Connecticut House Bill HB05543

Connecticut 2019 Regular Session

• Introduced: 1/17/19
• Refer: 1/17/19

Caption

An Act Concerning The Interest Charged On Delinquent Property Tax Payments.

Impact

The proposed reduction in the penalty for late property tax payments could have significant implications for state revenue collection. While the lower interest rate may alleviate some immediate financial strain on taxpayers, it could potentially lead to decreased revenue for local governments that rely on timely tax payments to fund essential services. The bill could be especially beneficial for lower-income households or those facing economic hardships caused by unforeseen circumstances, offering them a more manageable option for addressing delinquent taxes without incurring excessive penalties.

Summary

House Bill 5543 aims to amend existing state legislation regarding property taxes, specifically reducing the interest rate charged on delinquent payments. Currently, taxpayers who fail to pay their property taxes on time are subjected to an interest rate of eighteen percent per annum. HB 5543 proposes to lower this rate to twelve percent per annum, thereby easing the financial burden on those who may struggle to meet their tax obligations in a timely manner. This change reflects an effort to provide relief to taxpayers experiencing financial difficulties.

Contention

There may be differing opinions regarding the enactment of HB 5543. Supporters argue that reducing the interest rate is a progressive step towards making property tax obligations more manageable for families in financial distress, pointing out that excessively high penalties can create a cycle of debt. Conversely, opponents may voice concerns about the potential negative impact on local budgets and services that depend on existing property tax revenue. They might argue that extended delays in tax collection can strain local government finances, hindering their ability to provide necessary public services.

Additional_notes

Overall, HB 5543 represents a move towards tax reform aimed at offering some relief to taxpayers. The discussion surrounding its implementation will likely center on striking a balance between lowering penalties and maintaining sufficient funding for local services.