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sHB5500 / File No. 718 1
House of Representatives
File No. 718
General Assembly
February Session, 2026 (Reprint of File No. 336)
Substitute House Bill No. 5500
As Amended by House Amendment
Schedule "A"
Approved by the Legislative Commissioner
April 24, 2026
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.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) ( Effective from passage ) (a) Notwithstanding the 1
provisions of chapter 204 of the general statutes, a municipality may, by 2
vote of its legislative body, (1) abate all or a portion of the total amount 3
of interest on any delinquent real property taxes owed to the 4
municipality by a common interest community, as defined in section 47-5
202 of the general statutes, that is composed of more than five hundred 6
units, or (2) refund all or a portion of the total amount of such interest 7
paid on such taxes by such community, provided to be eligible for such 8
abatement or such refund pursuant to this section, such community 9
shall be in receivership pursuant to an order of the Superior Court. 10
(b) A municipal water pollution control authority may, by vote of the 11
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authority, (1) abate all or a portion of the total amount of interest on any 12
delinquent sewerage system use charge owed to the municipality by a 13
common interest community, as defined in section 47-202 of the general 14
statutes, that is composed of more than five hundred units, or (2) refund 15
all or a portion of the total amount of such interest paid on any such use 16
charge by such community, provided to be eligible for such abatement 17
or such refund pursuant to this section, such community shall be in 18
receivership pursuant to an order of the Superior Court. 19
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage New section
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The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of
the General Assembly, solely for purposes of information, summarization and explanation and do not
represent the intent of the General Assembly or either chamber thereof for any purpose. In general,
fiscal impacts are based upon a variety of informational sources, including the analyst’s professional
knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final
products do not necessarily reflect an assessment from any specific department.
OFA Fiscal Note
State Impact: None
Municipal Impact:
Municipalities Effect FY 27 $ FY 28 $
Various Municipalities Potential
Revenue
Loss
Potential Potential
Various Municipalities Potential
Cost
Potential Potential
Explanation
The bill allows municipalities and water pollution control authorities
to abate all or a portion of interest on certain delinquent property taxes
owed by a common interest community that meets certain
requirements. This results in a revenue loss to municipalities beginning
in FY 27 that choose to abate any delinquent property taxes.
The bill also allows municipalities and water pollution control
authorities to refund all or a portion of interest that has already been
paid if the common interest community meets certain requirements.
This results in a cost to municipalities beginning in FY 27 to the extent
interest payments are refunded.
House "A" eliminates the original bill and its associated fiscal impact,
and results in the impact described above.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to the number and value of abatements
and refunds.
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OLR Bill Analysis
sHB 5500 (File 336, as amended by House "A") *
AN ACT CONCERNING THE ABATEMENT OR REFUND OF
INTEREST ON DELINQUENT MUNICIPAL PROPERTY TAXES
OWED BY CERTAIN COMMON INTEREST COMMUNITIES.
SUMMARY
This bill allows municipalities, by a vote of their legislative bodies, to
waive some or all of the interest on delinquent property taxes owed by
a common interest community that has more than 500 units and is in a
Superior Court-ordered receivership. Under the bill, municipalities may
also refund all or some of the interest the common interest community
has already paid.
The bill similarly allows water pollution control authorities to vote to
waive or refund some or all of the interest on delinquent sewer system
use charges that a qualifying common interest community owes or
owed.
*House Amendment "A" adds the provision on water pollution
control authorities.
EFFECTIVE DATE: Upon passage
COMMITTEE ACTION
Planning and Development Committee
Joint Favorable Substitute
Yea 21 Nay 0 (03/13/2026)