OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

HB-5740

AN ACT ALLOWING CERTAIN MUNICIPALITIES TO CREATE PROPERTY TAX RELIEF PROGRAMS FOR GRADUATES OF CERTAIN EDUCATIONAL INSTITUTIONS LOCATED IN CONNECTICUT.


OFA Fiscal Note

State Impact: None

Municipal Impact:

Municipalities

Effect

FY 18 $

FY 19 $

Bridgeport, Danbury, Hartford, New Britain, New Haven, Norwalk, Stamford, Waterbury

Grand List Reduction

None

Potential

Explanation

It is anticipated that a municipality that chose to implement this optional property tax exemption would increase its mill rate to make up for any grand list reduction incurred as a result of the exemption. This would result in a shift in the tax burden away from people eligible for the program. The extent of the shifting tax burden would vary based on the extent of the exemption set by the municipality, the number of people who participate in the program, and the value of property they purchase.

About 55,000 people graduate each year from public and private universities in the state, and from the regional technical high schools. The number of people who participate in this program, and the corresponding impact on municipalities, would likely vary significantly based on the value of the exemption offered by municipalities.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to municipal grand lists and mill rates.