CT SB00472

Municipalities may assign tax liens on real property to third parties by municipal legislative resolution, with the assignee receiving the same powers and rights as the municipality regarding lien enforcement, priority, interest accrual, and collection fees.

Assignees must provide written notice within 30 days to mortgage holders of record and to taxpayers, including property identification, assignee contact information, and the amount of unpaid taxes, interest, and fees.

Notices to taxpayers must disclose any proposed payment plans and inform them that the assignee may seek to recover costs and reasonable attorneys' fees if foreclosure or other legal proceedings are initiated.

The Connecticut Law Revision Commission shall study the adequacy of municipal tax lien foreclosure processes, including feasibility of expedited procedures for small parcels with 10+ years of unpaid taxes and due process concerns, with recommendations due by January 1, 2017.

The assignment authority takes effect October 1, 2016, while the study requirement takes effect upon passage.