Planning and Development Committee
JOINT FAVORABLE REPORT
Bill No.: SB-1064
AN ACT CONCERNING A WAIVER OF INTEREST ON PROPERTY TAX
PAYMENTS FOR CERTAIN REAL AND PERSONAL PROPERTY AND THE
Title: INTEREST RATE FOR CERTAIN TAXES AND ASSESSMENTS.
Vote Date: 3/31/2021
Vote Action: Joint Favorable Substitute
PH Date: 3/22/2021
File No.: 564
Disclaimer: The following JOINT FAVORABLE Report is prepared for the benefit of the
members of the General Assembly, solely for purposes of information, summarization and
explanation and does not represent the intent of the General Assembly or either chamber
thereof for any purpose.
SPONSORS OF BILL:
Planning and Development Committee
REASONS FOR BILL:
This bill would allow the waiver of interest charged on property tax payments, taxes and
assessments for certain real estate and personal property or reduce the rate charged. This
would be for 2020 tax year and would give relief to many businesses and property owners
who have suffered financially during the pandemic.
Substitute Language
Added Section 2: This would give statutory consistency
Section 3: interest rate of delinquent portion will be reduced to twelve percent.
Section 4: any unpaid is changed to special assessment imposed by a municipality not paid
within 30 days after due date shall be delinquent and subject to interest from such due date
at the interest rate provided by general statutes. The word fine is changed to special
assessment.
Section 5: payment of taxes will also include delinquent taxes and any interest thereon.
RESPONSE FROM ADMINISTRATION/AGENCY:
None Expressed
NATURE AND SOURCES OF SUPPORT:
Jim Perras, CEO, Home Builders & Remodelers Association of Connecticut, Inc.
Mr. Perras is in support of this bill. This would allow municipalities to waive interest on
property taxes due for 2020 tax year for real and personal property held by persons, and a
variety of other entities. Many businesses have been impacted by government-imposed
restrictions to help prevent the spread of COVID-19. Many of these businesses are on the
brink of ruin. This bill can be the difference of a business closing permanently or being able
to eventually recover. Healthy businesses allow for higher employment numbers and
employees better able to achieve the American dream of owning a home.
NATURE AND SOURCES OF OPPOSITION:
Betsy Gara, Connecticut Council of Small Towns
Ms. Gara opposes this bill. Section 2-4 of this bill significantly reduces the rate of interest on
delinquent property taxes. The current rate is to encourage that these taxes be paid on time.
It also compensates municipalities for the loss that occurs when the revenue is not received
on time. Given the fiscal concerns facing the municipalities and the uncertain impact of
COVID 19 on municipal costs and local revenues, COST urges lawmakers to refrain from
adopting this legislation as it will undermine the ability of these municipalities to rely on
stable, predictable revenue.
Elizabeth Gara, Executive Director, Connecticut Water Works Association
Ms. Gara opposes this bill. Municipal water departments rely on revenues from effective debt
collection practices to assist them in maintaining water systems that ensure residents and
businesses have safe, high quality public water supplies. If allowed to defer payments or
reduce the interest rate on unpaid bills revenue collection will be hindered. The current
interest rate is an effective tool when collecting overdue bills.
Randy Collins, Advocacy Manager and Donna Hamzy, Advocacy Manager, Connecticut
Conference of Municipalities
CCM opposes this bill. Municipalities are almost wholly dependent upon property tax
revenue, the timely payment of taxes is critical to ensuring that our towns and cities can meet
financial obligations, by charging interest and penalties as a tool, it ensures taxes are paid on
time. When taxes are not paid on time it shifts the burden to other taxpayers or requires
municipalities to use needed and limited budget reserves to meet their contractual
obligations.
Reported by: Bonnie Gray, Asst. Clerk Date: 4/21/2021
Page 2 of 2 SB-1064


Statutes affected:
Raised Bill: 12-146
PD Joint Favorable Substitute: 12-145, 12-146
File No. 564: 12-145, 12-146
APP Joint Favorable: 12-145, 12-146