Hartford Foundation Submits Testimony in Support of House Bill 6103, An Act Concerning Property Tax Exemption for Property Used for Charitable Purposes
The Hartford Foundation offered testimony in support of House Bill 6103, An Act Concerning Property Tax Exemptions for Property Used for Charitable Purposes, that is the subject of a Planning and Development public hearing on Wednesday, February 3. The bill would require local tax assessors and boards of assessors to post certain property tax exemption statement forms on such assessors' and boards' Internet web sites, specify that payments made by federal, state or local governments for the treatment, support or care of certain individuals shall not constitute housing subsidies for the purposes of determining what is a charitable purpose and require boards of assessors to consider whether certain property claimed to be exempt is owned or held in trust by federal tax-exempt charitable organizations.
Critical funding is diverted away from direct service provision to people in need when nonprofits, burdened by years of state budget cuts, are forced to choose between costly litigation and paying taxes on property that is exempt by state law. The Foundation recognizes the serious fiscal challenges facing many of our municipalities and believes that property used for non-charitable purposes should be subject to local property taxes. Unfortunately, current efforts by some municipalities would subject nonprofits to expenses on property being used for services many of Connecticut residents rely upon and represent a significant threat to Connecticut's human services safety net. For these reasons, the Foundation is urging legislators to support this proposal.