At the beginning of the tax year July 30, I was billed $2038 for property tax. Because I was having money difficulties this year, I was not able to pay my taxes on time, but by the time July 30, rolled around, I had paid $2034 of the property taxes. On August 2nd, I received a certified letter telling me I was going to lose my house to a tax sale if I didn't pay my property taxes by September 9th. When I called, they told me I owed an additional $1409 in interest. That's a 68% per year rate.
The letters sent in the mail say that the interest rate is 1% per month, but I was being charged a lot more than that.in the three times I have called them, they have justified this with a lot of mumbo-jumbo talk and nobody in Rhode Island or Providence is interested in my plight, so I just paid the $1409 so I don't lose my house.
The state of Rhode Island has a cap on interest, and it's in RI law 44-5-5, limiting penalites and interest on deliquencies to 18% maximum.
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