Bill: HB 108, 85(1) - 2017
Committee
House Ways and Means
Vote Recommendation
| Vote Recommendation |
Economic Freedom |
Property Rights |
Personal Responsibility |
Limited Government |
Individual Liberty |
| Yes |
Neutral |
Positive |
Neutral |
Positive |
Neutral |
Author(s)
Jim Murphy
Bill Caption
Relating to the rate at which interest accrues in connection with the deferral or abatement of the collection of ad valorem taxes on certain residence homesteads.
Fiscal Notes
No fiscal implication to the State is anticipated.
Bill Analysis
This legislation would reduce the interest rate for certain residence homesteads undergoing a deferral or abatement on the collection of property taxes. Under current law, the statutorily set rate of interest accrual on deferred or abated tax liabilities for properties affected by this bill is eight percent. This bill would change the rate to the five-year Constant
Maturity Treasury Rate reported by the Federal Reserve as of
January 1 of the year in which the deferral or abatement was
obtained.
Vote Recommendation Notes
Statute currently prescribes a specific interest rate which is relatively high, making tax deferral or abatement more costly than necessary. This bill supports limited government and property rights by indexing the interest rate to a metric that is more reflective of actual market rates which are expected to be lower than the current statutorily proscribed eight percent. People who are already arguably overtaxed on their property in the first place should not also be overcharged interest on deferred or abated taxes.
