Who sets the maximum rate of interest to be bid at a tax sale?

• A. City charter
• B. Statute
• C. Municipal ordinance
• D. Judicial decision

Answer: (B)

State law sets the maximum rate. The terms of tax sales, including how bids are handled and what interest rate can be charged, are established by statutes enacted by the state legislature. This creates a uniform rule across all municipalities. Local rules in city charters or ordinances can fill in procedures as long as they don’t conflict with the statute, and court decisions may interpret the statute but do not by themselves set the cap.