OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

HB-5140

AN ACT CONCERNING PROPERTY TAX RELIEF ON CERTAIN REAL PROPERTY HELD IN TRUST.


OFA Fiscal Note

State Impact: None

Municipal Impact:

Municipalities

Effect

FY 15 $

FY 16 $

Various Municipalities

Grand List Reduction

None

Potential

Explanation

The bill expands a local option property tax exemption for elderly or disabled residents to include properties held in trust for and used by such residents as their primary home.

It is not known how many residents the bill makes eligible for this exemption. Any municipality that has this exemption would experience a grand list reduction to the extent that the bill increases the number of eligible residents. Such grand list reduction would result in a reduced property tax levy, given a constant mill rate.

As the bill is effective as of the October 2014 Grand List, any grand list reduction would first occur in FY 16.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.