OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
HB-5679
AN ACT CONCERNING PROPERTY TAX ABATEMENT FOR
CERTAIN FIRST-TIME HOME BUYERS.
Primary Analyst: DD 3/24/21
Contributing Analyst(s): AN
OFA Fiscal Note
State Impact: None
Municipal Impact:
Municipalities Effect FY 22 $ FY 23 $
Various Municipalities Potential
Revenue
Loss
See Below See Below
Explanation
The bill allows municipalities to abate up to $500 in property taxes
for homeowners with first-time home buyer mortgages purchased via
the Connecticut Housing Finance Authority (CHFA).
The bill results in a revenue loss to a municipality that choose to
implement this abatement. Such revenue loss would vary based on the
amount of the abatement and the number of eligible homeowners. It is
estimated that at least 28,400 homeowners across the state would be
eligible to participate.
1
If all municipalities implemented a $500
abatement, the revenue loss cumulatively to all municipalities would
be at least $14.2 million annually for the next five years.
The Out Years
The annualized ongoing fiscal impact identified above would
1
CHFA currently has about 28,440 outstanding first-time home buyer mortgages. It
is assumed that each of those people would be eligible for the abatement established
by the bill if their municipality chose to offer it. 2021HB-05679-R000147-FN.DOCX Page 2 of 2
continue into the future subject to changes in municipal grand lists and
mill rates.