On February 19, 2025, the Connecticut State Legislature introduced House Bill 6997, aimed at reforming the process for challenging wrongful property tax assessments. The bill seeks to empower taxpayers by allowing them to recover reasonable attorney's fees when they successfully contest an erroneous property tax assessment in court.

The key provisions of House Bill 6997 include granting the Superior Court the authority to award attorney's fees to applicants whose tax assessments are reduced. This change is intended to alleviate the financial burden on individuals who may otherwise be deterred from pursuing legal action against unjust tax assessments due to high legal costs. Additionally, the bill stipulates that if a court finds in favor of the applicant, the town or city must reimburse any overpaid taxes as determined by the court's judgment.

Debate surrounding the bill has highlighted concerns from municipal leaders regarding potential financial implications for local governments. Opponents argue that the provision for attorney's fees could lead to an increase in litigation, placing additional strain on municipal budgets. Proponents, however, assert that the bill promotes fairness and accountability in the property tax assessment process, ensuring that taxpayers have a viable avenue for redress.

The bill is set to take effect on October 1, 2025, should it pass through the legislative process. If enacted, House Bill 6997 could significantly impact the relationship between taxpayers and local governments, potentially leading to a rise in property tax appeals and a reevaluation of assessment practices. As discussions continue, stakeholders from both sides are closely monitoring the bill's progress, anticipating its implications for property tax equity in Connecticut.