One significant element of S2396 is its provision prohibiting municipalities from conducting tax sales if there is pending litigation regarding the disputed amount of tax owed on any property. This aspect of the bill aims to protect property owners by ensuring their rights are respected until the litigation process is resolved. It also highlights a shift toward balancing the interests of municipalities in recovering tax revenues and ensuring that due process is upheld for property owners.
Summary
Senate Bill S2396, titled 'Collection of Taxes Generally,' was introduced to amend existing tax collection laws in the state. The bill grants authority to municipal collectors, with the approval of the relevant city or town council, to sell the rights to collect overdue taxes to banks or other financial institutions. This aims to streamline the process for recovering uncollected taxes that are due at the end of the municipal fiscal year. The collection agent in such arrangements would be the city or town's tax collector, facilitating the collection and enforcement of tax liens on behalf of the financial institution involved in the transaction.
Contention
While this bill may largely be seen as a practical adjustment to tax collection practices, it could raise concerns among advocacy groups regarding potential abuses associated with the sale of tax collection rights. Opponents of the bill might find issues with the potential for financial institutions to prioritize profit over the taxpayer's rights and the possibility that property owners may face undue pressure or complications during a tax sale process, especially if litigation is involved. As such, discussions around S2396 could reflect broader themes of fairness in tax collection processes and the relationship between municipalities and property owners.