Question 1

Why have I received a notice of delinquency?

Accepted Answer

TaxServ was engaged by its municipal client to research and collect their delinquent receivables.  The municipality had attempted to contact your last known physical address notifying you of the debt.  If you moved, it was your responsibility to contact the municipality and the DMV notifying them of your address change.  The postal service does not provide change of address to the DMV or the municipality.

Question 2

Do I still owe the taxes if I move out-of-state?

Accepted Answer

Simply moving out of state is not a valid dispute. You must provide evidence of the date you registered the vehicle in your new state of residence. This is the date when your Connecticut registration is considered terminated.

Question 3

How can I owe this tax when I was able to re-register through the Connecticut DMV?

Accepted Answer

Re-registration through the Connecticut DMV is NOT a valid dispute. Being able to register or re-register a vehicle through the Connecticut DMV is NOT proof of payment of a delinquency or a waiver of the municipality’s right to collect a delinquent tax. There could be many reasons the DMV did not block your registration, such as your name differs slightly (use of a middle initial, married or maiden name, etc.) on the record, or there is some other data error. If the DMV data is incorrect, you are responsible for contacting the DMV and fixing any errors.

Question 4

What if I’ve never received a tax bill prior to this notice?

Accepted Answer

A claim that you did not receive a tax bill is not a valid dispute to the tax, and the interest and fees that have accrued. [CGS 12-130] “Failure to send out or receive any such bill or statement shall not invalidate the tax”. It is every taxpayer’s duty to understand their obligation to pay taxes.

Question 5

What do I provide if my vehicle has been sold, repossessed, stolen, destroyed, junked, or has been registered out-of-state?"

Accepted Answer

Please provide both of the following: (a) a plate return receipt from the Connecticut DMV; and (b) evidence showing the date of the sale, repossession, theft, complete destruction, junking or registration out-of-state as follows: 
Sale: Bill of Sale or Title Transfer; 
Repossession: Letter from the repossessing company; 
Theft: Police Report; 
Destruction: Statement from the insurance company; 
Junking: Junkyard Receipt; 
Registration Out of State: Copy of the registration 
Neither the Tax Collector nor the Tax Assessor will issue any credit or adjustment based solely on a letter or a telephone call. If you do not provide the evidence noted above, it will only prolong the dispute process and increase your balance due. 
The date indicated on your evidence is used to determine the amount of your credit, if any. There is a two-year deadline for applying for a partial credit ending on Dec 31 of the year after the tax came due. [CGS 12-71c(b)]. Using registration out-of-state as an example, if the registration occurred out-of-state more than two years ago you will not legally be entitled to a partial credit. But you may obtain a full credit of a particular tax year if the date of the registration out of state occurred before October 1 of the tax year identified on your notice. [CGS 12-57]. If the registration occurred within the last two years, the tax assessor will determine whether you can obtain a full or a partial credit of any of the taxes you owe. Please note that the tax year runs from October 1 through September 30 of the following calendar year. For example, if you registered your vehicle out of state in December of the tax year assessed against you, you will receive a credit for 9 months of the year. You will owe for three months (Oct, Nov, and Dec) plus any interest and fees on that amount.

Question 6

What is a Supplemental Tax?

Accepted Answer

A Supplemental Tax is assessed on a motor vehicle purchased during a tax year. For example, a 2018 supplemental tax would be billed against a vehicle in January 2020. The tax is assessed only for a portion of the year; a credit was automatically apportioned to the tax.  No further credit is applicable to this kind of tax.

Question 7

What documents do I need to provide to the tax collector?

Accepted Answer

For disputes regarding Motor Vehicle Taxes, acceptible forms of proof include the following:
 
a) A plate return receipt from the Connecticut DMV, and

b) Evidence showing the date of the sale, repossession, theft, complete destruction, junking or registration out-of-state.  As evidence of the date of the sale: (bill of sale or title transfer), for repossession: (letter from the repossessing company), theft: (police report), destruction: (statement from the insurance company), junking (junkyard receipt) or registration out of state: (copy of the registration).
 
Neither the Tax Collector nor the Tax Assessor will issue any credit or adjustment based solely on a letter or a telephone call or email. If you do not provide the evidence it will only prolong the dispute process and increase your balance due.
 
The date indicated on your evidence is used to determine the amount of your credit – if any. There is a two year deadline for applying for a partial credit ending on Dec 31 of the year after the tax came due. [See CGS Sec. 12-71c(b)]. Using registration out-of-state as an example - if the registration occurred out-of-state more than two years ago you will not legally be entitled to a partial credit. But, you may obtain a full credit of a particular tax year if the date of the registration out of state occurred before October 1 of the tax year identified on your notice. (See CGS Sec. 12-57). If the registration occurred within the last two years, the Tax Assessor will determine whether you can obtain a full or a partial credit of any of the taxes you owe. Please note that the tax year runs from October 1 through September 30 of the following calendar year. For example, if you registered your vehicle out of state in December of the tax year assessed against you, you will receive a credit for 9 months of the year. You will owe for three months (Oct., Nov. and Dec.) plus any interest and fees on that amount.

Question 8

What if I moved to another town/city within Connecticut?

Accepted Answer

If you moved to another town or city within Connecticut you must provide proof of residence such as a lease agreement, telephone records, utility bills as of October 1 of the Tax Year(s) on your notice. Note that the obligation to pay the tax does not disappear. The municipality where you now reside will collect payment of the taxes.

Question 9

What if I went out of business?

Accepted Answer

Shareholders or officers of a terminated business who pocket the sale proceeds of the vehicles without paying taxes may be liable for paying the taxes. Furthermore, shareholders or officers, heirs of a deceased or anyone who received taxable property free of charge, by gift or in exchange for a claimed debt owed while taxes were delinquent may be held liable

Question 10

What if the taxpayer is deceased or the vehicle was provided to another party as a gift?

Accepted Answer

Heirs of a deceased or anyone who got a vehicle free of charge, by gift or in exchange for a claimed debt owed while taxes were delinquent may be held liable and registration may be denied [CGS 14-33].

Question 11

Is there a statute of limitation on collections?

Accepted Answer

The statute of limitation on the collection of Connecticut municipal property taxes is 15 years from the date the tax was first due and payable [CGS 12-164]. Any claim of delay in enforcing collection (a/k/a laches) does not apply until the 16th year.

Question 12

What if I am not the person who owes the debt and I received a notice?

Accepted Answer

Occasionally the wrong person of the same or similar name is sent a delinquent notice. Please inform TaxServ if this is the case. Because both the Connecticut DMV and the tax collectors use dates of birth as an additional identifier, it would be helpful if you also provide your date of birth.

Question 13

What if I am active military?

Accepted Answer

Please provide a copy of Form DD-214 and a letter from your commanding officer. The assessor of your municipality may seek additional information and will determine any exemption or credit.

Question 14

Why are interest and collection fees added?

Accepted Answer

As a result of your delinquency, a 15% collection agency fee has been added to the taxes you owe. [CGS 12-166 and 36a-805(a)(13)]. Interest will continue to accrue on the first day of each month on the unpaid principal balance of your tax debt at the rate of 1.5% per month, until paid in full. [CGS 12-146]. Interest and fees cannot be separated from the tax.

Question 15

Can the amount I owe be negotiated?  What can I do to reduce this amount?

Accepted Answer

No tax collector (nor TaxServ) has the statutory authority to compromise or release the amount of any tax except as specifically provided by law [CGS 12-168]. Please also be aware that if you send a payment and make a notation on or accompanying a payment that purports to be payment in full when it is not, or, directs application of the payment in any manner that contradicts any applicable statute or ordinance, or, is otherwise contrary to law, the municipality, by statute, cannot accept the statement and will process the payment pursuant to statute [CGS 12-144b]. Payments will be processed as of the postmark date on the envelope [CGS 12-146].

Question 16

What if I have already made a payment?

Accepted Answer

If you believe you have already paid the amount shown in your notice, you must provide a receipt from the tax collector showing payment of the tax year. Note that taxes are billed and paid in the year after they are assessed. For example, a tax from the 2018 Tax Year is first billed in July 2019. A receipt dated in 2018 is therefore not proof of payment of a 2018 Tax.

Question 17

What if I filed bankruptcy?

Accepted Answer

If you base a dispute on a bankruptcy filing, you must submit the page of your bankruptcy filing listing the municipality as a creditor and proof that the taxes were discharged. Note that many times taxes are not discharged in bankruptcy. The rule regarding the ability to discharge a motor vehicle tax is that the bankruptcy filing must be more than one year after the tax came due. For instance, a 2017 Tax Year tax became due on July 1, 2018. A bankruptcy filing on or before June 30, 2019 would NOT result in the discharge of a 2017 tax even if the 2017 taxes were listed on the bankruptcy filing.

Question 18

Am I personally liable for the taxes including interest and fees?

Accepted Answer

Yes, you are personally liable for the taxes assessed in your name. [CGS 12-161]. You must take immediate steps to pay your taxes.

Question 19

Does TaxServ own the debt?

Accepted Answer

No, TaxServ only collects the debt on behalf of its municipal clients and does not actually own the debt.

Question 20

Isn’t this a violation of FDCPA to contact me?

Accepted Answer

With regards to collection of delinquent taxes, TaxServ does not own the debts, only collects them for the municipality. Therefore, neither Federal Fair Debt Collection Practices Act nor other states laws apply to the collection of Connecticut municipal taxes [Staub v. Harris, 626 F.2d 275, 278 (3d Cir.1980); Beggs v. Rossi, 994 F.Supp. 114 (D.Conn.1997), affd, 145 F.3d 511 (2d Cir.1998). Laws relating to consumer or commercial debt collection do not apply to taxes.]

Question 21

Is there a statute of limitations on credits?

Accepted Answer

Yes, there is a statute of limitations on credits.  No tax credits can be given more than three years from due date: "Assessors shall, not later than three years following the tax due date relative to the property, issue a certificate of correction removing such tangible personal property from the list of the person who was assessed in error, whether such error resulted from information furnished by such person or otherwise. [CGS 12-57].

Question 22

Do you report to the credit bureaus and will this show up on my credit report?

Accepted Answer

At this time, the tax delinquency is not reported.  However, if the municipality were to acquire a judgment in court against you, the credit bureaus will likely note the judgment against you.

Question 23

Why do I need to pay taxes on a vehicle I haven’t owned for this long?

Accepted Answer

You are personally liable for the taxes assessed in your name during the time you owned the property. [CGS 12-161]. You must take immediate steps to pay your taxes.

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