Penalties, interest charges and legal fees are intended to deter delinquency.
Connecticut General Statutes dictate that interest of 1.5% per month retroactive to the due date or 18% per annum be charged on all delinquent bills. There is a $2.00 minimum interest charge.
By Statute C.G.S.§§ 12-146, failure to receive a tax bill does not invalidate the tax or the interest (S. 12-130). Change of address should be reported promptly to the Department of Motor Vehicles.
Delinquent statements are mailed after the thirty day grace period has elapsed. These notices are followed by demands for payment. Thirty days after demand notices are sent, all remaining outstanding tax bills may have an Alias tax warrant issued, which imposes an additional $6.00 fee. These may be mailed or delivered by a Sheriff or Constable who, by statue, is entitled to 15% of the monies collected or a minimum of $20.00 and reasonable expenses.
All delinquent Motor Vehicle Tax Bills are reported to the Department of Motor Vehicle which then denies subsequent registration of any vehicle in that name or names. Payment in full by cash, money order, cashier’s check, or credit/debit card is then required in order to obtain clearance for registration of the vehicle.
Property tax liens secure the payment of taxes by preventing the sale of a property unless the amount of lien is paid to the lienholder. Notices of intent to lien are mailed annually and fifteen days allotted for payment after which the lien is filed on the land records. The tax lien carries with it an additional $24.00 dollar penalty and is superior to mortgage liens.
Checks that are returned due to non-sufficient funds are subject to a penalty of $15.00. The maker of the check is notified and payment is requested in the form of cash, money order or certified check. When a bad check is received and clearance has been given for delinquent motor vehicle taxes, DMV may be notified to suspend registration.