TAX RELIEF PROGRAM DUE TO COVID-19

TAX RELIEF PROGRAM DUE TO COVID-19

Governor Lamont has issued an Executive Order providing property tax relief for taxpayers and businesses affected by the COVID19 pandemic. Our Board of Selectmen has voted to participate in the tax deferment program with application. The tax deferment program delays the last day to pay real estate, personal property and motor vehicle taxes for eligible taxpayers. If you are eligible, taxes that are due on July 1, 2020 with a last day to pay of August 1, 2020 will be deferred to a last day to pay of October 1, 2020.

To be eligible for tax deferment, you must attest to a 20% reduction in household income resulting from being furloughed without pay, a significant reduction in hours or loss of employment since April 1, 2020. Businesses and Non-Profits must attest to 30% reduction in income.

Landlords have special eligibility requirements: The Executive Order 7S states that for landlords to be eligible for the Deferral Program, a landlord must provide documentation that the property will suffer a significant income decline or that commensurate forbearance was offered to the tenants or lessees.

On April 10, 2020 Executive Oder 7X required all landlords to grant 60-day rent extensions to residential tenants for April (automatically) and May (upon request due to loss of income). Landlords can satisfy the requirements for tax relief under EO 7S for residential properties only simply by complying with EO 7X and confirming they will do so in an e-mail to the tax collector. Landlords of commercial properties may satisfy those requirements with the documentation listed on the application.

Things to be aware of:  Application must be received by the Tax Collector no later than July 1, 2020. Applications will not be accepted after this date per the Governor’s Executive Order. There are no exceptions to this.

This is only an extension of the grace period. If payment is not received on, or before, October 1, 2020 the taxes will be considered delinquent on October 2, 2020 and the interest will revert back to the original due and payable date of July 1, 2020 (6%). Interest and any fees due will apply.

This deferral is only for the July 1, 2020 installment only. It does not extend to the January 1, 2021 installment. You will still be responsible for paying your second installment on time. It does not apply to already delinquent taxes for prior fiscal years.

All real estate, personal property and motor vehicles must be listed in order to receive the deferral. Do not assume the deferral will automatically apply to all of your real estate, personal property or motor vehicles. Items not listed will not be eligible for deferral.

Taxes paid through escrow cannot receive deferral per the executive order.

The application can be requested and viewed by others under the Freedom of Information Act.

The application is a legal affidavit that you are signing. You are attesting that you have had a 20% reduction in income (30% for business/non-profit) because of the COVID19 pandemic, and that you understand all that is listed above.

Email: taxcollector@townofshermanct.org

or

Mail:  Sherman Tax Collector               Attn: COVID9 Tax Deferral              PO Box 39               Sherman, CT 06784

Fillable COVID19 Tax Deferral Application CLICK HERE

Non-fillable COVID19 Tax Deferral Application CLICK HERE

Completed applications with proof of residency must be RECEIVED no later than July 1, 2020. Applications submitted after this date will not be accepted. There are no exceptions to this.