DEFERMENT AND LOW INTEREST RATE PROGRAM

TAX Deferment and Low Interest Rate Programs for Colchester’s Taxpayers

We are aware that many of our residents might have suffered financial hardship by the COVID-19. Business owners and residents – please know that the tax office is here to work through this situation. I am encouraging everyone who has suffered a financial impact because of this crisis to take advantage of the programs below as they are designed to help you get back on your feet.  I am always available to discuss both options with you at any time.  Please contact the tax office at 860.537.7210 or by email [email protected].   Together we will get through this crisis

On April 1, 2020 Governor Lamont issued Executive Order 7S in response to the COVID-19 Pandemic.  This order includes language allowing local legislative bodies the authority to adopt programs to support local taxpayers affected by the crisis.

At a special meeting on April 21, 2020, the Board of Selectman voted and passed a resolution to adopt the Governor’s Executive Order 7S: Deferment of Taxes with application and Low interest Rate programs.

**Taxes paid by an escrow agent ( mortgage company) are not eligible for these plans and are expected to remit payments no later than August 3, 2020**

DEFERMENT PROGRAM (Must complete form OPM M-COVID19 by July 1, 2020)

The intent and purpose of the deferment is to allow taxpayers who attest to a significant economic impact by Covid-19 additional time to pay their tax bill.  The only thing that is deferred is the deadline, not the tax.  Eligible taxpayers are entitled to defer their payment due date deadline for 3 months, instead of the usual one month (30 days). This plan covers any real estate, motor vehicles, personal property; business tax; and any municipal water & sewer bills.

Taxpayers must complete OPM M-COVID19 form and submit it no later than July 1, 2020 to the tax collector’s office. Any forms submitted after this deadline will not be eligible.

This program will end on October 1, 2020.  Any tax which remains after October 1, 2020 will revert back to the normal interest rate of 1.5% per month going back to the due date of July 1, 2020.

Water & Sewer Bills that are due May 1, 2020 will now be due August 1, 2020.  You must APPLY by July 1, 2020. 

PDF fillable forms can be found on the Tax Collector’s website.  We can also email a form or arrange for you to pick one up at town hall. Completed and signed forms can be dropped off in the town’s night drop box; Mailed to us at Tax Collector’s Office 127 Norwich Ave; Colchester, CT  06415 or emailed to my attention at [email protected].   

LOW INTEREST RATE PROGRAM (No form required)

This plan addresses the rate of interest that is to be charged on a delinquent or past due bill. Any real estate, motor vehicle, personal property/business tax and water & sewer bills that comes due at any time between April 1, 2020 and July 1, 2020 are eligible for a lower rate of interest: 0.25% per month, or 3% per year, from the due date of the tax, for a period of three months only.   This program provides three months from April 1, 2020 through July 1, 2020 from the due date where taxpayers would be able to pay at a reduced interest rate, Taxpayers would not have an extended grace period, but would be paying significantly less interest if they pay late.  This plan would remain in force only for three months from the due date of July 1; it would end after October 1, 2020.  Taxpayers do not need to apply for this program.  Any tax which remains after October 1, 2020 will revert back to the normal interest rate of 1.5% per month going back to the due date of the tax bill.

 

Please contact the tax office at 860.537.7210 or by email [email protected] if you have any questions. We’re here to help.