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Bill would delay steep interest spike on deferred property taxes after death of seniors and active‑duty service members
Summary
Representative Michelle Ciccolo testified in support of H 03/1951, a bill that would prevent a property‑tax deferral interest rate from doubling on death by allowing a one‑year deferral so heirs can settle estates without facing an immediate 16% interest charge.
Representative Michelle Ciccolo told the Joint Committee on Revenue she filed H 03/1951 to address an interest‑rate problem that can discourage seniors and veterans from using the property tax deferral program.
“What the bill does is very, very simple,” Representative Ciccolo said. She explained that communities may set an interest rate on deferred property taxes capped at 8 percent while the owner is alive, but when the taxpayer dies the statutory provision that recaptures delinquent taxes causes the rate to “immediately shoot up to 16%,” creating a large payment for heirs who are settling an estate.
The bill asks for a one‑year deferral on that stepped‑up rate so families have time to settle the estate. Ciccolo said the measure does not release or reduce the debt — it only postpones the 16 percent charge for a year so heirs can arrange payment. She noted the provision also applies to veterans who use the deferral program.
Ciccolo told the committee the House previously formed a commission to study deferral programs more broadly and she encouraged renewing that review to consider this issue as part of a comprehensive look at deferral policies.
No committee vote was taken at the hearing. Ciccolo said she would submit written testimony documenting the bill’s intent and asked the committee to consider the one‑year deferral provision as a narrow fix to an interest‑rate outcome she described as punitive for heirs.
