The Planning and Development Committee sent a bill to the House floor Tuesday that would change the rate of interest on delinquent property taxes that are assigned to third-party companies. 

The bill, House Bill 5144, would reduce the rate of interest that can be accrued on unpaid property taxes – when those outstanding taxes are bought by or “assigned” to a third party – from 18% to 12%.

The change would mean that residents with unpaid property taxes would be charged 12% interest, as opposed to the current 18%, if their lien is sold to a third-party company.

Municipalities would still be able to collect 18% interest on delinquent taxes that are not assigned. 

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