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HB05500 • 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.

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.

Housing Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Planning and Development Committee
Last action
2026-04-24
Official status
File Number 718
Effective date
Not listed

Plain English Breakdown

The official source material does not provide details about the extent of potential revenue loss or costs to municipalities beyond mentioning that it may occur starting in FY27.

Act About Reducing Interest on Late Taxes for Certain Housing Communities

This act allows certain municipalities and water pollution control authorities to waive or refund interest on late property taxes and sewer charges for large housing communities that are in financial trouble.

What This Bill Does

  • Allows a city or town government to reduce or return the extra money (interest) owed when a big housing community with more than 500 units is behind on their property taxes, provided it is under court supervision.
  • Allows water pollution control groups in cities and towns to reduce or return the extra money (interest) owed when a big housing community with more than 500 units is behind on their sewer charges, provided it is under court supervision.

Who It Names or Affects

  • Large housing communities with over 500 units that are in financial trouble and under court supervision.
  • City and town governments, as well as water pollution control groups within these municipalities.

Terms To Know

Common interest community
A large housing complex or development where multiple people own individual units but share common areas like parks or roads.
Receivership
When a court takes control of an organization's finances because it is in financial trouble and needs help managing its money.

Limits and Unknowns

  • The act does not specify how much interest can be waived or refunded.
  • It only applies to communities with more than 500 units that are under court supervision for their financial troubles.
  • There is no information on the total cost or revenue loss this could cause municipalities.

Bill History

  1. 2026-04-24 Connecticut General Assembly

    Favorable Report, Tabled for the Calendar, Senate

  2. 2026-04-24 Connecticut General Assembly

    Senate Calendar Number 453

  3. 2026-04-24 LCO

    File Number 718

  4. 2026-04-22 Connecticut General Assembly

    House Adopted House Amendment Schedule A 3873

  5. 2026-04-22 Connecticut General Assembly

    House Passed as Amended by House Amendment Schedule A

  6. 2026-04-01 LCO

    Reported Out of Legislative Commissioners' Office

  7. 2026-04-01 Connecticut General Assembly

    Favorable Report, Tabled for the Calendar, House

  8. 2026-04-01 Connecticut General Assembly

    House Calendar Number 255

  9. 2026-04-01 LCO

    File Number 336

  10. 2026-03-26 LCO

    Referred to Office of Legislative Research and Office of Fiscal Analysis 03/31/26 5:00 PM

  11. 2026-03-16 LCO

    Filed with Legislative Commissioners' Office

  12. 2026-03-13 PD

    Joint Favorable Substitute

  13. 2026-03-06 Connecticut General Assembly

    Public Hearing 03/11

  14. 2026-03-05 Connecticut General Assembly

    Referred to Joint Committee on Planning and Development

Official Summary Text

To waive interest on certain delinquent property taxes owed by a housing cooperative known as Success Village located in the city of Bridgeport, in part, and the town of Stratford, in part.

Current Bill Text

Read the full stored bill text
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

sHB5500 File No. 718

sHB5500 / File No. 718 2

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

sHB5500 File No. 718

sHB5500 / File No. 718 3

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.
sHB5500 File No. 718

sHB5500 / File No. 718 4

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)