Penalties & Interest

PENALTY & INTEREST PERCENTAGES TABLEDelinquent tax accumulates penalty and interest

a. Penalty:

1) Equals six percent (6%) upon deliquency for the first month (typically February)
2) Increases an additional one percent each month
3) Peaks at twelve percent (12%) (typically on July 1), where it remains permanently.

b. Interest: One percent (1%) for the first month tax is delinquent, and increases an additional one percent (1%) each month until the tax is paid.

c. Additional Penalty: (optional if a taxing unit uses a private collection law firm).

1) Usually imposed on July 1, provided that the taxpayer has received notice.
2) Up to twenty percent (20%) of the total unpaid amount.
3) Covers costs of hiring a collections attorney.