Substitute Senate Bill No. 1316 seeks to amend Section 12-195h of the general statutes concerning the assignment of municipal property tax liens. The bill permits municipalities to assign liens for unpaid taxes to third parties, allowing these assignees to exercise the same rights as municipalities in enforcing the liens. A significant change introduced by the bill is the reduction of the interest rate on delinquent tax obligations from eighteen percent to twelve percent for assignments executed on or after July 1, 2026. The bill also establishes new requirements for assignees, including the provision of payoff statements, written notifications to property owners, and detailed reporting to municipalities.

Key provisions inserted into the bill require assignees to disclose any legal issues or ethics violations and to obtain prior written consent from the municipality before transferring the lien to another party. Additionally, assignees must provide contact information and payment instructions to property owners and security interest holders before initiating foreclosure actions. The overall goal of the bill is to create a more transparent and structured process for the assignment and enforcement of municipal tax liens while alleviating the financial burden on property owners through lower interest rates. The bill is set to take effect on October 1, 2025.

Statutes affected:
Raised Bill: 12-195h
PD Joint Favorable: 12-195h
File No. 207: 12-195h