OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sSB-1276
AN ACT CONCERNING A PROPERTY TAX EXEMPTION FOR
VETERANS WHO ARE PERMANENTLY AND TOTALLY DISABLED
BASED ON A DISABILITY RATING OF ONE HUNDRED PER CENT
AND A PROPERTY TAX EXEMPTION FOR GOLD STAR SPOUSES.
Primary Analyst: JP 2/28/25
Contributing Analyst(s):
Reviewer: RW
OFA Fiscal Note
State Impact: None
Municipal Impact:
Municipalities Effect FY 26 $ FY 27 $
Various Municipalities Potential Cost See Below See Below
Various Municipalities Net Grand
List Increase
See Below See Below
Various Municipalities Grand List
Reduction
See Below See Below
Various Municipalities Potentially
Significant
Grand List
Reduction
See Below See Below
Explanation
The bill makes various changes regarding property tax exemptions
for certain veterans and their spouses, described herein.
Section 1 requires municipalities that adjust and republish their 2024
Grand List due to changes related to Sections 2 and 4 to (1) hear appeals
related to the assessment of property for an additional time period and
(2) send any changes to the Office of Policy and Management. This may
result in a potential cost to municipalities in FY 25 associated with an
increased number of appeal hearings.
The section also permits municipalities to make changes to their FY 2025SB-01276-R000038-FN.DOCX Page 2 of 3
26 budget and taxes that have been levied for FY 26. Any impact will be
dependent on changes made to the FY 26 budget and taxes that have
already been levied.
Section 2 results in a net grand list increase for municipalities in FY
26 and FY 27 to the extent that veterans with a permanently and totally
disabled determination and a disability rating of less than 100% no
longer qualify for the total property tax exemption described in
Subdivision (83) of Section 12-81 of the CT General Statutes.
Additionally, the section results in a grand list reduction for
municipalities by expanding the property tax exemption described
above to include mobile manufactured homes and up to two acres of
property owned by qualifying veterans or their spouses. A grand list
reduction results in a revenue loss, given a constant mill rate. The extent
of the grand list reduction depends on the number of qualifying
veterans that own mobile manufactured homes, the amount of property
that qualifying veterans own, the number of qualifying veterans, and
the municipality in which their property is located.
Section 3 results in a potentially significant grand list reduction by
giving municipalities the option to extend the property tax exemption
described in Section 2 to spouses of members of the Armed Forces with
a disability rating who died before October 1, 2024. The impact of this
reduction will depend on the number of municipalities that approve the
option and the number of qualifying spouses who own property in
Connecticut, which is currently unknown.
The exemption in this section differs from Section 2 in the sense that
there is no reference to a 100% disability rating or a permanent and total
designation. This municipal option would apply to the spouse of a
deceased veteran that had been assigned a disability rating of any kind.
Sections 4-9 make corresponding technical changes that do not result
in a fiscal impact.
Section 10 results in a grand list reduction for municipalities by 2025SB-01276-R000038-FN.DOCX Page 3 of 3
extending the property tax exemption described in Section 2 to the
spouses of members of the Armed Forces who die due to their service
while on active duty, effective October 1, 2025. The extent of the grand
list reduction will correspond with the number of qualifying spouses
who own property in Connecticut.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation, the number of qualifying
veterans, and the number of qualifying spouses.