SUMMARY

Current law establishes the maximum rate of interest that may be charged by municipalities on delinquent taxes as 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.

This bill allows a municipality to impose an interest rate up to the rate imposed during the previous property tax year in that municipality or a rate equal to 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, whichever is greater.