AN ACT CONCERNING LIMITS TO PROPERTY TAX INCREASES.

HB 5447 caps annual property tax increases for local governments (including towns, school districts, and special districts) at the lower of 2% or the Consumer Price Index (with negative CPI treated as zero). It excludes tax revenue from new construction or value growth in the prior year, preventing penalties for natural tax base expansion. Local entities may exceed the cap via a supermajority vote or referendum, but must carry over unused cap amounts for one year and face reduced caps if they exceed the limit. The bill aims to stabilize property tax burdens for homeowners and businesses by linking increases to inflation while allowing flexibility for community needs.