Connecticut 2020 Regular Session

Connecticut Senate Bill SB00259 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
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2	2
3	3	LCO No. 1914 1 of 6
4	4
5	5	General Assembly Raised Bill No. 259
6	6	February Session, 2020
7	7	LCO No. 1914
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9	9
10	10	Referred to Committee on PLANNING AND DEVELOPMENT
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12	12
13	13	Introduced by:
14	14	(PD)
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19	19	AN ACT CONCERNING NO TICE OF TAX DELINQUENCY.
20	20	Be it enacted by the Senate and House of Representatives in General
21	21	Assembly convened:
22	22
23	23	Section 1. Section 12-141 of the general statutes is repealed and the 1
24	24	following is substituted in lieu thereof (Effective October 1, 2020): 2
25	25	["Municipality"] Except as otherwise indicated in the context: (1) 3
26	26	"Municipality", wherever used in sections [12-142 to 12-170] 12-122 to 4
27	27	12-195h, inclusive, includes each town, consolidated town and city, 5
28	28	consolidated town and borough, city, borough, school district, fire 6
29	29	district, fire and sewer district, sewer district, lighting district and 7
30	30	improvement association and each municipal organization and taxing 8
31	31	district not previously mentioned; [. Except as otherwise indicated in the 9
32	32	context,] (2) "tax", wherever used in said sections, includes each 10
33	33	property tax and each installment and part thereof due to a 11
34	34	municipality, including any interest, penalties, fees and charges, 12
35	35	including collection fees of a collection agency, attorney's fees and those 13
36	36	fees and charges set forth in section 12-140; and (3) "tax collector", 14
37	37	"collector of taxes" and "collector", wherever used in sections 12-122 to 15
38	38	12-195h, inclusive, includes any assistant, agent, counsel or other person 16 Raised Bill No. 259
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42	42	LCO No. 1914 2 of 6
43	43
44	44	authorized to perform the duties of such collector. 17
45	45	Sec. 2. Subsections (a) to (f), inclusive, of section 12-157 of the general 18
46	46	statutes are repealed and the following is substituted in lieu thereof 19
47	47	(Effective October 1, 2020): 20
48	48	(a) When a collector levies one or more tax warrants on real estate, he 21
49	49	or she shall prepare notices thereof, containing the name of the taxpayer, 22
50	50	a legal description of the real property or citation to an instrument in the 23
51	51	land records, an assessor's map or another publicly available document 24
52	52	identifying the real property's boundaries, the street address, if such real 25
53	53	property has one, the amount of the tax or taxes due, including any 26
54	54	interest and charges attributable to the property as of the last day of the 27
55	55	month immediately preceding the notice, a statement that additional 28
56	56	taxes, interest, fees and other charges authorized by law accruing after 29
57	57	the last day of the month immediately preceding the notice are owed in 30
58	58	addition to the amount indicated as due and owing in the notice, and 31
59	59	the date, time and place of sale. The collector shall post one notice on a 32
60	60	bulletin board in or near the collector's office in the town where such 33
61	61	real estate is situated, if any, or at some other exterior place near the 34
62	62	office of the town clerk, which is nearest thereto; one shall be filed in the 35
63	63	town clerk's office of such town and such town clerk shall record and 36
64	64	index the same as a part of the land records of such town, which 37
65	65	recording shall serve as constructive notice equivalent to a lis pendens 38
66	66	for all purposes, and one shall be sent by certified mail, return receipt 39
67	67	requested, to the taxpayer and each mortgage, lienholder and other 40
68	68	encumbrancer of record whose interest is choate and will be affected by 41
69	69	the sale. Such posting, filing and mailing shall be done not more than 42
70	70	twelve and not less than nine weeks before the time of sale and shall 43
71	71	constitute a legal levy of such warrant or warrants upon the real estate 44
72	72	referred to in the notice. Such collector shall also publish a similar notice 45
73	73	for three weeks, at least once each week, in a newspaper published in 46
74	74	such town, or in a newspaper published in the state having a general 47
75	75	circulation in such town. The first notice shall be published beginning 48
76	76	not more than twelve and not less than nine weeks before the time of 49
77	77	sale and the last shall be published not more than four weeks nor less 50 Raised Bill No. 259
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81	81	LCO No. 1914 3 of 6
82	82
83	83	than two weeks before such sale. He shall also send by certified mail, 51
84	84	return receipt requested, to the delinquent taxpayer and to each 52
85	85	mortgagee, lienholder and other encumbrancer of record whose interest 53
86	86	in such property is choate and will be affected by such sale, a similar 54
87	87	notice which shall not be required to list information pertaining to 55
88	88	properties in which the person to whom the notice is directed has no 56
89	89	interest. The notice shall be sent at least twice, the first not more than 57
90	90	eight nor less than five weeks before such sale and the last not more than 58
91	91	four weeks nor less than two weeks before such sale. The notice shall be 59
92	92	addressed to his or her place of residence, if known to the collector; [,] 60
93	93	or to his or her estate or the fiduciary thereof if the collector knows him 61
94	94	or her to be deceased, in which case such mailing shall serve as 62
95	95	constructive notice to each of the delinquent taxpayer's heirs, devisees 63
96	96	and creditors whose interest in such property is inchoate regardless of 64
97	97	whether any application for administration of the decedent's estate has 65
98	98	been filed with the Probate Court having jurisdiction of such estate or 66
99	99	whether any action has been taken by such court on such application; or 67
100	100	to the address, or the agent of such person, to which such person has 68
101	101	requested that tax bills be sent. If there is no address of such person, or 69
102	102	if no such agent is given in the records of such town, the notice shall be 70
103	103	sent to the place where such person regularly conducts business or other 71
104	104	address as the collector believes will give notice of the levy and sale. If 72
105	105	a person is a corporation, limited partnership or other legal entity, the 73
106	106	notice may be sent to any person upon whom process may be served to 74
107	107	initiate a civil action against such corporation, limited partnership or 75
108	108	entity or to any other address that the collector believes will give notice 76
109	109	of the levy and sale. If no place of residence or business is known and 77
110	110	cannot be determined by the tax collector for any owner, taxpayer, 78
111	111	mortgagee, lienholder or other encumbrancer whose interest in the 79
112	112	property is choate and will be affected by the sale, in lieu of notice by 80
113	113	certified mail as provided in this subsection, the notice, together with 81
114	114	the list of mortgagees, lienholders, and other encumbrancers of record 82
115	115	whose interests in the property are choate and will be affected by such 83
116	116	sale, shall be published in a newspaper published in this state, having a 84
117	117	general circulation in the town in which such property is located at least 85 Raised Bill No. 259
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120	120
121	121	LCO No. 1914 4 of 6
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123	123	twice, the first not more than eight weeks nor less than five weeks before 86
124	124	such sale and the last not more than four weeks nor less than two weeks 87
125	125	before such sale. 88
126	126	(b) The collector may, for any reason, adjourn such sale from time to 89
127	127	time by causing public notice of such adjournment and the time and 90
128	128	place of such adjourned sale to be given either by oral announcement or 91
129	129	posting of a written notice at the time and place designated for the sale 92
130	130	in the notices of such sale. If the adjourned date is set for a date more 93
131	131	than three days from the date of the original or rescheduled sale date, 94
132	132	the tax collector shall provide a postage prepaid written notice of the 95
133	133	new time and place of the sale to the delinquent taxpayer and each 96
134	134	mortgagee, lienholder and other encumbrancer of record whose interest 97
135	135	is choate and will be affected by the sale. 98
136	136	(c) At the time and place stated in such notices, or, if such sale is 99
137	137	adjourned, at the time and place specified at the time of adjournment as 100
138	138	aforesaid, such collector (1) may sell at public auction to the highest 101
139	139	bidder all of said real property, to pay the taxes with the interest, fees 102
140	140	and other charges allowed by law, including, but not limited to, those 103
141	141	charges set forth in section 12-140, or (2) may sell all of said real property 104
142	142	to his municipality if there has been no bidder or the amount bid is 105
143	143	insufficient to pay the amount due. 106
144	144	(d) The collector shall post, at the time and place of the sale, a written 107
145	145	notice stating the amount of all taxes, interest, fees and other charges 108
146	146	authorized by law with respect to each property to be sold. The tax 109
147	147	collector may publish or announce any rules for the orderly conduct of 110
148	148	the auction and the making of payment by successful bidders which are 111
149	149	not inconsistent with the requirements of law. The tax collector or the 112
150	150	municipality may retain the services of auctioneers, clerks and other 113
151	151	persons to assist the tax collector in the conduct of the sale and the cost 114
152	152	of such persons paid for their services shall be added to the taxes due 115
153	153	from the delinquent taxpayer. If more than one property is sold, the tax 116
154	154	collector shall apportion all shared costs equally among all the 117
155	155	properties. 118 Raised Bill No. 259
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159	159	LCO No. 1914 5 of 6
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161	161	(e) Within two weeks after such sale, the collector shall execute a deed 119
162	162	thereof to the purchaser or to the municipality conducting the sale and 120
163	163	shall lodge the same in the office of the town clerk of such town, where 121
164	164	it shall remain unrecorded six months from the date of such sale. 122
165	165	(f) Within sixty days after such sale, the collector shall cause to be 123
166	166	published in a newspaper having a daily general circulation in the town 124
167	167	in which the real property is located, and shall send by certified mail, 125
168	168	return receipt requested, to the delinquent taxpayer and each 126
169	169	mortgagee, lienholder and other encumbrancer of record whose interest 127
170	170	in such property is choate and is affected by such sale, a notice stating 128
171	171	the date of the sale, the name and address of the purchaser, the amount 129
172	172	the purchaser paid for the property and the date the redemption period 130
173	173	will expire. The notice shall include a statement that if redemption does 131
174	174	not take place by the date stated and in the manner provided by law, the 132
175	175	delinquent taxpayer, and all mortgagees, lienholders and other 133
176	176	encumbrancers who have received actual or constructive notice of such 134
177	177	sale as provided by law, that their respective titles, mortgages, liens, 135
178	178	restraints on alienation and other encumbrances in such property shall 136
179	179	be extinguished. After [such notice is published] the first notice 137
180	180	published in a newspaper, not more than twelve and not less than nine 138
181	181	weeks before the time of sale, in accordance with the provisions of 139
182	182	subsection (a) of this section, and not later than six months after the date 140
183	183	of the sale or within sixty days if the property was abandoned or meets 141
184	184	other conditions established by ordinance adopted by the legislative 142
185	185	body of the municipality, if the delinquent taxpayer, mortgagee, 143
186	186	lienholder or other encumbrancer whose interest in the property will be 144
187	187	affected by such sale, pays to the collector, the amount of taxes, interest 145
188	188	and charges which were due and owing at the time of the sale together 146
189	189	with interest on the total purchase price paid by the purchaser at the rate 147
190	190	of eighteen per cent per annum from the date of such sale plus any taxes 148
191	191	and debts owed to the municipality that were not recovered by the sale 149
192	192	and any additional charges under section 12-140, such deed, executed 150
193	193	pursuant to subsection (e) of this section, shall be delivered to the 151
194	194	collector by the town clerk for cancellation and the collector shall 152 Raised Bill No. 259
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197	197
198	198	LCO No. 1914 6 of 6
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200	200	provide a certificate of satisfaction to the person paying the money who, 153
201	201	if not the person whose primary duty it was to pay the tax or taxes, shall 154
202	202	have a claim against the person whose primary duty it was to pay such 155
203	203	tax or taxes for the amount so paid, and may add the same with the 156
204	204	equivalent precedence, rate of interest and priority as the tax paid over 157
205	205	other nongovernmental encumbrances but without precedence or 158
206	206	priority over any state or municipal tax lien or any tax that was not yet 159
207	207	due and payable when notice of the levy was first published to any claim 160
208	208	for which he has security upon the property sold, provided the 161
209	209	certificate of satisfaction is recorded on the land records but the interests 162
210	210	of other persons in the property shall not be affected. Within ten days of 163
211	211	receipt of such amounts in redemption of the levied property, the 164
212	212	collector shall notify the purchaser by certified mail, return receipt 165
213	213	requested, that the property has been redeemed and shall tender such 166
214	214	payment, together with the amount held pursuant to subparagraph (A) 167
215	215	of subdivision (1) of subsection (i) of this section, if any, to the purchaser. 168
216	216	If the purchase money and interest are not paid within such redemption 169
217	217	period, the deed shall be recorded and have full effect. 170
218	218	This act shall take effect as follows and shall amend the following
219	219	sections:
220	220
221	221	Section 1 October 1, 2020 12-141
222	222	Sec. 2 October 1, 2020 12-157(a) to (f)
223	223
224	224	Statement of Purpose:
225	225	To (1) recognize, in certain situations, that other individuals perform tax
226	226	collection duties, (2) specify that certain actions shall serve as
227	227	constructive notice to certain individuals for purposes of tax
228	228	delinquency sales of real property, and (3) revise a certain provision to
229	229	account for instances in which the redemption by a delinquent taxpayer
230	230	of the real property at issue occurs prior to the delinquency sale of such
231	231	property.
232	232	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
233	233	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
234	234	underlined.]
235	235