SB 403 — AN ACT REESTABLISHING FUNDING FOR THE HOMEOWNERS' ELDERLY AND DISABLED CIRCUIT BREAKER TAX RELIEF PROGRAM.

Senate General Assembly RaisedFile Bill No.

403653 February Session, 2022 LCOSenate Bill No.

2958403 ReferredSenate, toApril 26, 2022 The Committee on APPROPRIATIONSAppropriations Introducedreported by:through SEN.

(APP)OSTEN ANof ACTthe REESTABLISHING19th FUNDINGDist., FORChairperson THEof HOMEOWNERS'the ELDERLYCommittee ANDon DISABLEDthe CIRCUITpart BREAKERof TAXthe RELIEFSenate, PROGRAM.that the bill ought to pass.

AN ACT REESTABLISHING FUNDING FOR THE HOMEOWNERS' ELDERLY AND DISABLED CIRCUIT BREAKER TAX RELIEF PROGRAM.

(a) There is established, for the assessment year commencing October 1, 1985, and each assessment year thereafter, a revised state program of property tax relief for certain elderly homeowners as determined in accordance with subsection (b) of this section, and additionally for the assessment year commencing October 1,1,1986, 1986,andeachassessment and each assessment year thereafter, the property tax relief benefits of such program are made available to certain homeowners who are permanently and totally disabled as determined in accordance with said subsection (b) of this section.

(b)SB403 (1)/ TheFile program established by this section shall provide for a reduction in property tax, except in the case of benefits payable as a LCO 2958 \\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00403-R01 of 9 SB.docx Raised Bill No.

403653 grant1 underSB403 certainFile circumstancesNo. in accordance with provisions in subsection (j) of this section, applicable to the assessed value of certain real property, determined in accordance with subsection (c) of this section, for any (A) owner of real property, including any owner of real property held in trust for such owner, provided such owner or such owner and such owner's spouse are the grantor and beneficiary of such trust, (B) tenant for life or tenant for a term of years liable for property tax under section 12-48, or (C) resident of a multiple-dwelling complex under certain contractual conditions as provided in said subsection (j) of this section, who (i) at the close of the preceding calendar year has attained age sixty-five or over, or whose spouse domiciled with such homeowner, has attained age sixty-five or over at the close of the preceding calendar year, or is fifty years of age or over and the surviving spouse of a homeowner who at the time of [his] the homeowner's death had qualified and was entitled to tax relief under this section, provided such spouse was domiciled with such homeowner at the time of [his] the homeowner's death, or (ii) at the close of the preceding calendar year has not attained age sixty-five and is eligible in accordance with applicable federal regulations to receive permanent total disability benefits under Social Security, or has not been engaged in employment covered by Social Security and accordingly has not qualified for benefits thereunder but who has become qualified for permanent total disability benefits under any federal, state or local government retirement or disability plan, including the Railroad Retirement Act and any government-related teacher's retirement plan, determined by the Secretary of the Office of Policy and Management to contain requirements in respect to qualification for such permanent total disability benefits which are comparable to such requirements under Social Security;

and653 (b) (1) The program established by this section shall provide for a reduction in additionproperty totax, qualificationexcept in the case of benefits payable as a grant under (i)certain orcircumstances (ii)in above,accordance whosewith taxableprovisions andin nontaxablesubsection income,(j) of this section, applicable to the totalassessed value of whichcertain shallreal hereinafterproperty, bedetermined calledin "qualifyingaccordance income",with subsection (c) of this section, for any (A) owner of real property, including any owner of real property held in trust for such owner, provided such owner or such owner and such owner's spouse are the taxgrantor yearand beneficiary of such homeownertrust, ending(B) immediatelytenant precedingfor thelife dateor tenant for a term of applicationyears liable for benefitsproperty tax under thesection program12-48, or (C) resident of a multiple-dwelling complex under certain contractual conditions as provided in said subsection (j) of this section, who (i) at the close of the preceding calendar year has attained age sixty-five or over, or whose spouse domiciled with such homeowner, has attained age sixty-five or over at the close of the preceding calendar year,or isfiftyyearsofageoroverandthesurviving spouse of a homeowner who at the time of [his] the homeowner's death had qualified and was entitled to tax relief under this section, provided such spouse was domiciled with such homeowner at the time of [his] thehomeowner's death, or (ii)at theclose ofthepreceding calendar year has not attained age sixty-five and is eligible in excessaccordance ofwith sixteenapplicable thousandfederal tworegulations hundredto dollars,receive ifpermanent unmarried,total disability benefits under Social Security, or twentyhas thousandnot dollars,been jointlyengaged within LCOemployment 2958covered {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00402by Social Security and accordingly has not qualified for benefits thereunder but who has become qualified for permanent total disability benefits under any federal, state or local government retirement or disability plan, including the Railroad Retirement Act and any government-related teacher's retirement plan, determined by the Secretary of 9the R01-SB.docxOffice }of RaisedPolicy Billand No.Management to contain requirements in respect to qualification for such permanent total disability benefits which are comparable to such requirements under Social Security;

403and spousein ifaddition married,to subjectqualification tounder adjustments(i) inor accordance(ii) withabove, subdivisionwhose (2)taxable ofand thisnontaxable subsection,income, evidencethe total of which income shall hereinafter be requiredcalled "qualifying income", in the formtax year of asuch signedhomeowner affidavitending toimmediately bepreceding submittedthe todate theof assessorapplication infor benefits under the municipalityprogram in whichthis applicationsection, forwas benefitsnot underin thisexcess sectionof issixteen filed.SB403 / File No.

653 2 SB403 File No.

653 thousand two hundred dollars, if unmarried, or twenty thousand dollars, jointly with spouse if married, subject to adjustments in accordance with subdivision (2) of this subsection, evidence of which incomeshallberequiredintheformofasignedaffidavittobesubmitted to the assessor in the municipality in which application for benefits under this section is filed.

If title to real property or a tenancy interest liable for real property taxes is recorded in the name of such qualified homeowner or [his] the homeowner's spouse making a claim and qualifying under this section and any other person or persons, the claimant hereunder shall be entitled to pay [his] the claimant's fractional share of the tax on such property calculated in accordance with the provisions of this section, and such other person or persons shall pay [his or their] a fractional share of the tax without regardregardfor fortheprovisionsofthis thesection,unlessalso provisionsqualifiedhereunder. of this section, unless also qualified hereunder.

(2)(2)The Theamountsofqualifying amounts of qualifying income asasprovidedinthis providedsectionshall in this section shall be adjusted annually in a uniform manner to reflect the annual inflation adjustment in Social Security income, with each such adjustment of qualifying income determined to the nearest one hundred dollars.

Each such adjustment ofofqualifying qualifying income shall be preparedpreparedby bytheSecretary the Secretary of the Office of Policy and Management in relation to the annual inflation adjustment in Social Security, if any, becoming effective at any time during the twelve-month period LCOimmediately 2958preceding {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00403the offirst 9SB403 R01-SB.docx/ }File Raised Bill No.

403653 immediately3 precedingSB403 theFile firstNo. day of October each year and the amount of such adjustment shall be distributed to the assessors in each municipality not later than the thirty-first day of December next following.

(3)653 Forday purposes of determiningOctober qualifyingeach incomeyear underand subdivision (1) of this subsection with respect to a married homeowner who submits an application for tax reduction in accordance with this section, the Socialamount Security income of the spouse of such homeowneradjustment shall not be includeddistributedtotheassessorsineachmunicipalitynotlaterthan inthethirty- thefirst qualifyingday income of suchDecember homeowner,next forfollowing. purposes of determining eligibility for benefits under this section, if such spouse is a resident of a health care or nursing home facility in this state receiving payment related to such spouse under the Title XIX Medicaid program.

An(3)For applicantpurposesofdetermining whoqualifying isincome legallyunder separatedsubdivision pursuant(1) of this subsection with respect to theamarriedhomeowner provisionswho ofsubmits sectionan 46b-40,application asfor oftax thereduction thirty-firstin dayaccordance ofwith Decemberthis precedingsection, the dateSocial onSecurity whichincome suchof personthe filesspouse anof applicationsuch forhomeowner ashall grantnot be included in accordancethe withqualifying subsectionincome (a)of such homeowner, for purposes of determining eligibility for benefits under this section, mayif applysuch asspouse anis unmarrieda personresident andof shalla behealth regardedcare asor suchnursing forhome purposesfacility ofin determiningthis qualifyingstate incomereceiving payment related to such spouse under saidthe subsection.Title XIX Medicaid program.

An applicant who is legally separated pursuant to the provisions of section 46b-40, as of the thirty-first day of December preceding the date on which such person files an application for a grant in accordance with subsection (a) of this section, may apply as an unmarried person and shallberegardedassuchforpurposesofdeterminingqualifyingincome under said subsection.

T1 Qualifying Income Tax Reduction Tax Reduction T2 As Percentage For Any Year T3 Over Not Of Property Tax T4 Exceeding T5 Married Homeowners Maximum Minimum T6 $ 0 $11,700 50% $1,250 $400 T7 11,700 15,900 40 1,000 350 T8 15,900 19,700 30 750 250 T9 19,700 23,600 20 500 150 T10 23,600 28,900 10 250 150 LCOT11 295828,900 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-004034None ofSB403 9/ R01-SB.docxFile } Raised Bill No.

403653 T114 28,900SB403 NoneFile T12No. Unmarried Homeowners T13 $ 0 $11,700 40% $1,000 $350 T14 11,700 15,900 30 750 250 T15 15,900 19,700 20 500 150 T16 19,700 23,600 10 250 150 T17 23,600 None (2) For the fiscal year ending June 30, 2023, and annually thereafter, the qualifying incomes set forth in subdivision (1) of this subsection shall reflect the increase, if any, in the national consumer price index for urban wage earners and clerical workers for the previous twelve- month period.

(d)653 AnyT12 homeownerUnmarried qualifiedHomeowners forT13 tax$ reduction0 in$11,700 accordance40% with$1,000 subsection$350 (b)T14 of11,700 this15,900 section30 in750 an250 amountT15 to15,900 be19,700 determined20 under500 the150 scheduleT16 of19,700 such23,600 tax10 reduction250 in150 subsectionT17 (c)23,600 ofNone this(2) section,For shallthe infiscal noyear eventending receiveJune less30, in2023, taxand reductionannually thanthereafter, the minimumqualifying amountincomes set forth in subdivision (1) of suchthis reductionsubsection applicableshall toreflect the qualifyingincrease, incomeif ofany, suchin homeownerthe accordingnational toconsumer theprice scheduleindex infor saidurban subsectionwage (c).earners and clerical workers for the previous twelve-month period.

(d) Any homeowner qualified for tax reduction in accordance with subsection (b) of this section in an amount to be determined under the schedule of such tax reduction in subsection (c) of this section, shall in no event receive less in tax reduction than theminimum amount of such reduction applicable to the qualifying income of such homeowner according to the schedule in said subsection (c).

In the case of any homeowner who is eligible for tax reduction under this section as a LCOresult 2958of {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-004035increases ofin 9qualifying R01-SB.docxincome, }effective Raisedwith Billrespect to the assessment year commencing SB403 / File No.

403653 result5 ofSB403 increasesFile inNo. qualifying income, effective with respect to the assessment year commencing October 1, 1987, under the schedule of qualifying income and tax reduction in subsection (c) of this section, exclusive of any such increases related to social security adjustments in accordance with subsection (b) of this section, the total amount of tax reduction to which such homeowner is entitled shall be credited and uniformly prorated against property tax installment payments applicable to such homeowner's residence which become due after such homeowner's application for tax reduction under this section is accepted.

In653 October 1, 1987, under the eventschedule thatof aqualifying homeownerincome hasand paidtax reduction in fullsubsection the(c) amount of propertythis taxsection, applicableexclusive toof any such homeowner'sincreases residence,related regardlessto ofsocial whethersecurity theadjustments municipalityin requiresaccordance thewith paymentsubsection (b) of propertythis taxessection, inthe onetotal oramount moreof installments,tax reduction to which such municipalityhomeowner is entitled shall makebe paymentcredited and uniformly prorated against property tax installment payments applicable to such homeownerhomeowner's inresidence thewhich amountbecome ofdue theafter such homeowner's application for tax reduction allowed.under this section is accepted.

In the event that a homeowner has paid in full the amount of property tax applicable to such homeowner's residence, regardless of whether the municipality requiresthepaymentofpropertytaxesinoneormoreinstallments,such municipality shall make payment to such homeowner in the amount of the tax reduction allowed.

Such homeowner may submit such application to the assessor by mailmailor orelectronicmail,inamanner electronicprescribedby mail,theassessor,provided in a manner prescribed by the assessor, provided it is received by the assessor not later than April fifteenth in the assessment year with respect to which such tax reduction is claimed.

Not later than April thirtieth of such year the assessor shall notify, by mail evidenced by a certificate of mailing, any such homeowner for whom such application was not received by said April fifteenth concerning application requirements and such homeowner shall be required not later than May fifteenth to submit such application personally or by electronic mail, in a manner prescribed by the assessor, or, for reasonable cause, by a person acting on behalf of such taxpayer asasapproved approved by theassessor.In theyear immediately following any year in which such homeowner has submitted application and qualified for tax reduction in accordance with this section, such homeowner shall be presumed, without filing application therefor, to be qualified for tax reduction in accordance with the assessor.schedule in subsection (c) of this SB403 / File No.

In653 the6 yearSB403 immediatelyFile following any year in which such homeowner has submitted application and qualified for tax reduction in accordance with this section, such homeowner shall be LCO 2958 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00406 of 9 R01-SB.docx } Raised Bill No.

403653 presumed, without filing application therefor, to be qualified for tax reduction in accordance with the schedule in subsection (c) of this section in the same percentage of property tax as allowed in the year immediately preceding.

The secretary may grant such extension in the case of extenuating circumstance due to illness or incapacitation as evidenced by a certificate signed by a physician, physician assistant or an advanced practice registered nurse totothatextent,orifthesecretarydeterminesthereisgoodcausefordoing that extent, or if the secretary determines there is good cause for doing so.

In making application the homeowner shall present to such assessor, in substantiation of such homeowner's application, a copy of such homeowner's federal income tax return, including a copy of the Social Security statement of earnings for such homeowner, and that of such homeowner's spouse, if filed separately, for such homeowner's taxable year ending immediately prior to the submission of such application, LCOor 2958if {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-004037not required to file a return, such other evidence of 9qualifying R01-SB.docxincome }in Raisedrespect Billto No.such taxable year as may be required by the assessor.

403When orthe ifassessor notis requiredsatisfied tothat filethe aapplying return,homeowner suchis otherentitled evidence of qualifying income in respect to suchtax taxableSB403 year/ asFile mayNo. be required by the assessor.

When653 the7 assessorSB403 isFile satisfiedNo. that the applying homeowner is entitled to tax reduction in accordance with this section, such assessor shall issue a certificate of credit, in such form as the secretary may prescribe and supply showing the amount of tax reduction allowed.

653 reduction in accordance with this section, such assessor shall issue a certificate of credit, in such form as the secretary may prescribe and supply showing the amount of tax reduction allowed.

On or after December 1, 1987, any municipality that neglects to transmit to the secretary the claim as required by this section shall forfeit two hundred fifty dollars to the state, except that the secretary may waive suchsuchforfeiture forfeitureinaccordance inwithproceduresandstandards accordance with procedures and standards established by regulations adopted in accordance with chapter 54.

[, except that the secretary may reduce the amount due as reimbursement under this section by up to one hundred per cent for any municipality that is not eligible for a grant under section 32-9s.] The Comptroller shall draw an order on the Treasurer on or before the fifth business day following December fifteenth and the Treasurer shall pay the amount due each municipality not later than the thirty-first LCOday 2958 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00408 of 9December. R01-SB.docx } Raised Bill No.

403Any dayclaimant aggrieved by the results ofthe secretary'sreview shall have the rights of December.appeal as set forth in section 12-120b.

Any[The claimantamount aggrievedof by the resultsgrant ofpayable theto secretary'seach reviewmunicipality shallin haveany theyear rightsin ofaccordance appealwith asthis setsection forthshallbereducedproportionatelyintheeventthatthetotalofsuchgrants in sectionsuch 12-120b.year exceeds the amount appropriated for the purposes of this SB403 / File No.