Council backs local law raising single-payment tax threshold from $6,000 to $8,000; city estimates modest lost interest
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Summary
The council held a public hearing and approved a local law to raise the threshold that requires a single lump-sum tax payment from $6,000 to $8,000, reducing the number of residents subject to the single-payment rule; the controller estimated the lost interest revenue at about $40,000 annually.
The council held a public hearing and approved a proposed local law changing how city property taxes are collected. Under current language, taxpayers whose city portion of the tax bill exceeds $6,000 must pay in one lump sum. The proposed change raises that threshold to $8,000, allowing more taxpayers to split city taxes into two payments.
Staff said roughly 1,670 taxpayers currently have city taxes between $6,000 and $8,000 and would benefit from the change. City Controller Ina told the council the estimated annual loss of interest revenue resulting from the higher threshold would be under $40,000, revising earlier summer estimates that were higher.
Council members said they had heard from many residents who found the lump-sum payment requirement burdensome and described the change as a relief for affected taxpayers. Some council members suggested broader policy discussions about allowing installment payments for all taxpayers, but staff noted the fiscal trade-offs and the city's need to manage cash flow.
The council approved the local law as part of a block vote. The ordinance changes the charter provisions that govern reassessment, levy and collection of city taxes; controller staff will capture the revenue effect in the city's budgeting process.