Zoom
Monday night’s virtual Board of Alders meeting.
City residents who have been hard hit financially by the Covid-19 pandemic will receive an extra 90 days to pay their next set of property taxes.
And all city taxpayers, regardless of whether or not they’re hurting financially during this public health crisis, will benefit from a lower interest rate on overdue tax payments than the state usually allows the city to levy.
Local legislators voted to adopt those two new property tax relief programs Monday night during the latest full Board of Alders meeting.
The meeting took place entirely online via the Zoom teleconferencing app, as City Hall remains indefinitely closed to the public because of the state of emergency around the novel coronavirus outbreak.
Without any public discussion or elaboration Monday night, alders unanimously passed a resolution that opts the city into the two property tax relief programs that Gov. Ned Lamont first made available to Connecticut municipalities through his coronavirus-related executive order issued on April 1.
The local resolution states that both programs will benefit residents and taxpayers “who are struggling financially to deal with the effects of COVID-19.”
Mayor Justin Elicker has said repeatedly during his daily coronavirus-related press briefings that the city budget has already been hit hard by the pandemic, with precipitous revenue declines from delinquent property tax collection, building permits, parking meters, and parking tickets.
Deferment Program
Per the resolution, the first program, known as the Deferment Program, “allows eligible taxpayers, businesses, nonprofits and residents
who have suffered a significant adverse economic impact by COVID-19 and those that are providing relief to others significantly affected by the COVID-19 pandemic to defer up to 90 days the payment of real property, personal property and motor vehicles taxes.”
According to a state Office of Policy and Management (OPM) explainer document included in the Board of Alders meeting’s agenda packet, the Deferment Program pushes out the payment deadline for taxes until 90 days after the tax due date, instead of the usual 30 days.
Since New Haven’s next installment of property taxes is slated to come due on July 1, the last day to pay those taxes will be Oct. 1 (or 90 days from July 1), instead of Aug. 3 (Aug.1 falls on a Saturday this year.)
According to the explainer document, eligible participants in the Deferment Program are taxpayers, businesses, nonprofits, and residents who can “attest to or document significant economic impact by COVID-19, and / or those that document they are providing relief to those significantly affected by COVID-19.”
The tax relief program extends to landlords who rent apartments to tenants. The explainer document states that landlords must provide documentation to the city that “the property being taxed has, or will, suffer a significant income decline, or that commensurate forbearance was offered to the tenants or lessees.”
Digging even deeper into the landlord eligibility details, “commensurate forbearance” for tenants or either 25 percent of rent for the 90 days from the tax payment due date or a deferral of one month’s rent to be paid of the 90 day period.
Low Interest Rate Program
The second property tax relief program, known as the Low Interest Rate Program, “establishes a maximum interest rate of 3 percent for certain delinquent tax payments on real property, personal property or motor vehicles due and payable,” according to the local resolution.
The OPM explainer document states that this relief program is available to all residents, not just those who have suffered significant financial damage because of Covid-19.
It says that the state normally allows municipalities to charge interest at the rate of 1.5 percent per month, or 18 percent per year from the due date of the tax, with a portion of a month being considered a full month.
“This program will allow for a lower rate of interest: 0.25 percent per month, or 3 percent per year, from the due date of the tax, for a period of up to 90 days only.”
That means that, if a taxpayer pays his or her taxes after Aug. 3, 2020, they will not be paying 1.5 percent per month interest, but rather 0.25 percent per month interest instead.
Landlords are also eligible to take advantage of this property tax relief program, but only if they prove to the city that they have offered “commensurate forbearance” to tenants or lessees.
Click here to download information about the property tax relief programs.
East Rock Alder Anna Festa, Prospect Hill/Newhallville Alder Steve Winter, and Downtown Alder Abby Roth submitted a communication to the full board Monday, requesting a public hearing on the two newly adopted property tax relief programs.
“Each of these programs will provide critical extra time for people financially impacted by COVID-19, and those on the front lines of COVID-19, to pay property taxes during this unprecedented situation,” the alders wrote. “The Board of Alders has a responsibility to help ensure the process runs smoothly, so that it does not add stress to people’s lives during an already stressful time.”
Do the tenants who are not paying rent have to pay interest to the landlord on the back rent?