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Clay County Commission denies Hallmark request to waive late fees after e-check routing error
Summary
The Clay County Commission voted 5–1 to deny Hallmark Marketing Company’s request to waive penalties, interest and fees after one personal-property e-check failed due to an incorrect routing number; Hallmark asked the commission for a refund citing a holiday office closure and a strong payment history.
The Clay County Commission on Thursday denied a request from Hallmark Marketing Company to waive interest, penalties and a canceled-check fee after one of the company’s e-checks for personal-property taxes was rejected because of an incorrect routing number.
Travis Sorensen, tax compliance manager for Hallmark Marketing Company, told the commission the company submitted most payments on Dec. 13 and that one payment was rejected when a routing number was keyed with an extra zero. “We did request in writing, to have the penalty and interest waived. But, we're here tonight to hopefully just have the penalty waived, and refunded,” Sorensen said.
The commission discussed whether county error or delayed mail delivery justified relief. Several commissioners said state law limits the county’s authority to waive penalties unless the county made an error.
“State law is very clear when it comes to this kind of stuff… we do not have the authority to reverse this kind of stuff unless it's our fault,” Commissioner Wagner said. Commissioner Johnson, who voted against denying the request, said he disagreed with the statute's effect and called the penalty “unfortunate” given Hallmark’s prompt corrective action and holiday office closure. “An honest error that you come back and say, hey … we're sorry … I don't think you should have to pay this,” Johnson said.
Barbara, the county collector, told commissioners that the mailed notice in the file was sent Dec. 20 and that staff had no record that the county failed to send notice. Sorensen said Hallmark’s corporate office was closed from Dec. 25 through Jan. 6 and that staff could not verify receipt of the notice before the holiday.
After discussion, the motion to deny the waiver request carried 5–1. The commission’s vote rejected Hallmark’s request for a refund of penalties and interest; Commissioner Johnson was the lone opposing vote.
The action leaves the tax, interest and penalty due as assessed. Sorensen thanked the commission for the opportunity to present the company’s circumstances.
Votes at a glance: Resolution 20 25-38 — Request from Hallmark Marketing Company to waive fees, interest, penalties and taxes (denied, 5–1).
