O F F I C E O F L E G I S L A T I V E R E S E A R C H
P U B L I C A C T S U M M A R Y
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PA 21-73—sHB 6643
Planning and Development Committee
AN ACT CONCERNING MU NICIPAL TAXATION ASS ISTANCE
PROGRAMS AND THE MUN ICIPAL PROPERTY TAX WAIVER
SUMMARY: This act increases the maximum total property tax bill that a
municipality’s legislative body may waive, from less than $25 to less than $100.
It additionally allows municipalities and taxing districts to adopt programs for
FYs 22 and 23 to provide certain temporary property tax or municipal utility
charge relief to residents, businesses, and nonprofits (i.e., taxpayers), as long as
the municipality’s legislative body, or taxing district’s board of directors,
approves the program. The act authorizes municipalities and taxing districts to
establish these programs regardless of any conflicting state statutes regarding
taxing districts or local taxes, special acts, charters, home rule ordinances, or local
laws.
EFFECTIVE DATE: July 1, 2021
OPTIONAL RELIEF PROGRAMS
Under the act, municipalities and taxing districts may, with approval from
their legislative body or board of directors, establish programs that:
1. allow taxpayers to defer payments for 90 days from the date they are due
or
2. lower the interest rate (generally from 1.5% to 0.25% per month) on late
payments for 90 days from the date they become due.
Under either program, the relief may apply to property taxes (including those
owed on real and personal property and motor vehicles) or municipal water,
sewer, or electric rates, charges, or assessments (i.e., municipal utility charges).
Payment Deferral
Municipalities and districts that offer a payment deferral program must allow
taxpayers to defer property tax or municipal utility payments for 90 days after the
due date. Under existing law, unchanged by the act, taxpayers generally have a
one-month grace period, after which interest accrues from the due date (CGS §
12-146).
Lowered Interest Rate
Municipalities and districts that adopt a program to lower interest rates must
subject delinquent property tax and municipal utility payments to an interest rate
of 0.25% per month (3% per year) for 90 days after they become due, unless the O L R P U B L I C A C T S U M M A R Y
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full amount is paid sooner or the interest rate under existing law is lower. After
the 90-day period expires, any unpaid amount is subject to the penalties and
interest rate specified under existing law.
Generally, municipal property taxes accrue interest at a rate of 1.5% per
month (18% per year) for each month or part of a month that elapses between the
due date and the payment date (CGS § 12-146). The same rate typically applies to
municipal utility charges.
BACKGROUND
Existing Authority to Waive Interest
Existing law limits municipalities’ statutory authority to waive interest on
delinquent property taxes to certain specific situations (e.g., if the tax collector
and assessor jointly determine that the tax delinquency is the result of an error by
either official (CGS § 12-145)). Additionally, they must waive the interest for a
taxpayer who is a crime victim and who has received compensation from the
state’s Criminal Injuries Compensation Fund, and for certain active military
members (CGS §§ 12-146 and 12-146e).
Related Executive Orders (EOs)
EOs 7S, § 6, and 7W, § 1, established a similar deferment program and low
interest rate program and required municipalities to participate in one or both
programs.