S.F. No. 5440 Summary

• Changes the interest rate calculation for homestead property tax confessions of judgment from "two percent above the prime rate" to "the greater of five percent or two percent above the prime rate," with a minimum floor of 5 percent.

• Requires the interest rate to be set annually by the Commissioner of Revenue by October 15, with certification to county auditors by November 1, based on the average prime rate during the six-month period ending September 30.

• Locks the interest rate at the time judgment is confessed for the duration of the judgment, preventing rate changes during repayment.

• Allows qualified property owners to enter a second confession of judgment at the newly calculated interest rate under the revised formula.

• Becomes effective the day following final enactment.