Senate Bill No. 1339 proposes significant amendments to the assignment of liens for unpaid taxes and assessments by municipalities, particularly focusing on the terms and conditions under which these assignments can occur. The bill repeals existing sections of the general statutes and introduces new provisions that allow municipalities to assign liens filed by tax collectors or waterworks superintendents for consideration, with the terms negotiated between the municipality and the assignee. Notably, for assignments executed on or after July 1, 2026, the interest on delinquent tax obligations will accrue at a reduced rate of twelve percent per annum, down from eighteen percent. The bill also mandates that these assignments be documented in a written contract that includes specific provisions regarding attorney's fees, communication with property owners, and the assignee's obligations, including the requirement to provide written notice of the assignment to property owners and mortgage holders within sixty days.

Additionally, the bill outlines the responsibilities of assignees, including the necessity to notify holders of security interests before initiating foreclosure actions and ensuring that all foreclosure actions are commercially reasonable. Attorney's fees related to foreclosure actions initiated on or after July 1, 2026, are capped at fifteen percent of any judgment entered. The bill aims to enhance transparency and accountability in the assignment and enforcement of tax liens and assessments, while also protecting property owners from excessive fees and unregulated actions by assignees. Overall, these changes are designed to create a more equitable and transparent process for the collection of municipal taxes and assessments.

Statutes affected:
Raised Bill: 12-195h, 7-254, 7-258, 7-239, 49-92o, 49-92p
BA Joint Favorable: 12-195h, 7-254, 7-258, 7-239, 49-92o, 49-92p
File No. 183: 12-195h, 7-254, 7-258, 7-239, 49-92o, 49-92p