Ellsworth sets overdue tax interest at 6% and writes off $45,129 in uncollectible personal-property bills

The Ellsworth City Council voted to keep the interest rate on overdue property taxes at 6% and approved a request from the tax collector to write off $45,129.15 in old, uncollectible personal-property accounts.

Tax Collector Sue MacLean told the council the treasurer of state sets a ceiling based on a published prime rate but the city historically keeps its local rate below that figure. MacLean recommended retaining 6% to limit burden on taxpayers; council members noted the rate is typically set two percentage points below the state-determined maximum and discussed the city’s administrative costs for collection and lien processing.

Finance staff told the council the budget includes a line for interest on unpaid taxes and that the 2025 budgeted amount was $85,000. Members said they preferred keeping the municipal penalty low to help taxpayers who are struggling while ensuring the city can recover some costs when tax payments are delayed.

MacLean also explained the list of personal-property accounts recommended for write-off: many were decades old, owners could not be located, businesses appear to have ceased operating or changed ownership, and collection efforts had been exhausted. She said the city typically recovers many overdue real-estate accounts through lien and foreclosure processes but that personal-property debts have no lien remedy and are often costly to pursue in small-claims court.

The council approved both motions: adopt a 6% annual interest rate on overdue taxes and authorize the tax collector to write off the attached list of personal-property accounts totaling $45,129.15.

Details: The interest-rate motion passed after council discussion of collection costs and the policy rationale; the write-off included several long-dormant accounts such as prior businesses that staff could not locate and for which collection through small-claims court was not cost-effective.