OLR Bill Analysis

sHB-7100 (as amended by House "A" and "B")*

AN ACT CONCERNING AMERICAN LEGION STATE FUND COMMISSION TRANSPARENCY.

SUMMARY

This bill establishes an additional optional municipal veteran's property tax exemption by allowing municipalities, with their legislative body's approval, to provide a property tax exemption to certain veterans (see BACKGROUND) who do not qualify for certain veteran property tax exemptions (i.e., wartime, disabled, and severe service-related exemptions). A municipality may exempt up to $5,000 or 5% of the property's assessed value. The bill establishes application requirements and procedures.

Existing law allows municipalities, with their legislative body's approval, to provide 100% disabled veterans, under certain income thresholds, with three times the amount provided under the state-mandated disabled veterans exemption. The bill increases such income eligibility thresholds from (1) $18,000 to $21,000, if single and (2) $21,000 to $24,000, if married.

The bill also, generally, deems any American Legion records related to the administration of the Soldiers', Sailors' and Marines' Fund (SSMF, see BACKGROUND) as public records and subject to disclosure under the Freedom of Information Act (FOIA). It prohibits the state treasurer, as the SSMF custodian and trustee, from disclosing certain personal information.

*House Amendment “A” (1) exempts certain personal information from FOIA disclosure, (2) deems SSMF administrative records as public records, and (3) makes minor and technical changes.

*House Amendment “B” (1) establishes an optional municipal property tax exemption for certain veterans and (2) increases the income threshold for the municipal option of tripling the state-mandated property tax exemption.

EFFECTIVE DATE: Upon passage for the FOIA provision, and October 1, 2017 for the property tax provisions, and the property tax exemptions apply to assessment years beginning on or after October 1, 2017.

OPTIONAL MUNICIPAL VETERAN PROPERTY TAX EXEMPTION

Eligibility

Under the bill, to be eligible for such optional municipal veteran property tax exemption, the veteran must be the resident of that municipality and not be eligible for the state-mandated property tax exemptions for wartime, disabled, and severe service-related veterans (CGS §§ 12-81(19) to (21)).

Additionally, such veteran's income cannot exceed (1) the state's income limit annually set by the Office of Policy and Management (for 2017, $35,200, if single and $42,900, if married, which includes inflation adjustments) or (2) an amount the municipality sets, up to $25,000 more than the state limit.

Application Procedure

A veteran claiming the exemption must (1) notify the town clerk in the municipality where he or she resides and (2) file an application, on a form prepared by the tax assessor, before the assessment date for which the exemption is claimed.

The bill requires the application to include:

1. a certified copy of the veteran's military discharge document (e.g., DD 214) or at least two affidavits from disinterested persons showing the veteran was honorably discharged or released under honorable conditions from active service and

2. a copy of the veteran's federal income tax return, or if a return is not filed, income-related evidence required by the assessor for the tax year immediately before the assessment date for which the exemption is claimed.

Under the bill, the assessor may require further examination of the veteran under oath concerning the facts in the affidavits.

The assessor must record, for free, each affidavit in full and list the veteran's name. The bill prohibits an assessor, board of assessment appeals, or other official to grant an exemption until all of the required documentation is filed with the town clerk.

Once an application is approved, the exemption takes effect the next day. The veteran must reapply for the exemption every two years.

Annual Certified List

The bill requires the municipal tax assessor to annually make a certified list of veterans that are entitled to the exemption and file it in the town clerk's office. The list is prima facie evidence that the veteran is entitled to the exemption as long as he or she currently lives in the municipality and the municipality still provides the exemption.

Appearance Before the Assessor

Under the bill, at any time, the assessor may require a veteran to appear to furnish additional evidence. But if the individual is unable to appear because of a disability, he or she may submit to the assessor a statement from an attending physician or advanced practice registered nurse certifying the disability and inability to appear. The assessor may request other evidence of total disability that he or she deems appropriate.

Disqualifying Income

A veteran approved for an exemption in any year is presumed to qualify again in the following year. As such, the assessor must notify in writing each of these veterans. (Presumably, the notice would inform them of their ability to claim the exemption that year.)

If the veteran's income exceeds the amount allowed that year, he or she must notify the assessor on or before the next filing date. The assessor must deny the exemption for the year immediately following and any subsequent year, until the veteran reapplies and requalifies for the exemption.

The bill requires any veteran who fails to notify the assessor of such income disqualification to make payments to the municipality in the amount of the property tax exemption that was improperly taken.

MUNICIPAL INCOME-BASED EXEMPTION

By law, municipalities must give disabled veterans an additional income-based exemption. For a veteran whose income falls below a statutorily determined limit, the additional exemption is equal to twice the underlying exemption (CGS § 12-81g(a)). For a veteran whose income is above the limit, the additional exemption is 50% of the underlying exemption (CGS § 12-81g(d)). For 100% disabled veterans, unchanged by the bill, the law sets the limit at $18,000 for unmarried veterans and $21,000 for married veterans.

Instead of providing the additional exemption as described above, existing law allows municipalities, with their legislative body's approval, to provide 100% disabled veterans, under certain income thresholds, with three times the amount provided under the state-mandated disabled veterans exemption. The bill increases the income eligibility thresholds for this municipal option from (1) $18,000 to $21,000, if single and (2) $21,000 to $24,000, if married.

FOIA DISCLOSURES

Under the bill, the state treasurer may access any American Legion record related to SSMF administration and is designated the public agency for the purposes of any FOIA request.

The bill prohibits the treasurer from disclosing the personal information of anyone who (1) makes a gift, bequest, or donation to SSMF or (2) is an applicant for, or a recipient of, SSMF aid unless such disclosure is for (a) administering aid from the fund, (b) assisting such applicant or recipient in obtaining aid from any other government or private program, or (c) complying with a court order.

Under the bill, “personal information” means information capable of being associated with a particular individual through one or more identifiers, including an individual's first name or initial and last name, a Social Security number, a driver's license number, a state identification card number, an account number, a credit or debit card number, a financial record, a passport number, an alien registration number, a health insurance identification number, and any military identification information. This information does not include any publically available information that is lawfully made available to the general public from federal, state, or local government records or widely distributed media.

"Military identification information" means information identifying a person as a armed forces member or a veteran (see BACKGROUND), including a selective service number, military identification number, discharge document, military identification card, or military retiree identification card.

BACKGROUND

Veteran

A veteran is anyone honorably discharged or released from active service in the U.S. Armed Forces.

U.S. Armed Forces

The U.S. Armed Forces includes the Army, Navy, Marine Corps, Coast Guard, and Air Force and any reserve component of these branches, including the Connecticut National Guard performing duty under Title 32 of federal law (e.g., certain Homeland Security missions).

SSMF

PA 13-247, §§ 121-122, transferred SSMF administration from a state agency to the American Legion. But the state treasurer retains custody of the fund and responsibility for investing any amount not required for disbursement.

The SSMF is a trust fund invested by the state treasurer that uses the interest from its investment to provide temporary benefits, such as food, clothing, medical, surgical, and funeral assistance, to eligible wartime veterans and their dependents or surviving dependents.

COMMITTEE ACTION

Veterans' Affairs Committee

Joint Favorable

Yea

14

Nay

0

(03/02/2017)

Government Administration and Elections Committee

Joint Favorable

Yea

16

Nay

0

(04/07/2017)