HB 6420 — AN ACT CONCERNING THE PROPERTY TAX EXEMPTION FOR CERTAIN MUNICIPAL VOLUNTEERS.

House ofBill Representatives File No.

7026420 GeneralPublic AssemblyAct January Session, 2021(Reprint of File No.

57)21-83 HouseAN BillACT No.CONCERNING THE PROPERTY TAX EXEMPTION FOR CERTAIN MUNICIPAL VOLUNTEERS.

6420 As Amended by House Amendment Schedule "A" Approved by the Legislative Commissioner May 20, 2021 AN ACT CONCERNING THE PROPERTY TAX EXEMPTION FOR CERTAIN MUNICIPAL VOLUNTEERS.

The legislative body of any municipality may establish, by ordinance, a program to provide property tax relief for a nonsalaried local emergency management director, any individual who volunteers his or her services as a firefighter, fire police officer, as defined in subsection (a) of section 7-308, emergency medical technician, paramedic, civil preparedness staff, active member of a volunteer canine search and rescue team, as defined in section 5-249, active member of a volunteer underwater search and rescue team, or ambulance driver in the municipality, or any individual who is a retired volunteer firefighter, fire police officer or emergency medical technician and has completed HB6420at /least Filetwenty-five No.years of service as a volunteer firefighter, fire police officer or emergency medical technician in the municipality.

702Such HB6420tax Filereliefmayprovideeither(1)[(A)fortheperiodcommencingJuly1,2019, and ending June 30, 2021, an abatement of up to one thousand five hundred dollars in property taxes due for any fiscal year, and (B) on and House Bill No.

7026420 atafter leastJuly twenty-five1, years2021,] an abatement of serviceup asto atwo volunteerthousand firefighter,dollars firein policeproperty officertaxes due for any fiscal year, or emergency(2) medicalan technicianexemption applicable to the assessed value of real or personal property up to an amount equal to the quotient of [one] two million dollars divided by the mill rate, in effect at the municipality.time of assessment, expressed as a whole number of dollars per one thousand dollars of assessed value.

Such tax reliefmayprovideeither(1)[(A)fortheperiodcommencingJuly1,2019, and ending June 30, 2021, an abatement of up to one thousand five hundred dollars in property taxes due for any fiscal year, and (B) on and after July 1, 2021,] an abatement of up to two thousand dollars in property taxes due for any fiscal year, or (2) an exemption applicable to the assessed value of real or personal property up to an amount equal to the quotient of [one] two million dollars divided by the mill rate, in effect at the time of assessment, expressed as a whole number of dollars per one thousand dollars of assessed value.

ThisApproved actJune shall28, take2021 effectPublic asAct followsNo. and shall amend the following sections:

Section21-83 12 Julyof 1,2 2021, and 12-81w applicable to assessment years commencing on or after October 1, 2021 HB6420 / File No.

702 2 HB6420 File No.

702 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:

None Municipal Impact:

Municipalities Effect FY 22 $ FY 23 $ Various Municipalities Grand List None See Below Reduction Explanation The bill results in a grand list reduction to certain municipalities.

It increases, by $1,000, an optional property tax exemption for certain volunteer firefighters, emergency medical technicians, and other similar volunteers.

Municipalities that offer this exemption will experience a grand list reduction, which results in a revenue loss, given a constant mill rate.

Any impact is expected to be minimal, as a $1,000 exemption equates to a revenue loss of $32 per eligible taxpayer at the average statewide mill rate.

It is not known how many municipalities offer this tax exemption, or how many property taxpayersreceive it.

As of 2020, there were approximately 22,300 active volunteer firefighters in Connecticut.

The bill also delays a $1,000 increase in an optional tax abatement for the same population of taxpayers from July 1, 2021 to October 1, 2021.

This has no fiscal impact, as it does not change the fiscal year during which the abatement would take effect if a municipality chose to offer it.

House "A" moves up the effective date from October 1, 2021, and HB6420 / File No.

702 3 HB6420 File No.

702 removes a provision that delayed the date on which the abatement amount would increase from $1,500 to $2,000.

This has no fiscal impact because these changes do not change the assessment year to which the bill first applies.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to changes in municipal mill rates and grand lists.

HB6420 / File No.

702 4 HB6420 File No.

702 OLR Bill Analysis HB 6420 (as amended by House "A")* AN ACT CONCERNING THE PROPERTY TAX EXEMPTION FOR CERTAIN MUNICIPAL VOLUNTEERS.

SUMMARY This bill increases the maximum property tax exemption that municipalities may provide to certain active and retired volunteer emergency personnel, making it equal to the maximum amount of relief municipalities may provide these individuals through abatements (i.e., $2,000).

By law, a municipality may by ordinance provide tax relief to qualifying volunteer emergency personnel (see BACKGROUND) in the form of either an abatement or an exemption.

An abatement is a reduction in the amount of taxes owed;

an exemption is a reduction in the property's assessed value for tax purposes.

Prior to July 1, 2019, the maximum amount of relief provided under either form was the same.

(PA 19-36 increased the maximum amount of relief a municipality may provide though abatements but not exemptions.) The bill increases the maximum exemption amount from $1 million to $2 million, divided by the municipality’s mill rate (expressed as a whole number per $1,000 of assessed value) at the time of the assessment.

By doing so,it increasesfrom$1,000to $2,000themaximum amount of tax relief for exemption recipients.

*House Amendment “A” moves up the effective date from October 1, 2021, to July 1, 2021, and removes a provision that delayed the date on which the abatement amount would increase from $1,500 to $2,000.