OLR Report 2012-R-0222 explains (1) what state laws authorize municipalities to establish local option property tax relief programs for seniors and (2) which towns have created such programs.
Currently, the state funds a “circuit breaker” property tax relief program for qualified elderly and disabled homeowners that provides a property tax credit based on the participant's income and marital status. In addition, there are two laws allowing towns, without state reimbursement, to provide property tax relief to seniors. The first allows towns to freeze the property taxes for homeowners if they or their spouses are age 70 or older and meet the circuit breaker program's income limits. The second allows towns to offer, with certain restrictions, seniors age 65 and older additional “local option” tax relief without income criteria. This law allows, but does not require, towns to set maximum income limits. The tax relief can take any form, including freezing tax payments at specified levels. The state does not reimburse towns for these programs.
According to the Commission on Aging's (COA) February 2008 report, “Property Tax Relief for Older Adults: A Profile of Connecticut's Local Programs,” (last updated in 2009)108 towns currently offer local option tax relief programs for the elderly, including credits, deferrals, abatements, and freezes.
For more information, read the whole report.
