OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sHB-6553
AN ACT PROTECTING PROPERTY OWNERS AGE SIXTY AND
OLDER FROM FORECLOSURE.
Primary Analyst: AN 3/22/21
Contributing Analyst(s): DD
OFA Fiscal Note
State Impact: None
Municipal Impact:
Municipalities Effect FY 22 $ FY 23 $
Various Municipalities Revenue
Loss
See Below See Below
Explanation
There is a revenue loss to municipalities resulting from the bill,
which prohibits towns from placing a lien on property owners aged 60
or older for delinquent taxes that are less than 8 percent of the
property's assessed value.
The bill permits homeowners to accrue delinquent taxes until their
debt meets the threshold outlined in the bill. For illustrative purposes,
such properties with an assessed value of $200,000 would be able to
accrue $16,000 in back taxes prior to the town placing a lien.
The bill is anticipated to weaken tax collection rates and result in a
revenue loss in the fiscal years that delinquent taxes on such properties
would have otherwise likely been collected by the placement of liens.
Over the long term, the extent of revenue loss to towns is unclear, as
the bill does not permanently reduce property taxes owed.
The Out Years
The annualized ongoing fiscal impact identified above would 2021HB-06553-R000174-FN.DOCX Page 2 of 2
continue into the future subject to inflation.