AGENDA ITEM SUMMARY

Consider, on second reading, an ordinance amending the Code of Griffin, GA at Chapter 25, BUSINESSES (Occupation Tax), and Chapter 82, TAXATION (ad valorem taxes and excise tax on lodgings), to conform the Code provisions for collection of delinquent taxes to Ga. Laws 2016, Act 488, effective July 1, 2016. City Attorney Drew Whalen will address.

Until July 1, 2016, the law allowed the City to collect 1.0% interest per month on delinquent taxes until paid in full. Effective July 1, a new law ties the rate of interest to the Bank Prime Loan rate, as published in Federal Reserve Bank's Publication H.15 Selected Interest Rates. For 2016, the annual rate is now 6.50% or 0.54% per month.

Approval.

The monthly rate is now almost cut in half, which suggests greater incentive for taxpayers not to pay their taxes on or before the due date. The financial impact of this policy remains to be seen.