LOCAL GOVERNMENT AND TAXATION 57 



dition that the tax be paid before a given date. To facilitate compari- 

 son these discount rates were calculated on an annual basis ; for in- 

 stance, a discount of three percent for payment by x*\ug-ust 1 (four 

 months before December 1) is the equivalent of nine percent per 

 year. On this basis discount rates were found to range from an an- 

 nual rate of 4.2 percent to 24 percent. On the other hand, the annual 

 interest rate on temporary loans in anticipation of taxes ranged from 

 0.45 percent to 6.0 percent. In only five instances was the annual dis- 

 count rate as low as or lower than the interest rate paid on loans. In 

 all of the remaining 55 towns the discount rate exceeded the interest 

 rate. When discount rates exceed the interest rate, they currentlv 

 reduce the number of dollars derived from taxes, and eventually, 

 though not significantly, increase the tax levy. 



Real estate is held for all taxes assessed against the owner, in- 

 cluding his poll tax and that of his wife. The lien on real estate is 

 taken on July 1 of the year of lev}^ and continues until October 1 of 

 the following year. Furthermore, the statutes vest the tax collector 

 with the powers of a constable ". . . in the service of civil process, 

 which shall continue until all the taxes in his list are collected. ""^^ 

 Accordingly, collectors are required to sell real estate, on which the 

 taxes have become delinquent, at any time between December 1 of 

 the year of levy and expiration of the lien on the following October 1, 

 provided, however, that four weeks expire between the dates of ad- 

 vertisement and sale. December 2 is the first day of delinquency, 

 and hence it is the first da}' on which a tax sale can be posted (adver- 

 tised). Therefore the earliest date on which real estate can be sold 

 legally is December 31. since 28 days must expire after posting. 



The penalty for late payment of taxes is 10 percent interest com- 

 puted on a yearly basis from December 1 to the day of payment. If 

 payment is made after posting, the taxpayer must also pay the costs 

 of advertising. After sale, any delinquent taxpayer mav redeem his 

 property by paying the buyer the amount for which the lien was sold 

 plus costs of sellinfr and interest at the rate of 12 percent per year on 

 the entire amount from the day of sale. Two years from the day of 

 sale the collector is required to take a collector's tax deed for the town 

 of all real estate not then redeemed. '^^ 



The tax collector is required to forward to the county register 

 of deeds a copy of the advertisement and of the sale, and a notice of 

 each redemption. The register records all these facts as he receives 

 them. A recording fee of 25 cents is charged for each parcel adver- 

 tised, for each parcel sold, and for each redemption. This is paid by 

 the collector and added to the costs to be collected from the delin- 

 quent. 



The tax collector's problems in connection witli delinquency are 

 detailed and technical, but important. Tax collectors' deeds carry 

 good title only when the delinquency procedure is administered in 

 exact obeyance of the law. The records of tax sales at the registers 

 of deeds reveal many irregularities in reporting by tax collectors. For 



^Revised Laws. 1941, Chapter 80, Section 3. 

 ■*" Revised Laws, 1941, Chapter 80, Section 33. 



