Researcher: MHF Page 1 3/26/25
OLR Bill Analysis
HB 7122
AN ACT EXCLUDING VETERANS' DISABILITY PAYMENTS FROM
QUALIFYING INCOME WHEN DETERMINING CERTAIN PROPERTY
TAX RELIEF.
SUMMARY
This bill excludes veterans’ disability payments from counting as
income for determining eligibility for specified property tax relief
programs.
First, it excludes veterans’ disability payments a homeowner or his or
her spouse receives for purposes of determining whether they qualify
for the Homeowners’ Elderly and Disabled Circuit Breaker Tax Relief
Program (see BACKGROUND).
It also explicitly excludes these payments for determining whether
taxpayers qualify for the local option exemption for income-qualifying
veterans’ primary residences. This exemption equals 10% of the
assessed value of a dwelling the veteran owns and uses as his or her
primary residence. By law, the exemption is available to veterans with
up to $50,100 in federal adjusted gross income (AGI). (Federal AGI
already excludes veteran disability benefits.)
The bill also aligns the definition of qualifying income for the local
option exemption for “Gold Star” parents and spouses (see
BACKGROUND) with that of other income-based veterans’ property
tax exemptions. Under the bill, as under existing law for the other
exemptions, “qualifying income” is federal AGI plus any other income
not included in federal AGI, except for veterans’ disability payments. By
law, unchanged by the bill, the income limit applicable to the Gold Star
parents and spouses exemption is already aligned with the limit
applicable to these other income-based exemptions.
EFFECTIVE DATE: October 1, 2025 2025HB-07122-R000276-BA.DOCX
Researcher: MHF Page 2 3/26/25
BACKGROUND
Homeowners’ Elderly and Disabled Circuit Breaker Tax Relief
Program
State law provides a property tax credit program for Connecticut
residents who are age 65 and over or totally disabled and whose annual
incomes do not exceed certain limits (for 2024, $45,200 for individuals
and $55,100 for married couples). The credit amount is up to $1,250 for
married couples and $1,000 for individuals, based on a graduated
income scale.
Gold Star Parent and Surviving Spouse Property Tax Exemption
State law allows a municipality to provide a property tax exemption
to any parent or surviving spouse of a service member killed in action
while performing active military duty with the U.S. Armed Forces (i.e.
“Gold Star” parent or surviving spouse). A municipality may exempt
up to $20,000 or 10% of the property’s assessed value.
To be eligible for the exemption, the income of the Gold Star parent
or surviving spouse cannot exceed (1) the state’s income limit for a
single person for other veterans’ property tax exemptions annually set
by the Office of Policy and Management ($45,200, including inflation
adjustments, for 2024) or (2) an amount the municipality sets, up to
$25,000 more than the state limit.
COMMITTEE ACTION
Veterans’ and Military Affairs Committee
Joint Favorable
Yea 20 Nay 0 (03/11/2025)