HB 5498 Connecticut House · 2026 Regular Session

AN ACT CONCERNING REVISIONS TO STATUTES RELATING TO MUNICIPAL TAX COLLECTION.

This bill updates Connecticut state laws governing how municipalities collect and manage property taxes. It requires towns and cities to send tax bills that clearly explain how much state funding they receive and warn that state grants will be reduced if local spending increases by more than 2.5 percent or the inflation rate, whichever is higher. The law also establishes a new committee to train and certify tax collection staff, ensuring consistent standards across the state. Additionally, it clarifies rules for reducing taxes for low-income residents and bankrupt railroads, requiring official approval and annual reporting of such abatements. These changes take effect on October 1, 2026, and apply to all towns, cities, and boroughs in Connecticut.
Bill status passed 3 of 5 stages cleared
Introduction
Mar 2026
Committee Review
Mar 2026
House Passage
May 2026
Senate Passage
Governor
Introduced Mar 5, 2026 Last action May 2, 2026
Maddy AI version diff · 1 comparison

What changed between versions

Raised Bill PD Joint Favorable Substitute · 4 edits
MODERATE
The bill was updated from a 'Raised Bill' to a 'Substitute Bill' after committee review, incorporating specific policy adjustments to tax abatement rules and municipal spending limits. The changes clarify who qualifies for tax relief, including railroad companies in bankruptcy, and refine the criteria for the committee that approves these abatements. Additionally, the threshold for state aid reductions to municipalities with high spending increases was adjusted to account for inflation.
Scope change
The bill's scope regarding tax abatement eligibility was expanded to include railroad companies in bankruptcy reorganization, while the committee composition requirements were tightened to ensure members have specific tax collection expertise.
ELIGIBILITY

Railroad companies in bankruptcy reorganization are now explicitly eligible for tax abatement alongside poor individuals.

REQUIREMENT

Requirements for the tax abatement committee members were updated to mandate certification as municipal tax collectors and demonstrated competence in Connecticut tax practices.

FISCAL

The threshold for state aid reduction to municipalities was modified to compare spending increases against either a 2.5% rate or the inflation rate, whichever is greater.

TECHNICAL

The bill title and legislative document numbers were updated to reflect its status as a Substitute Bill following committee action.

Floor votes · House May 1, 2026

How they voted

1420
Passed · 8 other
Total votes 150
May 1, 2026
D Democratic101
95 Yea 6
94% Yea
R Republican49
47 Yea 2
95% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
14
Key actions
3
Committee
2
Amendments
1
May 1, 2026
Lower · Passed
HOUSE PASSED, HOUSE AMEND. SCH. A
lower
May 1, 2026
Lower · Passed
HOUSE ADOPTED HOUSE AMEND. SCH. A
lower
Mar 13, 2026
Lower · Passed
Joint Favorable Substitute
lower
Mar 5, 2026
Committee
REF. TO JOINT COMM. ON Planning and Development
lower
2 primary · 0 co-sponsors

Sponsors