The General Assembly Raised Bill No. 1316 aims to amend Section 12-195h of the general statutes to reduce the interest rate on certain delinquent municipal property taxes from eighteen percent to twelve percent per annum. This change will apply to assignments of liens executed on or after July 1, 2026, and will allow municipalities to assign liens for unpaid taxes on real property to third parties. The bill stipulates that the assignee will have the same rights and powers as the municipality regarding the lien, including the ability to enforce it through foreclosure or legal action.

Additionally, the bill introduces several new requirements for the assignment of liens, including the obligation for assignees to provide payoff statements, disclose any legal or ethical violations, and notify property owners and mortgage holders of assignments and foreclosure intentions. The assignee must also ensure that the assignment is memorialized in a written contract with the municipality, detailing various terms and conditions. The act is set to take effect on October 1, 2025, and aims to create a more structured and transparent process for the assignment and collection of delinquent property taxes.

Statutes affected:
Raised Bill: 12-195h