We want to update you on the new interest rate changes per HB1673, which takes effect April 1st, 2019. As of right now, this is what we know:

• HB1673 changes the interest rate on delinquent property taxes from 12% to 8%.
• Current Use, Excavation, and Timber tax interest rate (before they are liened) will not change. They will remain at 18%.
• Utility bills follow the property tax laws so starting with the 2019 tax year (April 1st) the interest rate for delinquent property and utility bills will be reduced from 12% to 8%.
• As of the date of this blog post, when you lien the 2019 warrants (sometime in 2020), you will be liening all unpaid warrants as you currently do. However, the new interest rate for the resulting lien will be at 14%. As such, the Current Use, Excavation, and Timber, once liened, will go from an 18% interest rate to the new lien rate of 14% and can be included with the property tax liens. You read that right, interest rates will go from 18% to 14% for Current Use, Excavation, and Timber when they are liened.

How does this affect you right now? You don’t need to do anything until April 1st, 2019 when the new tax year begins. After April 1st, and before you import any new property or utility invoices, you can change the interest rate in Avitar Collect by going to Utilities | Town Settings | Rates, Fees, Deposits and change the Interest Rate for Property Tax from 12 to 8. This is the only change you need to make at this point. The lien rate should not be changed until you are ready to lien your 2019 unpaid taxes (sometime in 2020).

Here is a link to the wording on HB1673.