On May 23, Governor Ned Lamont announced his signing of a bill that exempts disabled veterans from paying property tax on their primary residence or vehicle.
“Our service members put their lives on the line to protect our nation, and this property tax exemption will provide some relief to those who have made sacrifices for our country,” said Gov. Lamont. “Connecticut is the home of many veterans who have provided for our nation, and we want to ensure that they are properly cared for in their lives after leaving service.”
The bill was passed unanimously by both chambers of the legislature and is similar to a 2023 bill that died after being referred to the Finance Committee. Unlike last year’s bill, which operated on a scale that weighed income, disability rating, and veteran status, this bill only provides exemption to those who have received 100 percent disability ratings from the Department of Veterans Affairs. As a result, the Office of Fiscal Analysis predicts a comparatively reduced fiscal impact. The 2023 bill was projected to reduce property tax incomes statewide by $33.9 million per year, the bill passed this year is only anticipated to reduce property tax incomes by $4.9 million per year.
Similar to last year, the bill received wide support from military and veterans advocacy groups and was opposed by both the Connecticut Conference of Municipalities and the Connecticut Council of Small Towns (COST). These groups disapproved of the bill because of the reductions it would make to municipal tax bases.
“COST recognizes that the property tax imposes a tremendous burden on residents and businesses,” wrote Betsy Gray, Executive Director of COST in written testimony. “However, by increasing or establishing new property tax exemptions, the bills will shift a greater tax burden to other residents and businesses. Given the ongoing fiscal challenges facing municipalities, the state must refrain from establishing additional or expanding existing property tax exemptions, including municipal option tax exemptions, which undermine the ability of towns to fund the delivery of critical programs and services, including education.”
Only veterans who received permanent and total disability ratings resulting from active-duty service by the Department of Veterans Affairs are eligible for the exemption. The exemption would apply to the homes of these service members, and if eligible service members do not own a home, it would instead be applied to one of their motor vehicles. Eligible veterans can file for the exemption with their town assessors. The bill will go into effect on October 1, 2024, and be applicable to every assessment year thereafter.
Gov. Lamont thanked the legislature for its work on the bill, and thanked Rep. Anthony Nolan (D- New London), Co-Chair of the Committee on Veterans and Military Affairs for his advocacy on the bill. Rep. Nolan released a statement in support of the bill’s passage, as did his fellow Committee Co-Chairs, Senators Martha Marx (D-New London) and Cathy Osten (D-Sprague).
“This is one of the greatest bills I’ve voted for, and I’m so proud to see its unanimous, bipartisan passage in the legislature and signage into law by Governor Lamont,” said Rep. Nolan. “This bill acknowledges and appreciates the sacrifices these veterans have made for their country.”
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I’m glad that finally our state is recognizing the huge contribution to our nation. I’m aware that other states have similar laws and they include dwelling and land. Our state of Connecticut says that their in interpretation is that ONLY the dwelling will be exempt from taxes but land will be taxed. I appreciate the gesture and I think it should be the complete real estate tax bill as other states been able to show gratitude to us veterans.
Connecticut has waited a long time to put something in effect for a disabled service member. Other states did this years ago. The state finds so much money for people who walked into our country and received everything for free no questions asked and an American who fought for his country or for that matter someone who is disabled is treated like they are from a different planet. Shame on our leaders It’s about time someone did something
Who do I need to contact to see if I am entitled to the new property tax exemption. My husband passed away 2023 100% disabled. Death was service related. I filed all the paperwork with my tax office they told me I was entitled to the benefit now I was told I’m not. Where do I go for a straight answer