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County to lower owner‑occupied tax‑sale redemption interest rate to comply with state law
Summary
Commissioners were told Maryland law caps interest on owner‑occupied tax‑sale redemption at 10%; the county’s rate previously was 18% and staff will update local policy prior to the May tax sale. Non‑owner‑occupied properties are to remain at the prior 18% rate, per staff explanation.
Mr. Brennan told the board that Maryland legislators changed the law and that the allowable interest rate on owner‑occupied properties redeemed after tax sale is now capped at 10 percent. He said the county’s current rate is 18 percent and staff will need to revise local procedures before the May tax sale to comply with the state change.
A tax‑office representative explained the operational impact: staff will manage two sets of rates (10% for owner‑occupied properties and 18% for non‑owner‑occupied properties) which will add administrative complexity to tax‑sale processing. Commissioners discussed the policy intent to protect homeowners and noted concerns that the lower rate could change buyer behavior in tax sales.
Next steps: staff will update tax‑sale procedures and ensure the May sale reflects the new statutory cap for owner‑occupied redemptions.
