Connecticut House Bill HB05996

Connecticut 2025 Regular Session

• Introduced: 1/22/25
• Refer: 1/22/25

Caption

An Act Increasing The Property Tax Credit Against The Personal Income Tax For Certain Property Owners.

Impact

If enacted, the bill would modify section 12-704c of the general statutes of Connecticut, directly impacting the tax obligations of property owners who occupy their multifamily residences. The increase in the property tax credit would potentially ease the financial burden on these homeowners, allowing them to retain more income, which may promote economic stability for their households. This change could encourage more individuals to invest in owning multifamily properties, possibly revitalizing certain housing markets in the state.

Summary

House Bill 05996 aims to increase the property tax credit against the personal income tax specifically for owners of owner-occupied multifamily dwellings. This proposed change seeks to provide financial relief to a segment of property owners by enhancing their ability to offset personal income tax liabilities with property taxes paid. The bill is introduced in the January session of the Connecticut General Assembly and has been referred to the Committee on Finance, Revenue and Bonding for further consideration.

Contention

While the bill is likely to be viewed favorably by property owners, there may be concerns raised regarding its implications for state revenue. Critics might argue that increasing the property tax credit could lead to a reduction in overall tax revenue derived from property taxes, which are crucial for funding public services and local government operations. There may also be discussions on whether the focus on multifamily dwellings adequately addresses the housing needs of the broader community, including single-family homeowners and renters.