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repealed and the following is substituted in lieu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