What is the interest rate applied on delinquent amounts over $1500?

The interest rate applied to delinquent amounts over $1500 is established by New Jersey law, specifically under the provisions that govern the assessment and collection of municipal charges. In this case, the correct interest rate of 18% is prescribed for amounts exceeding $1500.

This rate is a statutory requirement aimed at incentivizing timely payments and discouraging late payments on taxes owed. The higher interest rate serves as a financial penalty for those who delay their payment obligations, reflecting a common practice among many jurisdictions to apply higher rates to larger delinquent amounts as a deterrent.

Understanding this rate is crucial for both tax collectors and taxpayers, as it highlights the economic implications of overdue payments and the importance of adhering to payment deadlines. Properly applying this interest rate also ensures compliance with local regulations, thereby facilitating effective tax collection efforts.