HF 5367 Summary

• Modifies the interest rate calculation for homestead property tax confessions of judgment by changing from "two percent above the prime rate" to "the greater of five percent or two percent above the prime rate."

• Interest rate is set annually by the commissioner of revenue based on the average prime rate charged by commercial banks during the six-month period ending September 30, rounded to the nearest full percent.

• The interest rate established at the time judgment is confessed remains fixed for the duration of the judgment.

• Default is defined as cancellation of the confession of judgment due to nonpayment of current year taxes or failure to make installment payments within 60 days of the due date.

• The effective date is the day following final enactment.