2/20/14 - A bill sponsored by a local lawmaker is aimed at helping municipalities across the state with interest rates charged on delinquent property taxes. Local units of government must turn over delinquent property tax rolls to the county, which then reimburses the municipality and other taxing jurisdictions such as schools through its revolving delinquent tax fund. Current law requires the county to then charge the local unit of government 1% interest on the total amount owed per month, which can add up at the end of the year. House Bill 5074, sponsored by Republican State Representative Cindy Denby of Handy Township, would change the law to allow counties some flexibility and the ability to charge anywhere from zero up to 1%. She says it really boils down to one taxing unit charging another taxiing unit an interest rate thatâs not in line with current times. Livingston County Administrator Belinda Peters says she supports the legislation, which provides options and flexibility to the Board of Commissioners regarding the interest rate on delinquent property taxes. However, she says it wonât have any huge impact because since 2008, the county has borrowed funds for the delinquent payments and interest rates have been very low to all taxing units. The legislation has already unanimously cleared committees and the House, and is currently pending a vote on the Senate floor but should be taken up within the next few weeks. (JM)
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