SB 1135 — AN ACT CONCERNING THE MUNICIPAL INTEREST RATE APPLICABLE TO DELINQUENT PROPERTY TAXES.

General Assembly SubstituteRaised Bill No.

1135 January Session, 2019 ANLCO ACTNo. CONCERNING THE MUNICIPAL INTEREST RATE APPLICABLE TO DELINQUENT PROPERTY TAXES.

7239 Referred to Committee on FINANCE, REVENUE AND BONDING Introduced by:

(FIN) AN ACT CONCERNING THE MUNICIPAL INTEREST RATE APPLICABLE TO DELINQUENT PROPERTY TAXES.

(b) (1) If any tax due in a single installment or if any installment of any tax due in two or more installments is not paid in full [(1)] (A) on or before the first day of the month next succeeding the month in which it became due and payable, or if not due and payable on the first day of the month, [(2)] (B) on or before the same date of the next succeeding month corresponding to that of the month on which it became due and payable, the whole or such part of such installment as isLCO unpaidNo. shall thereupon be delinquent and shall be subject to interest from the due date of such delinquent installment.

(2)7239 Except1 for unpaid real estate taxes the collection of which4 was,Raised orBill is,No.1135 deferredis underunpaid theshall provisionsthereupon ofbe sectiondelinquent 12-174, and anyshall predecessor and successor thereto, which unpaid real estate taxes continue to be subject to theinterest provisionsfrom ofthe suchdue deferreddate collection LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-01135-R01 of 6such SB.docxdelinquent Substituteinstallment. Bill No.

1135(2) Except for unpaid real estate taxes the collection of which was, or is, deferred under the provisions of section 12-174, and any predecessor and successor thereto, which unpaid real estate taxes continue to be subject to the provisions of such deferred collection statutes, the delinquent portion of the principal of any tax shall be subject to interest at the rate of eighteen per cent per annum from the time when it became due and payable until the same is paid, subject to a minimum interest charge of two dollars per installment which any municipality, by vote of its legislative body or, in the case of a municipality in which the legislative body is a town meeting, its board of selectmen, may elect not to impose.

in which event, interestLCO onNo. the remaining portion of the principal of any such tax shall be computed, as the case may be, from the due date of such tax if no other payment after delinquency has been made or from the last date of payment of interest in full on the whole amount or unpaid balance of the principal of such delinquent tax if previous payment of interest has been made.

Each7239 collector2 shall keep a separate account of such4 interestRaised and the time when the same has been received and shall pay LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-01135-2 of 6 R01-SB.docx } Substitute Bill No.

1135 overinterest on the sameremaining toportion of the treasurerprincipal of any such tax shall be computed, as the municipalitycase may be, from the due date of such tax if no other payment after delinquency has been made or from the collectorlast asdate aof partpayment of interest in full on the whole amount or unpaid balance of the principal of such tax.delinquent tax if previous payment of interest has been made.

Each collector shall keep a separate account of such interest and the time when the same has been received and shall pay over the same to the treasurer of the municipality of the collector as a part of such tax.

Sec.

2.

Subdivision (2) of subsection (b) of section 12-80a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2019):

(2) The person responsible for the collection of taxes for each town, city or borough owed taxes under this subsection may, at such time as such tax becomes delinquent as provided in sections 12-146, as amended by this act, and 12-169, subject such tax to interest (A) at the rate of one and one-half per cent of such tax for each month or fraction thereof [which] that elapses from the time when such tax becomes due and payable until the same is paid, or (B) if a town, city or borough has LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-01133 of 6 R01-SB.docx } Substitute Bill No.

1135 approved a lower rate of interest pursuant to subdivision (3) of subsection (b) of section 12-146, as amended by this act, at the per- month rate of such tax for each month or fraction thereof that elapses from the time when such tax becomes due and payable until the same is paid.

Sec.

3.

Section 12-145 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2019):

(a) The tax collector of each municipality shall, at least five days next preceding the time when each tax becomes due and payable, give notice of the time and place at which the tax collector will receive such tax by advertising in a newspaper published in such municipality or, if no newspaper is published in such municipality, by advertising in any newspaper of the state having a general circulation in such municipality and by posting such notice on a signpost, a bulletin board or the municipality's Internet web site.

The tax collector shall repeat such advertising within one week after such tax has become due and payable and, again, at least five days before such tax becomes delinquent.

Each such notice shall give each date on which such tax shall become due and payable and each date on which such tax shall become delinquent, and shall state that, as soon as such tax becomes delinquent, it shall be subject to interest (1) at the rate of one and one- half per cent of such tax for each month or fraction thereof [which] that elapses from the time when such tax becomes due and payable until the same is paid, or (2) if a municipality has approved a lower rate of interest pursuant to subdivision (3) of subsection (b) of section 12-146, as amended by this act, at the per-month rate of such tax for each month or fraction thereof that elapses from the time when such tax becomes due and payable until the same is paid.

(b) The tax collector of a municipality may waive the interest on delinquent property taxes if the tax collector and the assessor, jointly, determine that the delinquency is attributable to an error by the tax assessor or tax collector and is not the result of any action or failure on the part of the taxpayer.

The tax collector shall notify the taxing LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-01134 of 6 R01-SB.docx } Substitute Bill No.

1135 authority of the municipality of all waivers granted pursuant to this section.

Sec.

4.

Subsection (f) of section 12-157 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2019):

(f) Within sixty days after such sale, the collector shall cause to be published in a newspaper having a daily general circulation in the town in which the real property is located, and shall send by certified mail, return receipt requested, to the delinquent taxpayer and each mortgagee, lienholder and other encumbrancer of record whose interest in such property is choate and is affected by such sale, a notice stating the date of the sale, the name and address of the purchaser, the amount the purchaser paid for the property and the date the redemption period will expire.

The notice shall include a statement that if redemption does not take place by the date stated and in the manner provided by law, the delinquent taxpayer, and all mortgagees, lienholders and other encumbrancers who have received actual or constructive notice of such sale as provided by law, that their respective titles, mortgages, liens, restraints on alienation and other encumbrances in such property shall be extinguished.

After such notice is published, and not later than six months after the date of the sale or within sixty days if the property was abandoned or meets other conditions established by ordinance adopted by the legislative body of the municipality, if the delinquent taxpayer, mortgagee, lienholder or other encumbrancer whose interest in the property will be affected by such sale, pays to the collector, the amount of taxes, interest and charges which were due and owing at the time of the sale together with interest on the total purchase price paid by the purchaser at the rate of eighteen per cent per annum from the date of such sale or, if the municipality has approved a lower rate of interest pursuant to subdivision (3) of subsection (b) of section 12-146, as amended by this act, at such lower rate of interest, plus any taxes and debts owed to the municipality that were not recovered by the sale and any additional LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-01135 of 6 R01-SB.docx } Substitute Bill No.

1135 charges under section 12-140, such deed, executed pursuant to subsection (e) of this section, shall be delivered to the collector by the town clerk for cancellation and the collector shall provide a certificate of satisfaction to the person paying the money who, if not the person whose primary duty it was to pay the tax or taxes, shall have a claim against the person whose primary duty it was to pay such tax or taxes for the amount so paid, and may add the same with the equivalent precedence, rate of interest and priority as the tax paid over other nongovernmental encumbrances but without precedence or priority over any state or municipal tax lien or any tax that was not yet due and payable when notice of the levy was first published to any claim for which he has security upon the property sold, provided the certificate of satisfaction is recorded on the land records but the interests of other persons in the property shall not be affected.

[Within] Not later than ten days [of] after receipt of such amounts in redemption of the levied property, the collector shall notify the purchaser by certified mail, return receipt requested, that the property has been redeemed and shall tender such payment, together with the amount held pursuant to subparagraph (A) of subdivision (1) of subsection (i) of this section, if any, to the purchaser.

If the purchase money and interest are not paid within such redemption period, the deed shall be recorded and have full effect.

Section 1 July 1, 2019 12-146 Sec.LCO No.

27239 July3 1,of 20194 12-80a(b)(2)Raised Sec.Bill No.

31135 JulyStatement 1,of 2019Purpose: 12-145 Sec.

4To Julyallow 1,municipalities 2019to 12-157(f)approve Statementa oflower Legislativeinterest Commissioners:rate applicable to delinquent property taxes.

Sections[Proposed 3deletions andare 4enclosed werein addedbrackets. for consistency with Sections 1 and 2.

FINProposed Jointadditions Favorableare Subst.indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] LCO No.