An Act to reduce delinquent municipal tax interest rates

HD 2056 changes how municipalities charge interest on overdue property taxes. It replaces the fixed 14% annual interest rate with a new rate based on the federal short-term interest rate plus an additional 3% per year. This new rate adjusts quarterly on March 31, June 30, September 30, and December 31 to reflect changes in the federal rate. The bill directly affects property owners who fall behind on municipal tax payments, potentially lowering their interest costs compared to the previous fixed rate.