4,000 get reminders they owe taxes

Four thousand property owners got a reminder in the mail over the past couple of weeks that they hadn’t paid their taxes.

The number of delinquent taxpayers is not considered extraordinary, but the fact that they got a letter outlining the taxes they owe and for what years is.

“It’s like a reminder,” said City Tax Collector Kyla Jones.

She explained the letters went out in two waves, the first on Nov. 10, followed by one on Nov. 16. The timing was planned so the collector’s office would not be overwhelmed with calls and could keep up with the posting of payments.

The response has been positive, with a steady flow of payments being made either in person, mailed to the city, mailed to the company that maintains the city lock box or online. Most of the delinquent notices are for bills sent in June of this year, but, said Jones, a few go back to 2013. The two-sentence letters simply note that city records show payments aren’t being kept current and list payments due by year. There is no threat or mention of the property being placed for a tax sale, which Jones would like to plan for next May.

She said another letter is planned for January. It would warn property owners the city could proceed with a tax sale.

Many of those receiving the recent letter aren’t aware they have fallen behind. Jones pointed out many property owners are accustomed to paying taxes as part of their mortgage. She said there have been cases where these people have added to their property and fail to realize those added taxes aren’t included in their mortgage payments.

Jones also noted that a number of the delinquents are faithful taxpayers.

“Some have never been late before and are subject to a waiver [of interest],” she said.

Property owners who have been current on payments for five consecutive years are eligible for a one-time waiver of interest charges. Forms are available in the tax collector’s office. However, by city law, the waiver can go no further back than two years.

While taxpayers may have missed the first quarterly payment due in July, Jones said her office really couldn’t send out reminders until after the second quarterly payment that was due in October. The reason, she explained, is because taxpayers have until September 15 to pay their taxes in full.

The effort to alert taxpayers before they reach the point of a tax sale was initiated after more than 2,500 property owners had their properties listed in a tax sale in 2014 for unpaid utility bills and taxes. Members of the council thought the city could be more proactive in collections. Carrying the process out to a tax sale adds $200 to $350 in legal and title search costs to the taxpayer’s expense.

In the case of utilities, a plan was adopted at the urging of Ward 5 Councilman Ed Ladouceur to shut off water in the case of unpaid sewer and water bills. Notices were sent out this summer to more than 950 property owners owing $1,000 or more in utility payments for a gross total of $3.5 million. Jones said that effort resulted in a flurry of payments and the establishment of 500 payment plans. The plans require a down payment of 25 percent of the balance, with the outstanding amount paid over a year in monthly installments.

Jones did not have a total on the amount of unpaid taxes represented by the recent mailing of 4,000 letters. She said that the city budgets on collecting 98 percent of the tax revenues it bills. Jones urged those making tax payments to write their bill number and/or parcel identification on their check memo.

The main goal of the campaign, she said, is to let property owners know they aren’t up to date on taxes before reaching that point of a tax sale.