SB 787 — AN ACT EXEMPTING CERTAIN DISABLED VETERANS FROM PROPERTY TAX.

General Assembly ProposedCommittee Bill No.

18674583 Referred to Committee on VETERANS' AFFAIRS Introduced by:

SEN.(VA) AN ACT EXEMPTING CERTAIN DISABLED VETERANS FROM PROPERTY TAX.

KELLY, 21st Dist.

AN ACT EXEMPTING CERTAIN DISABLED VETERANS FROM PROPERTY TAX.

ThatSection title1. 12 of the general statutes be amended to exempt veterans with a one hundred per cent disability rating from the United States Department of Veterans Affairs from property tax.

StatementSection 12-81 of Purpose:the general statutes is amended by adding subdivision (80) as follows (Effective October 1, 2021, and applicable to assessment years commencing on or after October 1, 2021):

To(NEW) exempt(80) veterans(A) withThe dwelling house, and the lot whereupon the same is erected, owned by or held in trust for any person who is a onecitizen hundredand perresident centof this state, occupied as such person's domicile, shall be exempt from local property taxation if such person (i) has served in the Army, Navy, Marine Corps, Coast Guard or Air Force of the United States, and (ii) has a disability rating fromby the United States Department of Veterans Affairs fromamounting propertyto tax.one hundred per cent of total disability.

(B) No individual shall receive any exemption to which he or she is entitled under this subdivision until he or shehas complied with section 12-95 and has submitted proof of his or her disability rating, as determined by the United States Department of Veterans Affairs, to the LCO No.

4583 1 of 8 Committee Bill No.787 assessor of the town in which the exemption is sought.

If there is no change to an individual's disability rating, such proof shall not be required for any assessment year following that for which the exemption under this subdivision is granted initially.

Sec.

2.

Subdivision (20) of section 12-81 of the general statutes is repealed andthefollowing issubstituted inlieuthereof(EffectiveOctober 1, 2021, and applicable to assessment years commencing on or after October 1, 2021):

(20) Subject to the provisions hereinafter stated, property not exceeding three thousand five hundred dollars in amount shall be exempt from taxation, which property belongs to, or is held in trust for, any resident of this state who has served, or is serving, in the Army, Navy, Marine Corps, Coast Guard or Air Force of the United States and (1) has a disability rating by the United States Department of Veterans Affairs amounting to ten per cent or more of total disability, provided such exemption shall be two thousand dollars in any case in which such rating is between ten per cent and twenty-five per cent;

two thousand five hundred dollars in any case in which such rating [is] amounts to more than twenty-five per cent but not more than fifty per cent;

three thousand dollars in any case in which such rating [is] amounts to more than fifty per cent but not more than seventy-five per cent;

and three thousand five hundred dollars in any case in which such person has attained sixty-five years of age or such rating [is] amounts to more than seventy-five per cent but less than one hundred per cent;

or (2) is receiving a pension, annuity or compensation from the United States because of the loss in service of a leg or arm or that which is considered by the rules of the United States Pension Office or the Bureau of War Risk Insurance the equivalent of such loss.

If such veteran lacks such amount of property in his or her name, so much of the property belonging to, or held in trust for, his or her spouse, who is domiciled with him or her, as is necessary to equal such amount shall also be so exempt.

When any veteran entitled to an exemption under the provisions of this section has died, property belonging to, or held in LCO No.

4583 2 of 8 Committee Bill No.787 trust for, his or her surviving spouse, while such spouse remains a widow or widower, or belonging to or held in trust for his or her minor children during their minority, or both, while they are residents of this state, shall be exempt in the same aggregate amount as that to which the disabled veteran was or would have been entitled at the time of his or her death.

No individual entitled to exemption under this subdivision and under one or more of subdivisions (19), (22), (23), (25) and (26) of this section shall receive more than one exemption.

No individual shall receive any exemption to which he or she is entitled under this subdivision until he or she has complied with section 12-95 and has submitted proof of his or her disability rating, as determined by the United States Department of Veterans Affairs, to the assessor of the town in which the exemption is sought.

If there is no change to an individual's disability rating, such proof shall not be required for any assessment year following that for which the exemption under this subdivision is granted initially.

If the United States Department of Veterans Affairs modifies a veteran's disability rating, such modification shall be deemed a waiver of the right to such exemption until proof of disability rating is submitted to the assessor and the right to such exemption is established as required initially.

Any person who has been unable to submit evidence of disability rating in the manner required by this subdivision, or who has failed to submit such evidence asprovidedinsection12-95,may,whenheor sheobtainssuchevidence, make application to the collector of taxes within one year after he or she obtains such proof or within one year after the expiration of the time limited in section 12-95, as the case may be, for abatement in case the tax has not been paid, or for refund in case the whole tax has been paid, of such part or the whole of such tax as represents the service exemption.

Such abatement or refund may be granted retroactively to include the assessment day next succeeding the date as of which such person was entitled to such disability rating as determined by the United States Department of Veterans Affairs, but in no case shall any abatement or refund be made for a period greater than three years.

The collector shall, after examination of such application, refer the same, with his LCO No.

4583 3 of 8 Committee Bill No.787 recommendations thereon, to the board of selectmen of a town or to the corresponding authority of any other municipality, and shall certify to the amount of abatement or refund to which the applicant is entitled.

Upon receipt of such application and certification, the selectmen or other duly constituted authority shall, in case the tax has not been paid, issue a certificate of abatement or, in case the whole tax has been paid, draw an order upon the treasurer in favor of such applicant for the amount without interest which represents the service exemption.

Any action so taken by such selectmen or other authority shall be a matter of record and the tax collector shall be notified in writing of such action;

Sec.

3.

Section 12-81g of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2021, and applicable to assessment years commencing on or after October 1, 2021):

(a) Effective for the assessment year commencing October 1, 1985, and each assessment year thereafter, any person entitled to an exemption from property tax in accordance with subdivision (19), (20), (21), (22), (23), (24), (25) or (26) of section 12-81, reflecting any increase made pursuant to the provisions of section 12-62g, shall be entitled to an additional exemption from such tax in an amount equal to twice the amount of the exemption provided for such person pursuant to any such subdivision, provided such person's qualifying income does not exceed the applicable maximum amount as provided under section 12-81l, except that if such person has a disability rating [of] amounting to one hundred per cent as determined by theUnited States Department of Veterans Affairs, [the total of such adjusted gross income, individually, if unmarried, or jointly, if married, in the calendar year ending immediately preceding the assessment date with respect to which such additional exemption is allowed, is not more than twenty-one thousand dollars if such person is married or not more than eighteen thousand dollars if such person is not married] such person shallbeexempt frompropertytaxation undersubdivision(80)of section 12-81, as amended by this act.

18674583 14 of 18 Committee Bill No.787 [(b)(1)Effective for theassessment year commencing October 1,2013, and each assessment year thereafter, any municipality may, upon approval by its legislative body or, in any town in which the legislative body is a town meeting, by the board of selectmen, provide that, in lieu of the additional exemption prescribed under subsection (a) of this section, any person entitled to an exemption from property tax in accordancewithsubdivision(20)ofsection12-81,reflectinganyincrease made pursuant to the provisions of section 12-62g, who has a disability rating of one hundred per cent, as determined by the United States Department of Veterans Affairs, shall be entitled to an additional exemption from such tax in an amount equal to three times the amount of the exemption provided for such person pursuant to subdivision (20) of section 12-81, provided such person's total adjusted gross income as determined for purposes of the federal income tax, plus any other income not included in such adjusted income, excluding veterans' disability payments, individually if unmarried, or jointly with spouse if married, during the calendar year ending immediately preceding the filing of a claim for any such exemption, is not more than twenty-four thousand dollars if such person is married or not more than twenty-one thousand dollars if such person is not married.

(2) The provisions of this subsection shall not limit the applicability of the provisions of subsection (a) of this section for persons not eligible for the property tax exemption provided by this subsection.] [(c)] (b) Any claimant who, for purposes of obtaining an exemption under this section, wilfully fails to disclose all matters related thereto or with intent to defraud makes any false statement shall forfeit the right to claim such additional veteran's exemption.

[(d)] (c) Effective for the assessment year commencing October 1, 1986, and each assessment year thereafter, any person entitled to an exemption from property tax in accordance with subdivision (19), (20), (21), (22), (23), (24), (25) or (26) of section 12-81, reflecting any increase made pursuant to the provisions of section 12-62g, and who is not LCO No.

4583 5 of 8 Committee Bill No.787 receiving or is not eligible to receive the additional exemption under subsection (a) [or (b)] of this section, shall be entitled to an additional exemption from such tax in an amount equal to one-half of the amount of the exemption provided for such person pursuant to any such subdivision.