Effective the tax year beginning April 1, 2019, the amount of interest taxpayers must pay on real estate tax not paid within thirty days after bills are made drops to 8% from the current rate of 12%. The interest rate on properties subject to a tax lien drop to 14% from 18%. This is good news for taxpayers, and long overdue. Despite the reductions, these rates still exceed the interest taxpayers receive when municipalities over-assess taxpayers due to valuation mistakes. That rate is 6%. Getting 6% on your money is not bad in a low interest rate environment, but the legislature should act swiftly to make sure it continues well above money market rates. If money market rates exceed 6%, then beleaguered taxpayers will suffer the double indignity of paying more than their fair share of taxes and losing money on the interest rate spread.
The above information is for informational purposes only and does not constitute legal advice.