AN ACT CONCERNING THE OPTIONAL HOMESTEAD PROPERTY TAX EXEMPTION.

HB 7274 allows municipalities that offer a homestead property tax exemption to add eligibility requirements, such as limiting the assessed value of qualifying homes or requiring owners to have lived in the property for a specified period (or both). The bill modifies existing law that permits municipalities to provide a 5%-35% tax exemption on owner-occupied single-family homes, duplexes, condos, and common-interest community units. It does not change the exemption percentage but gives towns more control over who qualifies, potentially reducing the number of homes eligible for the benefit. Municipalities that already offer this exemption will see a revenue increase starting in fiscal year 2027 due to narrower eligibility. The bill takes effect upon passage and applies only to towns that choose to adopt the exemption.