exemption.

By law and under the act, the state reimburses municipalities for the revenue loss from additional exemptions either fully, or prorated to the amount appropriated for reimbursements associated with these exemptions. The state does not reimburse municipal revenue lost due to the additional exemption available to veterans with income over the statutory limits.

The act requires the Office of Policy and Management (OPM) to adopt regulations that establish the procedures by which (1) municipalities determine a veteran's eligibility for the new exemption, (2) municipalities apply for reimbursement from the state for revenue lost due to the exemption, and (3) OPM audits and adjusts municipalities' reimbursement applications. Existing law requires OPM to adopt similar regulations governing existing exemptions.

The act also makes technical and conforming changes.

EFFECTIVE DATE: October 1, 2013 and applicable to assessment years starting on or after October 1, 2013.

BACKGROUND

Eligible Veterans

Any Connecticut resident who served or serves in the U. S. Army, Navy, Marine Corps, Coast Guard, or Air Force and has a U. S. Department of Veterans' Affairs (VA) disability rating of 100% is eligible for certain property tax exemptions. The VA considers a number of factors when determining a veteran's disability rating, including the nature and severity of injuries or disabilities and the cumulative impact of multiple injuries or disabilities.

OLR Tracking: DL: CR: PF: RO