Hendersonville staff to draft ordinance allowing partial payments, payment plans for property taxes

The Hendersonville Finance Committee directed staff to draft an ordinance to permit partial payments and payment plans for property tax bills now that the city's upgraded Munis billing system supports the feature.

A staff presenter explained that Tennessee law (TCA) allows municipalities to accept partial payments or create payment schedules but that an ordinance must be adopted to establish program details. "Our old software would not allow for a partial payment. Now that we are on our new software, we do have the ability to do so," the presenter said. Staff noted the municipal technical-assistance guidance (MTAS) recommends no more than four monthly payments and that unpaid balances begin accruing interest on March 1; unpaid balances are turned over to the clerk and master for collections the following year.

Staff estimated the number of taxpayers likely to use the option would be small (a rough staff estimate offered during discussion was about 20 taxpayers opting for multiple payments), and said there is no major additional cost because existing staff can handle processing. Receipts will show remaining balances; it will be the taxpayer's responsibility to track and pay remaining installments. The committee discussed safeguards and collection steps and agreed the program could be available on request rather than broadly advertised.

A committee member volunteered to sponsor the ordinance when staff returns with draft language. No formal vote was required at the meeting; staff were asked to prepare an ordinance for committee consideration.