Connecticut Senate Bill SB00799

Connecticut 2017 Regular Session

• Introduced: 2/9/17
• Refer: 2/9/17

Caption

An Act Reducing The Interest Rate On Municipal Tax Liens That Have Been Assigned By A Municipality.

Impact

If enacted, SB00799 would reform the way interest accumulates on municipal tax liens, directly affecting property owners who find themselves in a position of delinquency. By lowering the interest rate, the bill seeks to provide a more favorable environment for the resolution of unpaid taxes, encouraging timely payment and perhaps reducing the number of properties subjected to foreclosure due to tax lien assignments. This change could help stabilize property ownership within municipalities and promote better financial health for both property owners and local governments.

Summary

SB00799 aims to address the financial mechanism surrounding municipal tax liens by reducing the interest rate applied on those liens once they have been assigned by a municipality. Under current law, municipalities have the authority to assign liens for unpaid property taxes to private entities, which can result in high-interest accrual for property owners. This bill proposes to set the interest rate for these assigned tax liens at a more manageable six percent per annum, which is significantly lower than what has traditionally been applied, potentially easing the financial burden on property owners who may be struggling with delinquent taxes.

Contention

Notable points of contention could arise from the differing viewpoints on how this change impacts municipal revenue. Supporters of the bill might argue that lowering the interest rate is essential for protecting vulnerable homeowners from excessive penalties, supporting broader community stability. Critics, however, may express concerns about the potential financial implications for municipalities that rely on high-interest revenues for their budgets. The tension between supporting distressed property owners and maintaining municipal financial health may lead to debates during legislative discussions surrounding this bill.