An Act Concerning The Interest Rate On Delinquent Property Taxes.
Summary
SB00038 aims to amend sections of the state's tax collection laws concerning delinquent property taxes. The bill proposes a revision of the prior rules governing how interest on unpaid property taxes is calculated and applied, allowing municipalities the authority to establish higher interest rates. Specifically, the bill enables local governments to charge interest on delinquent property taxes at a rate ranging from fifteen to eighteen percent per annum. This new structure is intended to provide municipalities with greater flexibility and control over their tax collection processes, particularly in managing delinquent taxes more effectively.
The bill modifies existing laws by repealing and replacing sections of the general statutes that pertain to interest on unpaid property taxes. It ensures that tax collectors perform due diligence in notifying delinquent taxpayers, providing transparency regarding when taxes are due, the penalties for late payment, and the applicable rates. The requirement for annual publication and notification through certified mail is intended to safeguard the rights of taxpayers while also streamlining the collection process for municipalities.
Notably, the bill addresses the possibility of waiving interest on delinquent taxes under certain circumstances, specifically in cases where the tax delinquency is due to an error by the municipality's tax collector or tax assessor. This provision aims to protect taxpayers from penalties that are not a result of their actions, ensuring a fair administrative approach to tax collection.
During discussions around the bill, opinions were divided regarding the implications of higher interest rates on taxpayers. Supporters argue that the increased rates provide municipalities with necessary revenue to fund local services and encourage timely tax payments, which could enhance overall fiscal responsibility among property owners. Conversely, opponents raised concerns about the burden that higher rates could place on struggling homeowners and the potential for exacerbating financial hardships during periods of economic downturn.
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