HB 5407 — AN ACT CONCERNING STATE REIMBURSEMENT TO MUNICIPALITIES FOR REVENUE LOST DUE TO THE PROPERTY TAX EXEMPTION FOR VETERANS WITH A ONE HUNDRED PER CENT PERMANENT AND TOTAL DISABILITY RATING.

House of Representatives General Assembly RaisedFile Bill No.

5407148 February Session, 2026 LCOHouse Bill No.

19855407 ReferredHouse toof Representatives, March 24, 2026 The Committee on VETERANS'Veterans' ANDand MILITARYMilitary AFFAIRSAffairs Introducedreported by:through REP.

(VA)FOSTER ANof ACTthe CONCERNING57th STATEDist., REIMBURSEMENTChairperson TOof MUNICIPALITIESthe FORCommittee REVENUEon LOSTthe DUEpart TOof THEthe PROPERTYHouse, TAXthat EXEMPTIONthe FORbill VETERANSought WITHto Apass. ONE HUNDRED PER CENT PERMANENT AND TOTAL DISABILITY RATING.

AN ACT CONCERNING STATE REIMBURSEMENT TO MUNICIPALITIES FOR REVENUE LOST DUE TO THE PROPERTY TAX EXEMPTION FOR VETERANS WITH A ONE HUNDRED PER CENT PERMANENT AND TOTAL DISABILITY RATING.

Any claimant LCOHB5407 1985/ 1File of 2 Raised Bill No.

5407148 aggrieved1 byHB5407 theFile resultsNo. of the secretary's review shall have the rights of appeal as set forth in section 12-120b of the general statutes.

148 aggrieved by the results of the secretary's review shall have the rights of appeal as set forth in section 12-120b of the general statutes.

Section 1 January 1, 2027 New section VA Joint Favorable LCOHB5407 1985/ 2File ofNo. 2

148 2 HB5407 File No.

148 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 27 $ FY 28 $ Resources of the General Fund GF - Cost None At Least 20 million Note:

GF=General Fund Municipal Impact:

Municipalities Effect FY 27 $ FY 28 $ All Municipalities Revenue None See Below Gain Explanation The bill results in a cost to the General Fund of at least $20 million beginning in FY 28 to reimburse municipalities for property tax revenue lost due to the property tax exemption for veterans with a disability rating of one hundred percent deemed permanent and total by the U.S.

Department of Veterans Affairs .

The bill results in a revenue gain of at least $20 million to municipalities that have lost revenue because of the exemption.

Municipalities’ reimbursements will be subject to a $250 forfeiture to the extent that municipalities do not submit a claim with proper documentation to the Secretary of the Office of Policy and Management and the secretary enforces the forfeiture.

The total impact will potentially be higher, dependent on the number of qualifying veterans, the number of spouses of deceased qualifying veterans, and the value of the property that is being exempted.

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148 The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to the amount of property tax revenue lost as a result of the exemption.

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148 OLR Bill Analysis HB 5407 AN ACT CONCERNING STATE REIMBURSEMENT TO MUNICIPALITIES FOR REVENUE LOST DUE TO THE PROPERTY TAX EXEMPTION FOR VETERANS WITH A ONE HUNDRED PER CENT PERMANENT AND TOTAL DISABILITY RATING.

SUMMARY This bill establishes a process for municipalities to receive reimbursement from the Office of Policy and Management (OPM) for lost revenue from the property tax exemption for veterans who have been determined by the United States Department of Veterans Affairs to have a 100% service-connected permanent and total disability (a “100% P&T disability”).

Existing law fully exempts from property tax a primary dwelling or motor vehicle for each of these veterans.

The bill requires each municipality’s assessor, by July 1 annually, to certify to the OPM secretary, on a form created by the secretary, the amount of tax revenue the municipality would have received for the immediately preceding assessment year if not for this property tax exemption.

The bill requires the secretary to review claims and certify to the comptroller the amount due to a municipality.

The comptroller must draw an order on the treasurer and the treasurer must pay the municipality.

Under the bill, a municipality that fails to certify or submit supporting documents to the OPM secretary must pay $250 to the state as a penalty.

The bill permits the secretary to waive the penalty through a procedure in existing law (see BACKGROUND).

The bill applies to a municipality,which under thebill, isa town, city, borough, consolidated town and city, or consolidated town and borough.

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148 EFFECTIVE DATE:

January 1, 2027 STATE REIMBURSEMENT PROCESS The bill requires the OPM secretary to review each claim under existing proceduresforreviewing certainother property tax exemptions and tax relief and grant programs (which includes provisions about notice, modifications, reconsideration, and hearings).

Under the bill, claimants aggrieved by the results of the secretary’s review can appeal to court.