Cook County cuts interest penalties on late property tax payments
CHICAGO (CBS) -- Property tax payments for Cook County homeowners are due March 1 – but the county is cutting a break to those who are late paying their bills this year and beyond.
New tax reforms are taking effect that will lower the interest rates on overdue payments. The interest rate penalty will drop from 18 percent to 9 percent a year.
The monthly rate of interest charged on late payments will also drop – from 1.5 percent to 0.75 percent.
"These interest rate cuts will help homeowners at a time when banks, credit card companies, mortgage lenders and others continue to charge relatively high interest rates," Cook County Treasurer Maria Pappas said in a news release. "These lower interest rates will help those who are unable to pay their property taxes in full by the due date and who make partial payments on late taxes to spread out the burden."
Pappas' office said the cuts will save homeowners $90 per year on every $1,000 owed in taxes. Researchers from her office have estimated that the rate reduction will save Cook County property owners between $25 million and $35 million a year.
The lower interest penalties were part of a series of reforms signed into law by Gov. JB Pritzker last year. Pappas' office and the Chicago Community Trust worked together to promote the legislative changes.