Mount Vernon explores tax lien sales to streamline property tax collection

During the Mount Vernon Board of Education's regular meeting on March 18, 2025, significant discussions centered around the district's financial challenges and the management of tax collections. A key topic was the delay in tax payments and the implications for the school district's funding.

The meeting revealed that the school district had faced delays in receiving tax revenues, particularly after it began collecting its own taxes. This delay, lasting two to three years, raised questions about the effectiveness of the current tax collection process. Board members discussed the potential for foreclosure on properties with outstanding taxes, but concerns were raised about the lengthy and complex nature of foreclosure proceedings in Mount Vernon, which differ from state processes.

Instead, the board considered the option of a tax lien sale as a more efficient alternative. This approach would allow the city to recover funds owed to the school district more quickly, providing necessary cash flow for operations. The tax lien sale process would enable the city to auction off tax liens, allowing the purchaser a period of time to collect the owed taxes from property owners. This method, while offering less control over who purchases the liens, is seen as a faster solution to address the district's financial needs.

Additionally, discussions touched on the issue of abandoned properties in the city. Board members sought clarification on whether these properties, which may have outstanding taxes, could be included in foreclosure actions. However, it was noted that the city has limited control over abandoned properties until they are formally foreclosed upon.

The meeting underscored the ongoing fiscal distress faced by the city and the school district, highlighting the urgent need for effective tax collection strategies to ensure stable funding for educational services. As the board navigates these financial challenges, the outcomes of these discussions will have direct implications for the community and its schools.