OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sSB-1316
AN ACT REDUCING INTEREST DUE ON CERTAIN DELINQUENT
MUNICIPAL PROPERTY TAXES.
Primary Analyst: JP 3/24/25
Contributing Analyst(s):
Reviewer: RW
OFA Fiscal Note
State Impact: None
Municipal Impact: See Below
Explanation
The bill reduces the interest due on municipal tax liens that are sold
to a third party from eighteen per cent to twelve per cent in FY 27. This
potentially reduces the number of third parties willing to purchase
municipal tax liens. To the extent that this occurs, it restricts a
municipality's option to sell tax liens to recoup outstanding debt
beginning in FY 27.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to the number of liens assigned by
municipalities.