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Training for: Legal Notes
The State Treasurer has established 7% as the maximum interest rate that municipalities may set for delinquent property taxes committed during calendar year 2016. However, as anyone familiar with delinquent taxes knows, interest does not accrue on unpaid taxes unless a municipality, by vote of its legislative body, establishes the rate of interest and the date or dates after which interest will accrue. This must be done at the meeting at which the body votes to raise a tax or at any subsequent meeting prior to commitment of the tax (see 36 M.R.S.A. § 505(4)). This rate then applies to all delinquent taxes committed that year until they are paid in full. For details on how to calculate interest on delinquent taxes, see MMA’s Municipal Liens Manual, available free to members at www.memun.org. (By R.P.F.)
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