Connecticut Senate Bill SB00472

Connecticut 2016 Regular Session

• Introduced: 3/17/16
• Refer: 3/17/16
• Report Pass: 3/30/16
• Refer: 4/8/16
• Report Pass: 4/14/16
• Refer: 4/19/16
• Report Pass: 4/22/16
• Report Pass: 4/25/16

Caption

An Act Concerning The Assignment Of Liens Filed By A Municipal Tax Collector And A Study Of The Municipal Tax Lien Foreclosure Process By The Connecticut Law Revision Commission.

Impact

The bill's implementation is expected to streamline the process of managing tax liens and improve revenue collection for municipalities. In addition, it mandates that all parties involved, including mortgage holders and taxpayers, are notified of any lien assignments within thirty days. This requirement aims to enhance transparency and protect the interests of taxpayers and mortgage holders by ensuring that they are kept informed about their obligations and any changes relating to the liens on their properties.

Summary

Senate Bill 00472 seeks to amend the statutes governing the assignment of liens filed by municipal tax collectors in Connecticut. The bill allows municipalities to assign their tax liens on real properties to third parties for consideration. This change aims to enhance the municipalities' ability to manage unpaid taxes by enabling them to transfer liens and grant the assignees the same rights as the municipalities, including the authority to foreclose on liens and collect unpaid debts. The revisions are set to take effect on October 1, 2016, marking a significant shift in the handling of municipal tax collection and foreclosure processes.

Sentiment

The sentiment surrounding SB 00472 appears to be generally favorable among municipal leaders who see it as a necessary tool for more effective tax collection. However, there may be concerns from property owners about the implications of third-party lien holders on their property rights and the potential for aggressive collection practices by the assignees. The requirement for notifications could mitigate some of these concerns, but the overall sentiment may still reflect a cautious acceptance of the bill’s provisions.

Contention

One notable point of contention regarding SB 00472 is the potential impact on taxpayers who are already struggling with unpaid taxes. As it allows third-party entities to enforce liens, there might be fears of increased pressures from these assignees in terms of collection strategies. Additionally, the study mandated by the Connecticut Law Revision Commission on the adequacy of the state processes governing tax lien foreclosures may raise questions about the balance between effective tax collection and the protection of taxpayer rights. Stakeholders will be eager to see the commission's findings, which may lead to further legislative action.