Interest on Delinquent Property Taxes

Revenue Class: Local Taxes

Fund: General

Account No.: 31300

Description: Revenue received from interest on delinquent property tax payments.

Authorization: T.C.A. § 67-1-701 et seq.; T.C.A. § 67-1-801 et seq.; T.C.A. § 67-5-2010.

Requirements or Restrictions: N/A

Current Rate: Interest of 1.5 percent imposed on March 1 and on the first day of each additional month, except as otherwise provided in reference to municipal taxes. Public Chapter 886 allows municipal tax collectors or taxing entities to accept partial payments. A plan must be filed with the Comptroller of the Treasury before it can begin to accept partial payments. The act requires that partial payments be applied to delinquent taxes, statutory fees and court costs on a pro-rata basis detailed in the act.

Frequency of Payment: N/A

Late Pay Penalty: N/A

Exemptions: For cities in any county having a population of not less than 24,600 nor more than 24,700 according to the federal census, upon approval by two-thirds of the governing body, the rate of interest may be reduced to an amount not less than 12 percent per year in the aggregate. In addition, members serving in the armed services in an active hostility outside the U.S. have additional time before interest accrues. T.C.A. § 67-5-2011.

Collection: Interest is collected, along with delinquent property taxes. T.C.A. § 67-5-2001 et seq.

Use Restrictions: None.