Connecticut 2019 Regular Session

Connecticut Senate Bill SB01135 Compare Versions

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7		-	General Assembly ~~Substitute~~ Bill No. 1135
	5	+	General Assembly Raised Bill No. 1135
8	6		January Session, 2019
	7	+	LCO No. 7239
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	9	+
	10	+	Referred to Committee on FINANCE, REVENUE AND
	11	+	BONDING
	12	+
	13	+
	14	+	Introduced by:
	15	+	(FIN)
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12	20		AN ACT CONCERNING TH E MUNICIPAL INTEREST RATE
13	21		APPLICABLE TO DELINQ UENT PROPERTY TAXES.
14	22		Be it enacted by the Senate and House of Representatives in General
15	23		Assembly convened:
16	24
17	25		Section 1. Section 12-146 of the general statutes is repealed and the 1
18	26		following is substituted in lieu thereof (Effective July 1, 2019): 2
19	27		(a) Unless the context otherwise requires, wherever used in this 3
20	28		section, "tax" includes each property tax and each installment and part 4
21	29		thereof due to a municipality as it may have been increased by interest, 5
22	30		fees and charges. 6
23	31		(b) (1) If any tax due in a single installment or if any installment of 7
24	32		any tax due in two or more installments is not paid in full [(1)] (A) on 8
25	33		or before the first day of the month next succeeding the month in 9
26	34		which it became due and payable, or if not due and payable on the first 10
27	35		day of the month, [(2)] (B) on or before the same date of the next 11
28	36		succeeding month corresponding to that of the month on which it 12
29	37		became due and payable, the whole or such part of such installment as 13
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	40	+
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30	44		is unpaid shall thereupon be delinquent and shall be subject to interest 14
31	45		from the due date of such delinquent installment. 15
32	46		(2) Except for unpaid real estate taxes the collection of which was, or 16
33	47		is, deferred under the provisions of section 12-174, and any 17
34	48		predecessor and successor thereto, which unpaid real estate taxes 18
35		-	continue to be subject to the provisions of such deferred collection 19 Substitute Bill No. 1135
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	49	+	continue to be subject to the provisions of such deferred collection 19
42	50		statutes, the delinquent portion of the principal of any tax shall be 20
43	51		subject to interest at the rate of eighteen per cent per annum from the 21
44	52		time when it became due and payable until the same is paid, subject to 22
45	53		a minimum interest charge of two dollars per installment which any 23
46	54		municipality, by vote of its legislative body or, in the case of a 24
47	55		municipality in which the legislative body is a town meeting, its board 25
48	56		of selectmen, may elect not to impose. [, and provided, in] In any 26
49	57		computation of such interest, under any provision of this section, each 27
50	58		fractional part of a month in which any portion of the principal of such 28
51	59		tax remains unpaid shall be considered to be equivalent to a whole 29
52	60		month. Each addition of interest shall become, and shall be collectible 30
53	61		as, a part of such tax. Interest shall accrue at said rate until payment of 31
54	62		such taxes due notwithstanding the entry of any judgment in favor of 32
55	63		the municipality against the taxpayer or the property of the taxpayer. 33
56	64		(3) Any municipality, by vote of its legislative body or, in the case of 34
57	65		a municipality in which the legislative body is a town meeting, its 35
58	66		board of selectmen, may approve a rate of interest of less than eighteen 36
59	67		per cent per annum for the purposes of this section. 37
60	68		(c) The collector shall apply each partial payment to the wiping out 38
61	69		of such interest before making any application thereof to the reduction 39
62	70		of such principal. If any tax, at the time of assessment or because of a 40
63	71		subsequent division, represents two or more items of property, the 41
64	72		collector may receive payment in full of such part of the principal and 42
65	73		interest of such tax as represents one or more of such items, even 43
66	74		though interest in full on the entire amount of the principal of such tax 44
67	75		has not been received up to the date of such payment; in which event, 45
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68	82		interest on the remaining portion of the principal of any such tax shall 46
69	83		be computed, as the case may be, from the due date of such tax if no 47
70	84		other payment after delinquency has been made or from the last date 48
71	85		of payment of interest in full on the whole amount or unpaid balance 49
72	86		of the principal of such delinquent tax if previous payment of interest 50
73	87		has been made. Each collector shall keep a separate account of such 51
74		-	interest and the time when the same has been received and shall pay 52 Substitute Bill No. 1135
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	88	+	interest and the time when the same has been received and shall pay 52
81	89		over the same to the treasurer of the municipality of the collector as a 53
82	90		part of such tax. 54
83	91		(d) No tax or installment thereof shall be construed to be delinquent 55
84	92		under the provisions of this section if [(A)] (1) such tax or installment 56
85	93		was paid through a municipal electronic payment service within the 57
86	94		time allowed by statute for payment of such tax or installment, or [(B)] 58
87	95		(2) the envelope containing the amount due as such tax or installment, 59
88	96		as received by the tax collector of the municipality to which such tax is 60
89	97		payable, bears a postmark showing a date within the time allowed by 61
90	98		statute for the payment of such tax or installment. 62
91	99		(e) Any municipality may, by vote of its legislative body [,] or, in the 63
92	100		case of a municipality in which the legislative body is a town meeting, 64
93	101		its board of selectmen, may require that any delinquent property taxes 65
94	102		shall be paid only in cash or by certified check or money order. Any 66
95	103		municipality adopting such requirement may provide that such 67
96	104		requirement shall only be applicable to delinquency exceeding a 68
97		-	certain period in duration as determined by such municipality. [Any] 69
98		-	(f) Each municipality shall waive all or a portion of the interest due 70
99		-	and payable under this section on a delinquent tax with respect to a 71
100		-	taxpayer who has received compensation under chapter 968 as a crime 72
101		-	victim. 73
102		-	Sec. 2. Subdivision (2) of subsection (b) of section 12-80a of the 74
103		-	general statutes is repealed and the following is substituted in lieu 75
104		-	thereof (Effective July 1, 2019): 76
105		-	(2) The person responsible for the collection of taxes for each town, 77
106		-	city or borough owed taxes under this subsection may, at such time as 78
107		-	such tax becomes delinquent as provided in sections 12-146, as 79
108		-	amended by this act, and 12-169, subject such tax to interest (A) at the 80
109		-	rate of one and one-half per cent of such tax for each month or fraction 81
110		-	thereof [which] that elapses from the time when such tax becomes due 82
111		-	and payable until the same is paid, or (B) if a town, city or borough has 83 Substitute Bill No. 1135
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118		-	approved a lower rate of interest pursuant to subdivision (3) of 84
119		-	subsection (b) of section 12-146, as amended by this act, at the per-85
120		-	month rate of such tax for each month or fraction thereof that elapses 86
121		-	from the time when such tax becomes due and payable until the same 87
122		-	is paid. 88
123		-	Sec. 3. Section 12-145 of the general statutes is repealed and the 89
124		-	following is substituted in lieu thereof (Effective July 1, 2019): 90
125		-	(a) The tax collector of each municipality shall, at least five days 91
126		-	next preceding the time when each tax becomes due and payable, give 92
127		-	notice of the time and place at which the tax collector will receive such 93
128		-	tax by advertising in a newspaper published in such municipality or, if 94
129		-	no newspaper is published in such municipality, by advertising in any 95
130		-	newspaper of the state having a general circulation in such 96
131		-	municipality and by posting such notice on a signpost, a bulletin board 97
132		-	or the municipality's Internet web site. The tax collector shall repeat 98
133		-	such advertising within one week after such tax has become due and 99
134		-	payable and, again, at least five days before such tax becomes 100
135		-	delinquent. Each such notice shall give each date on which such tax 101
136		-	shall become due and payable and each date on which such tax shall 102
137		-	become delinquent, and shall state that, as soon as such tax becomes 103
138		-	delinquent, it shall be subject to interest (1) at the rate of one and one-104
139		-	half per cent of such tax for each month or fraction thereof [which] that 105
140		-	elapses from the time when such tax becomes due and payable until 106
141		-	the same is paid, or (2) if a municipality has approved a lower rate of 107
142		-	interest pursuant to subdivision (3) of subsection (b) of section 12-146, 108
143		-	as amended by this act, at the per-month rate of such tax for each 109
144		-	month or fraction thereof that elapses from the time when such tax 110
145		-	becomes due and payable until the same is paid. 111
146		-	(b) The tax collector of a municipality may waive the interest on 112
147		-	delinquent property taxes if the tax collector and the assessor, jointly, 113
148		-	determine that the delinquency is attributable to an error by the tax 114
149		-	assessor or tax collector and is not the result of any action or failure on 115
150		-	the part of the taxpayer. The tax collector shall notify the taxing 116 Substitute Bill No. 1135
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157		-	authority of the municipality of all waivers granted pursuant to this 117
158		-	section. 118
159		-	Sec. 4. Subsection (f) of section 12-157 of the general statutes is 119
160		-	repealed and the following is substituted in lieu thereof (Effective July 120
161		-	1, 2019): 121
162		-	(f) Within sixty days after such sale, the collector shall cause to be 122
163		-	published in a newspaper having a daily general circulation in the 123
164		-	town in which the real property is located, and shall send by certified 124
165		-	mail, return receipt requested, to the delinquent taxpayer and each 125
166		-	mortgagee, lienholder and other encumbrancer of record whose 126
167		-	interest in such property is choate and is affected by such sale, a notice 127
168		-	stating the date of the sale, the name and address of the purchaser, the 128
169		-	amount the purchaser paid for the property and the date the 129
170		-	redemption period will expire. The notice shall include a statement 130
171		-	that if redemption does not take place by the date stated and in the 131
172		-	manner provided by law, the delinquent taxpayer, and all mortgagees, 132
173		-	lienholders and other encumbrancers who have received actual or 133
174		-	constructive notice of such sale as provided by law, that their 134
175		-	respective titles, mortgages, liens, restraints on alienation and other 135
176		-	encumbrances in such property shall be extinguished. After such 136
177		-	notice is published, and not later than six months after the date of the 137
178		-	sale or within sixty days if the property was abandoned or meets other 138
179		-	conditions established by ordinance adopted by the legislative body of 139
180		-	the municipality, if the delinquent taxpayer, mortgagee, lienholder or 140
181		-	other encumbrancer whose interest in the property will be affected by 141
182		-	such sale, pays to the collector, the amount of taxes, interest and 142
183		-	charges which were due and owing at the time of the sale together 143
184		-	with interest on the total purchase price paid by the purchaser at the 144
185		-	rate of eighteen per cent per annum from the date of such sale or, if the 145
186		-	municipality has approved a lower rate of interest pursuant to 146
187		-	subdivision (3) of subsection (b) of section 12-146, as amended by this 147
188		-	act, at such lower rate of interest, plus any taxes and debts owed to the 148
189		-	municipality that were not recovered by the sale and any additional 149 Substitute Bill No. 1135
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196		-	charges under section 12-140, such deed, executed pursuant to 150
197		-	subsection (e) of this section, shall be delivered to the collector by the 151
198		-	town clerk for cancellation and the collector shall provide a certificate 152
199		-	of satisfaction to the person paying the money who, if not the person 153
200		-	whose primary duty it was to pay the tax or taxes, shall have a claim 154
201		-	against the person whose primary duty it was to pay such tax or taxes 155
202		-	for the amount so paid, and may add the same with the equivalent 156
203		-	precedence, rate of interest and priority as the tax paid over other 157
204		-	nongovernmental encumbrances but without precedence or priority 158
205		-	over any state or municipal tax lien or any tax that was not yet due and 159
206		-	payable when notice of the levy was first published to any claim for 160
207		-	which he has security upon the property sold, provided the certificate 161
208		-	of satisfaction is recorded on the land records but the interests of other 162
209		-	persons in the property shall not be affected. [Within] Not later than 163
210		-	ten days [of] after receipt of such amounts in redemption of the levied 164
211		-	property, the collector shall notify the purchaser by certified mail, 165
212		-	return receipt requested, that the property has been redeemed and 166
213		-	shall tender such payment, together with the amount held pursuant to 167
214		-	subparagraph (A) of subdivision (1) of subsection (i) of this section, if 168
215		-	any, to the purchaser. If the purchase money and interest are not paid 169
216		-	within such redemption period, the deed shall be recorded and have 170
217		-	full effect. 171
	105	+	certain period in duration as determined by such municipality. 69
	106	+	[Any] (f) Each municipality shall waive all or a portion of the 70
	107	+	interest due and payable under this section on a delinquent tax with 71
	108	+	respect to a taxpayer who has received compensation under chapter 72
	109	+	968 as a crime victim. 73
218	110		This act shall take effect as follows and shall amend the following
219	111		sections:
220	112
221	113		Section 1 July 1, 2019 12-146
222		-	Sec. 2 July 1, 2019 12-80a(b)(2)
223		-	Sec. 3 July 1, 2019 12-145
224		-	Sec. 4 July 1, 2019 12-157(f)
225		-
226		-	Statement of Legislative Commissioners:
227		-	Sections 3 and 4 were added for consistency with Sections 1 and 2.
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230		-	FIN Joint Favorable Subst.
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	121	+	Statement of Purpose:
	122	+	To allow municipalities to approve a lower interest rate applicable to
	123	+	delinquent property taxes.
	124	+
	125	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
	126	+	except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
	127	+	not underlined.]
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