Late property tax penalties would be capped at 5 percent, and your payment would go to the tax first
What it does
The bill would change how a tax collector applies your money when you pay a delinquent property tax bill. The collector would have to apply the payment to the tax you owe first, before any penalty or interest, unless you provide written instructions for a different application. The bill would also cap the total penalties and interest you can owe at an amount equal to 5 percent of the delinquent tax. The payment rule would apply only to payments received on or after the effective date of September 1, 2027.
What it means for your community
If you fell behind on property taxes, the collector could no longer take your payment first for penalties and interest. That money would go toward what you actually owe, and the 5 percent cap limits how much extra can pile up on a delinquent bill. The rule applies to the collector who handles your taxing unit's bill.
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