Committee advances reimbursement bill for towns bearing veterans property-tax exemption costs after lengthy debate

The Veterans and Military Affairs Committee voted to send HB5407 to the House floor after a sustained debate about whether the state should reimburse municipalities for revenue lost because of a property-tax exemption for veterans who have a 100% permanent and total disability rating.

Supporters argued the reimbursement would prevent towns from bearing the full cost of a state policy. Representative Buckby said the legislature should fund decisions made at the capital: “If we're making decisions here at the capital, we should be funding those decisions.” Several members framed the proposal as preserving the exemption while easing municipal budget pressure.

Opponents and some skeptics emphasized the cumulative problem of unfunded mandates on municipalities. Senator Austin, while voting to move the bill out of committee, said he was philosophically opposed to aspects of the approach and signaled he would not support it on the floor: “I will vote to get it out of committee, but I will not vote for it on the floor,” he said, citing broader concerns about public understanding of the costs of conflicts and long-term veteran care.

Senator Gordon and others said the bill does not repeal the exemption and is intended to assist towns hurt by the policy. After discussion, the committee took a roll-call vote and advanced HB5407 (JF to the floor); members noted the measure will still face further deliberation and potential fiscal scrutiny in later stages.