When property taxes become delinquent interest and penalty charges begin accruing on the base tax balance. Payments made on delinquent taxes are first applied to charges, then to the base tax amount. TCA 67-5-2405
requires the Trustee to file suit to collect delinquent real estate taxes. Lawsuits are filed with Chancery or Circuit Court to collect delinquent property taxes, penalties, interest and cost of the suit.
For property taxes, delinquency dates vary by tax authority as noted below.
March 1 September 1
Interest & Penalty Rates
Property taxes become delinquent on the dates listed above. Upon the delinquency date, interest and peanlty ( I & P ) begins to accrue on any unpaid tax amount. The amount of interest and penalty varies as listed below.
Shelby County, Arlington, Collierville, Lakeland, Millington and Memphis
1% interest + .5% penalty each month or 18% per year
March 1 1.5% interest + .5% penalty for the 1st month
April 1 1.5% interest every month thereafter
March 1 0% interest + 5% penalty
April 1 1% interest + 2% penalty
May 1 1% interest + 1% penalty
June 1 1% interest + 1% penalty
July 1 1% interest + 1% penalty
August 1 1% interest every month thereafter
Total amount due is calculated with interest and penalty through the last day of the month. However, other legal fees may be added during the month. For this reason, all tax year payoffs will be verified by the Trustee on the day of payment receipt. Payments will be applied and any remaining balance must be paid by the taxpayer before the tax lien can be removed.
For additional information, please contact
Shelby County Trustee Customer Service at (901) 222-0200.