State Summary

Tax Collection Method: Deeds
Primary Bidding Type: Premium
Redemption Period: 6 months (60 days for abandoned properties)
Redemption Interest Rate/Flat Penalty: 18% simple interest per annum

The following information summarizes the life cycle, requirements, and administering of tax liens in the state of Connecticut. The state actually mandates that each municipality, instead of each county, is responsible for determining when property taxes are due and when they become delinquent. There are Connecticut Taxation laws that pertain to all municipalities in Connecticut, but be aware that there are differences between the municipalities as well. The word, "typical", used in the FAQs below, indicates that most municipalities use this procedure/follow this convention, but not all municipalities.

Is Connecticut a tax lien or a tax deed state?
Connecticut is a tax deed state. However, some of the bigger municipalities in the state, such as Hartford and Norwalk, hold tax lien "bulk sales" where multiple large portfolios of tax liens are sold to investors

What is the name of the local official whom typically collects property taxes in Connecticut?
Tax Collector.

When are property taxes due in the state of Connecticut?
Due dates for property taxes can vary by municipality, but many municipalities collect two tax installments, one installment due July 1, and the other due January 1 the following year.

When do property taxes become delinquent in the state of Connecticut?
The date that property taxes become delinquent can vary by municipality, but many municipalities give residents a one-month "grace period" for paying their taxes. So, based on the common due dates of July 1 and January 1, the delinquent dates are August 1 and February 1, respectively. Interest charge on delinquent tax bills is 1.5% per month.

When does the typical Connecticut municipality make the delinquent tax list available?
Connecticut municipalities are governed by law to post a list of "past due" properties within five days of those properties officially becoming delinquent. This list will be published in a local newspaper and/or posted in a highly visible location within the municipality. An advertisement of delinquent properties for sale will generally be posted in a local newspaper three or four weeks before a public tax sale. Some municipalities post their delinquent tax lists and tax sale lists on their Web site.

What is the name of the local official whom typically conducts tax deed sales in Connecticut?
Typically, the Tax Collector is assigned this duty. In New Haven County, the County Marshals hold tax deed sales.

When does the typical Connecticut municipality hold their annual tax deed sale?
The date of the annual tax deed sales vary by municipality. Tax lien "bulk sales" in the larger municipalities typically take place in May.

What are the registration requirements for the typical Connecticut tax deed sale?
The registration requirements vary by municipality. Some municipalities require an up-front deposit due at time of registration. This deposit is either applied toward any purchases, or refunded to unsuccessful bidders.

What is the bidding type used at a typical Connecticut tax deed Sale sale?
Premium bidding at a public outcry auction. The few larger municipalities that sell tax lien portfolios typically use a sealed bid method.

What forms of payment are generally accepted at a typical Connecticut tax deed sale?
Cash, certified check or money order.

What are the general terms of payment for the typical tax deed purchased at a Connecticut tax deed sale?
Generally, the full amount of the winning bid is either due the day of the sale, or just a few days after the sale. Some counties require an initial deposit at the time of registration, which can be as high as $5000. If the bidder is unsuccessful, or if his/her purchase is less than the deposit amount. the money will be refunded accordingly.

What is the maximum return (interest rate and/or flat penalty rates) investors earn while they hold the redeemable tax deed?
The state-mandated interest rate is 18% per annum, or 1.5% accrual per month.

Is the interest rate applied only to the minimum bid amount for each property, or is this interest rate also assessed on the premium or "overbid" paid for the property during the auction?
Interest only accrues on the mininum bid amount. The "overbid" is returned to the bidder if the deed is redeemed, but without interest.

What is the redemption period for redeemable tax deeds in Connecticut?
6 months from the day that the tax deed is first offered for sale to the general public. For abandoned properties, the redemption period is 60 days (if approved by the municipality).

Are tax deeds offered "over-the-counter" in Connecticut?
Over-the-counter sales of tax deeds are legally possible in Connecticut, but not common.

What is the name of the local official whom typically determines the values of properties on a annual basis?
Assessor

Does the typical Connecticut municipality feature a Geographic Information System (GIS) application on their Web site?
Yes, many of the municipality Web sites feature GIS applications. GIS applications can be very useful for tax lien and tax deed investors because most of them feature aerial photos (some with zooming options), and a lot of them are integrated with tax bills and assessor/appraisal records, which simplifies the task of researching properties online.

For more information on the statutes regarding property tax collection, tax liens, and tax deeds in the state of Connecticut, refer to the General Statutes of Connecticut. A few of the key statutes include:

Sec. 12-141 Collection of taxes; definitions.
Sec. 12-142 Installments; due date.
Sec. 12-144b Tax payment applicable to oldest obligation on specific property.
Sec. 12-145 Notice to pay taxes. Rate of interest when delinquent. Waiver.
Sec. 12-146 Tax, when delinquent. Interest. Waiver of interest, when.
Sec. 12-157 Method of selling real estate for taxes.
Sec. 12-159 Collector's deed as evidence. Irregularities.
Section 12-172 Tax liens; precedence; enforcement.
Sec. 12-173 Certificate continuing lien. Discharge. Valid notice.
Sec. 12-177 Certificates continuing tax liens; ordinances in certain large municipalities.
Sec. 12-181 Foreclosure of tax liens.
Sec. 12-189 Right of redemption. Title to vest upon failure to redeem. Certificate of redemption.
Sec. 12-195h Assignment of liens.

Connecticut Municipality Reference