Select Committee on Veterans' Affairs
Finance, Revenue and Bonding Committee
Planning and Development Committee
AN ACT CONCERNING INTEREST OWED ON PROPERTY TAXES BY MEMBERS OF THE ARMED FORCES CALLED TO ACTIVE SERVICE
SUMMARY: This act (1) expands, to those serving in Afghanistan, the law's waiver of property tax interest for certain U. S. armed forces members called to active service in Iraq and (2) authorizes municipalities' legislative bodies to vote to waive property tax interest for certain U. S. armed forces members who have been called to active service outside the state.
By law, a town must charge 18% annual interest (1. 5% per month) on delinquent property taxes (CGS § 12-146). The statutes define “armed forces” to mean the U. S. Army, Navy, Marine Corps, Coast Guard, Air Force, their reserve components, and the state's National Guard under federal service (CGS § 27-103).
EFFECTIVE DATE: October 1, 2011, and applicable to assessment years beginning on or after that date.
ACTIVE SERVICE AND INTEREST OWED ON PROPERTY TAXES
Afghanistan
The law prohibits municipalities from charging or collecting interest for one year on any property tax, or a tax installment, for any state resident who is (1) a member of the armed forces and called to active service for military operations that the President authorizes for military action against Iraq and (2) serving in the Middle East on the final day the tax payment is due. The act extends the waiver to those (1) called to active service for military action in Afghanistan and (2) serving outside the United States, rather than only in the Middle East, when a property tax payment is due.
Active Service Outside the State
The act authorizes a municipality, with approval of its legislative body, to elect not to charge or collect interest for one year on any property tax, or tax installment, which a state resident who is a U. S. armed forces member or member of another state's National Guard owes, if he or she:
1. was called to active service in the U. S. armed forces and
2. is serving outside the state on the final day a payment is due.
OLR Tracking: JRH: ND: PF: ro