OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

HB-7501

AN ACT PROVIDING FOR THE CONTINUED OPERATION OF ESSENTIAL FUNCTIONS OF THE STATE.

AMENDMENT

LCO No.: 10120


OFA Fiscal Note

State Impact: None

Municipal Impact: None

Explanation

There is expected to be no revenue loss resulting from the amendment, which provides municipalities an option to freeze property taxes for primarily service-disabled veterans. It is expected that municipalities, if they choose to provide this relief option, would compensate by increasing their mill rate, resulting in no change in revenue. This will result in a shift in tax burden to people that do not qualify for the benefit. The amount of qualified property tax revenue captured under this amendment would depend on how many disabled veterans live in a municipality, their homeownership rate, the mill rate, and the change in assessed value of their related real property year over year.

For context, there are approximately 25,000 service-disabled veterans living in Connecticut. Using veteran homeownership rates, it is estimated that approximately 19,000 individuals would qualify for this benefit. The distribution of this population geographically, which would be predictive of how each municipality is affected, is unknown at this time.

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 chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

Sources:

CT Department of Veteran Affairs