The credit is for property taxes paid during 2005 to a Connecticut political subdivision on a primary residence and/or a privately owned or leased motor vehicle.

Which Property Tax Bills Qualify

You may take credit against your 2005 Connecticut income tax liability for property tax payments you made on your primary residence and/or privately owned or leased motor vehicle to a Connecticut political subdivision. Generally, property tax bills that were due and paid during 2005 qualify for this credit. This includes any installment payments you made during 2005 that were due in 2005 and any installments you prepaid during 2005 due in 2006. Supplemental property tax bills that were due during 2005 or 2006 also qualify if paid during 2005. However, the late payment of any property tax bills or the payment of any interest, fees, or charges related to the property tax bill do not qualify for the credit. A husband and wife who file a joint Connecticut income tax return may consider property tax bills for which the husband or wife, or both, are liable.

You may take credit for a leased motor vehicle if you had a written lease agreement for a term of more than one year, and the property tax became due and was paid during 2005 (either by the leasing company or by you). Refer to your January 2006 billing statement from the leasing company in order to determine the amount of property taxes that may be eligible for the credit. Your statement will either indicate the amount of property taxes paid on your leased motor vehicle or provide you with a toll-free number you may call to obtain the necessary information. If you do not receive a billing statement in January 2006, contact your leasing company for the appropriate property tax information.

Maximum Credit Allowed

The maximum credit allowed (on your primary residence or motor vehicle, or both) is $350 per return, regardless of filing status.

This maximum property tax credit cannot exceed the amount of qualifying property taxes paid or the amount of tax entered on Form CT-1040, Line 10 and is phased-out depending upon your Connecticut adjusted gross income.

Motor Vehicle Credit Restrictions

The number of motor vehicles eligible for this credit depends on your filing status as shown on the front of your Connecticut income tax return. Any individual whose filing status is Single, Married Filing Separately, or Head of Household is limited to the property tax paid on one motor vehicle, even if the individual sells a motor vehicle and purchases a replacement motor vehicle during the taxable year and only owns one motor vehicle at any time during the taxable year. Individuals whose filing status is Married Filing Jointly are limited to the property taxes paid on two motor vehicles.

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