February 11, 2014

Hot Report: Delinquent Property Taxes

OLR Report 2014-R-0046 answers two questions: What interest rate do neighboring states impose on delinquent property taxes? Have any of these states offered property tax amnesty programs?

Table 1 lists the interest rate charged on delinquent property taxes in New England states and New York. As the table shows, Connecticut, Massachusetts, and New Hampshire require municipalities to charge a specific interest rate on delinquent property taxes, ranging from 12% per year in New Hampshire to 18% per year in Connecticut. The remaining states authorize municipalities to set the interest rate themselves.

Table 1: Interest Rate on Delinquent Property Taxes in Selected States

State and Citation
Interest Rate on Delinquent Property Taxes
CGS § 12-146
18% per year (1.5% per month)
Me. Rev. Stat. tit. 36, § 505
Varies locally; subject to maximum rate annually established by the state treasurer, according to statutory formula (7% for 2014)
Mass. Gen. Laws Ann. ch. 59, § 57
14% per year
New Hampshire
N.H. Rev. Stat. Ann. § 76:13
12% per year
New York
N.Y. Real Prop. Tax Law § 924-a
Varies locally; minimum of 12% (1% per month)
Rhode Island
R.I. Gen. Laws Ann. § 44-5-5
Varies locally
Vt. Stat. Ann. tit. 32, § 5136
Varies locally; maximum of 1% per month for the first three months and 1.5% per month thereafter (towns may also impose an additional penalty of up to 8%)
Source: CCH, State Tax Smart Charts, and state statutes

For more information, read the full report.