Tax Deferment FAQ

Pursuant to Governor Ned Lamont’s Executive Order 7S; the Town of Salem, Board of Selectmen voted on April 22, 2020 to enact the Tax Deferment by Application program to provide relief to taxpayers who have been significantly impacted by COVID-19

(Executive Order 7S) Deferment Program. During the period of March 10, 2020, the date that I declared the public health and civil preparedness emergency, through and including July 1, 2020, municipalities participating in the Deferment Program shall offer to eligible taxpayers businesses, nonprofits, and residents a deferment by ninety (90) days of any taxes on real property, personal property or motor vehicles, or municipal water, sewer and electric rates, charges or assessments for such tax, rate, charge, or assessment from the time that it became due and payable. Eligible taxpayers, businesses, nonprofits, and residents 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 the COVID-19 pandemic. The Secretary of the Office of Policy and Management shall issue guidance as to which taxpayers, businesses, nonprofits, and residents shall be considered eligible for the Deferment Program.

Escrow Payments. Financial institutions and mortgage servicers that hold property tax payments in escrow on behalf of a borrower shall continue to remit property taxes to the municipality, so long as the borrower remains current on their mortgage or is in forbearance or deferment program, irrespective of the borrower's eligibility for or participation in the Deferment Program or the Low Interest Rate Program.

 

What this means for the taxpayers

This action will allow eligible taxpayers who attest to or document that they have been significantly impacted by COVID-19 to submit an application for TAX DUE deferment of their 2019 grand list tax bills. Applications must be received in the tax office by July 1, 2020. Approved applicants will have their 2019GL tax due date deferred from July 1, 2020 to October 1, 2020. 

The Town Hall is closed to the public, how can I apply for the deferment program?

We have made a fillable application available online at www.salemct.gov. You may submit the completed application by email or you may mail the application to Salem Tax Collector, 270 Hartford Rd. Salem, CT. 06420. The Tax Office will honor postmark dates of July 1, 2020 or before on all envelopes received after the July 1, 2020.

What if I miss the July 1, 2020 deadline for application submission because I was unaware of the program?

The Executive Order clearly states the deadline is July 1, 2020. We cannot accept any applications after the deadline. We have posted the program information online at www.salemct.gov along with a fillable application. We have also sent out an email through the Town’s ESubscriber notification system.

Can I take advantage of the deferment program if my real estate taxes are escrowed?

No. Executive Order 7s does not allow real estate accounts that are escrowed to be eligible for deferment.

I submitted an application for deferment but my tax bill has the July 1, 2020 due date on it.

The bills were created before we could receive and process all applications for deferment. If you submitted an application and it was approved you will receive a corrected bill in the mail with the October 1, 2020 due date. You may call the tax office to confirm that we received your application and if it was approved.       

My application was approved and I didn’t pay my 2019GL tax bill before the deferment date of October 1, 2020?

Any outstanding tax bills/balances will revert back to the original due date of July 1, 2020 with interest of 1.5% per month.