At its Jan. 2 meeting the Caribou City Council voted to allow early payment of 2025 property taxes at a 0% interest rate and approved the city’s 2025 “tax club,” a program permitting property owners to make 12 equal monthly estimated payments and not incur interest for October, November and December after the final commitment.

The manager read statutory background: Maine law permits municipalities to accept prepayments and authorize interest on those prepayments at a rate not exceeding 8% per year, but a municipality is not required to pay interest. The council authorized acceptance of prepayments at 0% for the 2025 commitment and separately authorized the tax-club program.

Why it matters: The tax-club program and prepayment authorization provide a budgeting option for homeowners and businesses who prefer to spread their property-tax liability across the year. Councilors debated fairness: one councilor argued it is inequitable to offer 0% interest to those who prepay while charging higher interest on delinquent accounts.

Details
- Prepayment authority: Council authorized the tax collector to accept early payments on 2025 property taxes and set the interest rate on any prepayment at 0% for the 2025 commitment (authorization under Maine statute discussed in packet).
- Tax club: Council authorized the 2025 tax club allowing 12 equal monthly payments of estimated 2025 tax liability; the program stipulates no interest applied for October, November and December on club accounts after final commitment adjustments (December payment will reflect any difference between estimated and final commitment amounts).

Outcome: Both motions carried on voice votes. Councilors asked the manager and tax collector to publish details and deadlines for taxpayers. A councilor said he opposed the 0% rate on fairness grounds but did not block the measure.