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HB 5500

AN ACT CONCERNING THE ABATEMENT OR REFUND OF INTEREST ON DELINQUENT MUNICIPAL PROPERTY TAXES OR SEWERAGE SYSTEM USE CHARGES OWED BY CERTAIN COMMON INTEREST COMMUNITIES.

2026 Regular Session Introduced by Andre Baker and 10 co-sponsors

Connecticut bill authorizes municipalities to waive interest on delinquent property taxes, reducing collection barriers but potentially decreasing local government revenue.

FILE NO. 718
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Bill Summary · HB 5500

Legislative bill overview

HB 5500 would allow municipalities in Connecticut to waive accumulated interest on delinquent property taxes under specified circumstances. The bill gives local governments discretionary authority to forgive interest penalties while still collecting the principal tax amount owed.

Why is this important

Property tax delinquency can create barriers for homeowners and businesses attempting to resolve tax debt, as accumulated interest can substantially exceed the original obligation. This measure could help property owners catch up on obligations while providing municipalities with recovered tax revenue they might otherwise never collect. It also addresses equity concerns, as interest accumulation disproportionately affects lower-income property owners who face financial hardship.

Potential points of contention

  • Municipal revenue impact: Waiving interest reduces local government revenue, potentially affecting town budgets, schools, and services that depend on property tax collections
  • Fairness to compliant taxpayers: Property owners who paid taxes on time may view interest waivers as unfairly benefiting delinquent payers
  • Implementation specifics: The bill's framework for determining which delinquencies qualify for waivers is unclear—criteria could significantly affect who benefits and how much revenue municipalities lose
  • Moral hazard concerns: Interest waivers might incentivize future tax delinquency if property owners expect similar relief

Compiled from official sources — confirm details with the bill’s official record.

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