HB 5171 — AN ACT CONCERNING THE WAIVER OF INTEREST ON CERTAIN DELINQUENT PROPERTY TAX PAYMENTS.

House ofBill Representatives File No.

6475171 GeneralPublic AssemblyAct February Session, 2024Reprint of File No.

4)24-90 HouseAN BillACT No.CONCERNING THE WAIVER OF INTEREST ON CERTAIN DELINQUENT PROPERTY TAX PAYMENTS.

5171 As Amended by House Amendment Schedule "A" Approved by the Legislative Commissioner May 2, 2024 AN ACT CONCERNING THE WAIVER OF INTEREST ON CERTAIN DELINQUENT PROPERTY TAX PAYMENTS.

Each HB5171such /notice Fileshall 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 at the rate of one and one-half per cent of such tax for each month or fraction thereof which elapses from the time when such House Bill No.

6475171 HB5171tax Filebecomes No.due and payable until the same is paid.

647 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 at the rate of one and one-half per cent of such tax for each month or fraction thereof which elapses from the time when such tax becomes due and payable until the same is paid.

ThisApproved actMay shall30, take2024 effectPublic asAct followsNo. and shall amend the following sections:

October24-90 1,2 2024,of and2 Section 1 12-145 applicable to assessment years commencing on or after October 1, 2024 HB5171 / File No.

647 2 HB5171 File No.

647 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

None Municipal Impact:

Municipalities Effect FY 25 $ FY 26 $ All Municipalities Revenue Potential Potential Loss Explanation The bill requires tax collectors to waive interest on delinquent property taxes when (1) the tax collector and assessor jointly determine the delinquency was due to a mistake by either official and was not the taxpayers' fault, and (2) the waiver is approved by the municipality's legislative body or board of selectmen.

This will result in a potential revenue lossto municipalitiesbeginning inFY 25as municipalities must waive interest on certain delinquent property taxes.

The extent of the revenue loss will be dependent on the number of delinquencies and the amount of property tax that is delinquent.

Municipalities with no delinquencies will not be impacted.

House "A" alters the original bill by requiring the board of selectmen to approve the waivers when the legislative body is a town meeting.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to the number of property tax delinquencies.

HB5171 / File No.

647 3 HB5171 File No.

647 OLR Bill Analysis HB 5171 (as amended by House "A")* AN ACT CONCERNING THE WAIVER OF INTEREST ON CERTAIN DELINQUENT PROPERTY TAX PAYMENTS.

SUMMARY This bill requires (1) rather than allows, municipal tax collectors to waive interest on delinquent property taxes when the collector and assessor jointly find that the delinquency was because of a mistake by one of them, not the taxpayer’s action or failure and (2) the municipality’s legislative body (or board of selectmen if the legislative body is a town meeting) to approve these waivers.

It also makes a conforming change.

*House Amendment “A” adds the provision requiring the board of selectmen to approve the waivers in any municipality where the legislative body is a town meeting.

EFFECTIVE DATE:

October 1, 2024, and applicable to assessment years starting on or after that date.

COMMITTEE ACTION Planning and Development Committee Joint Favorable Yea 20 Nay 0 (03/01/2024) HB5171 / File No.

647 4