Tax Deferment Program

Executive Order 7S – Suspension and Modification of Tax Deadlines and Collection Efforts

At its April 15, 2020 meeting, the East Lyme Board of Selectmen adopted the state’s tax deferment program (grace program) for those citizens who have been severely impacted by COVID-19.  The program includes the 2020-2021 property tax payments, all water and sewer payments and any other municipal bills (and beach community taxes) issued between March 10, 2020 and July 1, 2020.

Taxpayers are eligible if they have been negatively affected (fiscally) by the COVID-19 crisis.  THIS IS NOT AN AUTOMATIC GRACE PERIOD.  TAXPAYERS MUST FILL OUT AN APPLICATION AND SUBMIT TO THE TAX COLLECTOR BEFORE JULY 1st.

Taxes that are paid by escrow accounts are not eligible for this program.

The Deferment Program

Think of this program as an extended grace period program. What is “deferred” is not a tax but rather the last day to pay without interest. The deadline is deferred, not the tax. Eligible taxpayers are entitled to defer their payment deadline until 90 days from the tax due date, instead of the usual 30 days.

This will have different applications depending on when taxes or other charges (municipal sewer, utility, etc.) are ‘due’ in a given municipality.

For the July 1, 2020 property tax payment, instead of the last day to pay being August 3, 2020 (August 1 falls on a Saturday), the last day to pay will instead be October 1, 2020 (90 days from July 1) because the last day to pay is being deferred, or the grace period is being extended.  If the taxes are not paid by the 90th day, interest will be applied back to the original tax due day…not beginning on day 90.  It is very important that those seeking this grace period understand the consequences if the tax is not paid on time.

The plan covers any real estate, motor vehicle or personal property tax, and any municipal water, sewer or electric rate, charge or assessment.

“Eligible” taxpayers, businesses, nonprofits, and residents (that covers everybody) are those that “attest to or document significant economic impact by COVID-19, and / or those that document they are providing relief to those significantly affected by COVID- 19.”

This program does not address taxes that are already past due. It is not an amnesty or waiver of interest or other charges on taxes that are already delinquent.

Click here to download the application form (Fillable PDF) and return by email to:

TaxDeferment@eltownhall.com

OR by USPS mail to:

Tax Deferment Program
c/o Tax Collector
108 Pennsylvania Ave
Niantic, CT 06357-1510

More info from Connecticut Office of Policy Management.