Whereas, the current rate of interest charged on delinquent property taxes is so low that it does not serve as a deterrent to paying property taxes late; and

Whereas, the failure to pay property taxes on time causes municipalities hardship through the loss of expected revenue; and

Whereas, the tax year for many municipalities begins in April or May; action after that date would not be in time for the upcoming tax year; and

Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 36 MRSA §505, sub-§4, as amended by PL 1983, c. 480, Pt. A, §40, is repealed and the following enacted in its place:

4.__When interest collected; rate.__The date or dates from and after which interest accrues, which also is the date or dates on which taxes become delinquent.__The rate of interest must be specified in the vote and apply to delinquent taxes committed during the taxable year until those taxes are paid in full.__The rate of interest may not exceed the greater of:

A.__The interest rate charged the previous property tax year by that municipality on delinquent taxes; and

B.__The highest conventional rate of interest charged for commercial unsecured loans by banking institutions in the State on the first business day of the calendar year the vote is taken.__The highest conventional rate of interest charged for commercial unsecured loans by banking institutions in the State on the first business day of each calendar year must be determined in the best judgment of the Treasurer of State, who shall send a written notice of that rate of interest on or before January 20th of each year to the chief municipal officer of each municipality.

The interest must be added to and become part of the taxes.