HB 05203 Summary

• Creates a property tax deferral program effective October 1, 2020, allowing municipalities to permit eligible elderly property owners to defer up to 50% of their property taxes annually.

• Establishes "qualified taxpayer" requirements including elderly status, 10 years Connecticut residency, 5 years occupancy as primary home, current tax payment status, homeowner's insurance, and income limits set by each municipality.

• Municipalities obtaining tax deferrals receive a lien on the property with interest compounded at up to 10% annually, with priority over all other liens except those filed by the same municipality.

• Upon property transfer between October 1 and August 1, deferred taxes are calculated pro-rata based on months of ownership, with the new owner liable for additional taxes within 30 days of notice.

• Upon the qualified taxpayer's death, heirs retain first priority to claim the property by paying deferred taxes plus interest in full.