An Act Concerning A Delinquent Property Tax Amnesty Program.
Impact
The introduction of this bill could have a significant impact on state laws regarding property tax collection. By allowing municipalities the discretion to forgive penalties and interests, it presents a potential revenue recovery mechanism for local governments facing challenges with unpaid taxes. This could benefit both municipalities, which may recover some outstanding debts, and residents who may find relief from financial burdens associated with back taxes. The structured timeline encourages swift action from delinquent taxpayers, fostering a more timely resolution of outstanding debts.
Summary
SB00080, known as the Act Concerning A Delinquent Property Tax Amnesty Program, seeks to empower municipalities in Connecticut to establish amnesty programs for delinquent property taxes. Under this bill, local legislative bodies may vote to forgive interest and penalties on certain overdue property taxes for residential properties or personal noncommercial property owned by the delinquent taxpayer. This initiative specifically focuses on taxes that were due between July 1, 2007, and July 1, 2010. To qualify for the amnesty, the entire amount of the delinquent tax, exclusive of penalties and interest, must be settled within 60 days following the municipal vote to participate in the program.
Contention
Notably, the bill excludes commercial and industrial properties, as well as properties owned by entities other than natural persons, from participating in the amnesty program. Additionally, properties in foreclosure are largely ineligible unless a natural person remains the owner post-proceedings. This exclusion may raise concerns regarding equitable treatment of taxpayers and questions of whether commercial taxpayers deserve similar relief. The potential discrepancy in how different property owners are treated might spark debate among stakeholders and legislative committees about the fairness and effectiveness of the approach.
An Act Concerning Motor Vehicle Assessments For Property Taxation, Innovation Banks, The Interest On Certain Tax Underpayments, The Assessment On Insurers, School Building Projects, The South Central Connecticut Regional Water Authority Charter And Certain State Historic Preservation Officer Procedures.