AN ACT CONCERNING STATE REIMBURSEMENT TO MUNICIPALITIES FOR REVENUE LOST DUE TO THE PROPERTY TAX EXEMPTION FOR VETERANS WITH A ONE HUNDRED PER CENT PERMANENT AND TOTAL DISABILITY RATING.

HB 5407 creates a state reimbursement program for Connecticut municipalities that lose property tax revenue when veterans with a 100% service-connected disability rating (as determined by the U.S. Department of Veterans Affairs) receive property tax exemptions. Municipalities must annually submit certified claims by July 1 to the Office of Policy and Management, detailing lost tax revenue from this exemption. The state will review claims and pay municipalities by December 31 each year, starting January 1, 2027. This directly affects towns, cities, and boroughs that administer local property taxes.