Substitute Senate Bill No. 575
          Substitute Senate Bill No. 575

              PUBLIC ACT NO. 97-139


AN   ACT  CONCERNING  THE  REDEMPTION  PERIOD  FOR
MUNICIPAL TAX SALES.


    Be it enacted  by  the  Senate  and  House  of
Representatives in General Assembly convened:
    Section  12-157 of  the  general  statutes  is
repealed and the  following is substituted in lieu
thereof:
    (a) When a  collector  levies  one or more tax
warrants on real  estate, he shall prepare notices
thereof, containing the  name  of  the taxpayer, a
legal description of  the real property, including
the street address,  upon which taxes are due, the
amount of the  tax  or  taxes  due,  including any
interest and charges  attributable to the property
as  of the  last  day  of  the  month  immediately
preceding the notice,  a statement that additional
taxes, interest, fees and other charges authorized
by  law accruing  after  the  last  of  the  month
immediately preceding the  notice will be added to
the amount indicated  as  due  and  owing  in  the
notice,  and the  time  and  place  of  sale.  The
collector shall post  one  notice on a signpost in
the town where  such  real  estate is situated, if
any, or at  some  other  exterior  place  near the
office  of  the   town  clerk,  which  is  nearest
thereto; one shall  be  filed  in the town clerk's
office of such  town  and  such  town  clerk shall
record and index  the  same  as a part of the land
records of such  town,  and  one  shall be sent by
certified mail, return  receipt  requested, to the
taxpayer and each  mortgage,  lienholder and other
record encumbrancer of  record whose interest will
be affected by  the sale. Such posting, filing and
mailing shall be done not more than twelve and not
less than nine  weeks  before the time of sale and
shall constitute a  legal  levy of such warrant or
warrants upon the  real  estate referred to in the
notice.  Such  collector   shall  also  publish  a
similar notice for three weeks, at least once each
week, in a  newspaper  published  in such town, if
any, otherwise in  a  newspaper  published  in the
state having a  general  circulation in such town.
The first notice  shall be published beginning not
more than twelve  and  not  less  than  nine weeks
before the time  of  sale  and  the  last shall be
published not more  than  four weeks nor less than
two weeks before  such sale. He shall also send by
certified mail, return  receipt  requested, to the
delinquent  taxpayer  and   to   each   mortgagee,
lienholder  and other  record  encumbrancer  whose
interest in such property will be affected by such
sale, a similar notice which shall not be required
to list information  pertaining  to  properties in
which the person  to  whom  the notice is directed
has no interest. The notice shall be sent at least
twice, the first not more than eight nor less than
five weeks before  such sale and the last not more
than four weeks  nor  less  than  two weeks before
such sale. The  notice  shall  be addressed to his
place of residence,  if known to the collector, or
to the address,  or  the  agent of such person, to
which such person  has requested that tax bills be
sent. If there is no address of such person, or if
no such agent  is  given  in  the  records of such
town, the notice  shall be sent to the place where
such person regularly  conducts  business or other
address as the collector believes will give notice
of  the  levy   and   sale.   If  a  person  is  a
corporation, limited partnership  or  other  legal
entity, the notice  may be sent to any person upon
whom process may  be  served  to  initiate a civil
action   against   such    corporation,    limited
partnership or entity. If no place of residence or
business is known  and cannot be determined by the
tax collector for  any owner, taxpayer, mortgagee,
lienholder or other encumbrancer whose interest in
the property will be affected by the sale, in lieu
of notice by  certified  mail  as provided in this
subsection, the notice,  together with the list of
mortgagees,   lienholders,   and    other   record
encumbrancers whose interests in the property will
be affected by  such sale, shall be published in a
newspaper published in  this state, having a daily
general circulation in  the  town  in  which  such
property is located  at least twice, the first not
more than eight  weeks  nor  less  than five weeks
before such sale  and  the last not more than four
weeks nor less than two weeks before such sale.
    (b) The collector may, for any reason, adjourn
such sale from  time  to  time  by  causing public
notice of such  adjournment and the time and place
of such adjourned  sale to be given either by oral
announcement or posting of a written notice at the
time and place  designated  for  the  sale  in the
notices of such sale. If the adjourned date is set
for a date  more  than three days from the date of
the original or  rescheduled  sale  date,  the tax
collector shall provide  a postage prepaid written
notice of the  new  time  and place of the sale to
the  delinquent  taxpayer   and   each  mortgagee,
lienholder  and other  record  encumbrancer  whose
interest will be affected by the sale.
    (c) At the  time  and  place  stated  in  such
notices, or, if  such  sale  is  adjourned, at the
time  and  place   specified   at   the   time  of
adjournment as aforesaid,  such  collector (1) may
sell at public  auction  to the highest bidder all
of said real  property,  to pay the taxes with the
interest, fees and  other  charges allowed by law,
including, but not  limited  to, those charges set
forth in section  12-140,  or  (2) may sell all of
said real property  to  his  municipality if there
has  been  no   bidder   or   the  amount  bid  is
insufficient to pay the amount due.
    (d) The collector  shall post, at the time and
place of the  sale,  a  written notice stating the
amount of all  taxes,  interest,  fees  and  other
charges authorized by  law  with  respect  to each
property to be sold. The tax collector may publish
or announce any  rules  for the orderly conduct of
the  auction  and   the   making   of  payment  by
successful bidders which are not inconsistent with
the requirements of  law. The tax collector or the
municipality   may   retain    the   services   of
auctioneers, clerks and  other  persons  to assist
the tax collector  in  the conduct of the sale and
the cost of  such  persons paid for their services
shall  be  added   to   the  taxes  due  from  the
delinquent taxpayer. If  more than one property is
sold, the tax collector shall apportion such costs
equally among all the properties.
    (e) Within two  weeks  after  such  sale,  the
collector shall execute  a  deed  thereof  to  the
purchaser or to  the  municipality  conducting the
sale and shall lodge the same in the office of the
town clerk of  such  town,  where  it shall remain
unrecorded one year from the date of such sale.
    (f) Within sixty  days  after  such  sale, the
collector  shall  cause   to  be  published  in  a
newspaper having a  daily  general  circulation in
the town in  which  the  real property is located,
and shall send  by  certified mail, return receipt
requested, to the  delinquent  taxpayer  and  each
mortgagee,    lienholder    and    other    record
encumbrancer whose interest  in  such  property is
affected by such  sale,  a notice stating the date
of  the  sale,   the   name  and  address  of  the
purchaser, the amount  the  purchaser paid for the
property and the  date  the redemption period will
expire. The notice  shall include a statement that
if redemption does  not  take  place  by  the date
stated and in  the  manner  provided  by  law, the
delinquent   taxpayer,   and    all    mortgagees,
lienholders  and other  record  encumbrancers  who
have received actual  or  constructive  notice  of
such  sale  as   provided   by   law,  that  their
respective  titles,  mortgages,  liens  and  other
encumbrances   in   such    property    shall   be
extinguished. [If] NOT LATER THAN SIX MONTHS AFTER
THE DATE OF  THE  SALE OR WITHIN SIXTY DAYS IF THE
PROPERTY WAS ABANDONED  OR  MEETS OTHER CONDITIONS
ESTABLISHED   BY   ORDINANCE    ADOPTED   BY   THE
LEGISLATIVE BODY OF  THE  TOWN,  IF the delinquent
taxpayer, mortgagee, lienholder  or  other  record
encumbrancer whose interest  in  the property will
be affected by  such  sale,  [within one year from
the date of  such  sale,]  pays  or tenders to the
collector,  the  amount  of  taxes,  interest  and
charges which were  due  and  owing at the time of
the  sale together  with  interest  on  the  total
purchase price paid  by  the purchaser at the rate
of eighteen per  cent  per  annum from the date of
such  sale,  such   deed,   executed  pursuant  to
subsection (e) of this section, shall be delivered
to  the  collector   by   the   town   clerk   for
cancellation and the  collector  shall  provide  a
certificate of satisfaction  to  the person paying
or tendering the  money  who,  if  not  the person
whose primary duty it was to pay the tax or taxes,
shall  have  a  claim  against  the  person  whose
primary duty it  was  to pay such tax or taxes for
the amount so  paid,  and  may add the same to any
claim for which  he has security upon the property
sold, provided the  certificate of satisfaction is
recorded on the  land records but the interests of
other  persons  in   the  property  shall  not  be
affected.  Within ten  days  of  receipt  of  such
amounts in redemption  of the levied property, the
collector shall notify  the purchaser by certified
mail, return receipt  requested, that the property
has been redeemed  and  shall tender such payment,
together  with  the   amount   held   pursuant  to
subparagraph (A) of  subdivision (1) of subsection
(i) of this  section, if any, to the purchaser. If
the  purchase money  and  interest  are  not  paid
within such year,  the  deed shall be recorded and
have full effect.
    (g)   During  the   redemption   period,   the
purchaser  or  the   municipality   shall  have  a
sufficient  insurable interest  in  buildings  and
improvements upon such  property  to  insure  them
against fire and  other risk of physical loss, and
may   petition  the   Superior   Court   for   the
appointment of a  receiver  or for other equitable
relief if there shall be imminent danger of damage
or  destruction  thereto  or  imminent  danger  of
injury to persons  or  to other property resulting
from   conditions   thereon    or   on   adjoining
properties.  The  purchaser  or  the  municipality
shall not be liable to any person, or subjected to
forfeiture of their  interest, solely by reason of
acquisition by the person of the tax deed, for any
condition  existing  or   occurrence   upon   such
property  or  adjoining   public   sidewalks   and
streets, or for  any  failure  to act to remedy or
investigate  any  such   condition  or  occurrence
during such one-year  period.  The expenses of any
receiver  appointed on  the  application  of  such
purchaser or municipality  in  excess of any rents
or profits paid  to the receiver shall be added to
the amount of  the  purchase  money  and  interest
required to be  paid  or tendered by any person to
the purchaser or  municipality for the collector's
deed and paid  to  the  party  that  incurred such
expenses.
    (h) Any municipality holding a lien for unpaid
taxes on real  estate, other than the municipality
conducting the sale,  may  purchase  all  of  such
property at a tax sale.
    (i) (1) If  the  sale  realizes  an  amount in
excess of the  amount needed to pay all delinquent
taxes, interest, penalties,  fees,  and costs, the
amount  of  the   excess   shall  be  held  in  an
interest-bearing escrow account  separate from all
other accounts of  the  municipality.  (A)  If the
property is redeemed  prior  to  the expiration of
the [one-year] REDEMPTION  period, the amount held
in  escrow shall,  within  ten  days  of  the  tax
collector  receiving  notice   of  redemption,  be
turned over to  the purchaser. Any interest earned
shall be the  property of the municipality. (B) If
the property is  not  redeemed  in  the [one-year]
REDEMPTION period, the  AMOUNT  HELD IN ESCROW MAY
BE USED TO  PAY  THE  DELINQUENT  TAXES, INTEREST,
PENALTIES, FEES AND COSTS ON ANY OTHER PROPERTY OF
THE  TAXPAYER  LOCATED   IN  THE  TOWN,  INCLUDING
PERSONAL PROPERTY AND  MOTOR VEHICLES. IN THE CASE
OF  SUBPARAGRAPH (B),  THE  tax  collector  shall,
within  ten  days   of   the   expiration  of  the
[one-year] REDEMPTION period,  pay to the clerk of
the court for  the  judicial district in which the
property is located  the  amount  held  in  escrow
REMAINING  AFTER  PAYING   THE  DELINQUENT  TAXES,
INTEREST, FEES, PENALTIES  AND  COSTS  OWED BY THE
TAXPAYER TO THE  MUNICIPALITY.  The  tax collector
shall, within five  days  of  the payment, provide
notice to the  delinquent taxpayer, any mortgagee,
lienholder, or other  encumbrancer of record whose
interest in such property is affected by the sale,
by certified mail, return receipt requested of the
name and address  of the court to which the moneys
were  paid,  the   person's   right   to  file  an
application with the  court  for  return  of  said
money, and the amount of money paid to the court.
    (2) If the tax collector pays to the court any
moneys pursuant to subparagraph (B) of subdivision
(1) of this  subsection,  the delinquent taxpayer,
any mortgagee, lienholder  or  other  encumbrancer
whose interest in such property is affected by the
sale may, within  ninety  days of the date the tax
collector paid the  moneys  to  the court, file an
application  with the  court  for  return  of  the
proceeds. Any person  may  make an application for
payment of moneys  deposited  in court as provided
for in this  subsection  to the superior court for
the judicial district  in  which the property that
is the subject  of  the proceedings referred to is
located, or if said court is not in session to any
judge thereof, for  a  determination of the equity
of the parties  having an interest in such moneys.
Notice of such  application shall be served in the
same manner as  to  commence a civil action on all
persons  having an  interest  of  record  in  such
property  on the  date  the  collector's  deed  is
recorded. The court  or  judge upon such motion or
upon its own motion may appoint a state referee to
hear the facts  and to make a determination of the
equity  of  the   parties  in  such  moneys.  Such
referee, after providing at least ten days' notice
to the parties interested of the time and place of
hearing, shall hear  the applicant and any parties
interested, take such  testimonies as such referee
deems material and  determine  the equities of the
parties having a  record  interest  in such moneys
and immediately report  to the court or judge. The
report  shall  contain  a  detailed  statement  of
findings by the  referee, sufficient to enable the
court to determine  the  considerations upon which
the referee based  his conclusions. The report may
be rejected for  any irregular or improper conduct
in the performance  of the duties of such referee.
If the report  is  rejected,  the  court  or judge
shall  appoint  another   referee   to  make  such
determination  and  report.   If   the  report  is
accepted, such determination of the equities shall
be conclusive upon  all  parties  given  notice of
such hearing, subject  to  appeal to the Appellate
Court. If no  appeal  to  the  Appellate  Court is
filed within the time allowed by law, or if one is
filed and the  proceedings  have  terminated  in a
final judgment determining  the amount due to each
party, the clerk  shall  send  a certified copy of
the statement of  compensation and of the judgment
to the prevailing  party  or  parties, as the case
may be, which  shall,  upon  receipt  thereof, pay
such parties the amount due them as compensation.
    (3) If no application is filed with the court,
any moneys held  by the court shall escheat to the
state pursuant to  the  provisions  of part III of
chapter 32.

Approved June 13, 1997