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Committee backs $245,816.61 transfer of uncollectible motor vehicle and personal property taxes to suspense book
Summary
The Operations Management, Budget and Government Accountability Committee voted to forward a resolution to the full council recommending transfer of $245,816.61 in uncollectible motor vehicle and personal property taxes to the suspense receivable, replacing an incorrect amount shown on the agenda.
The Operations Management, Budget and Government Accountability Committee voted June 16 to send to the Common Council a resolution recommending the transfer of $245,816.61 in uncollectible motor vehicle and personal property taxes to the city’s suspense receivable.
The amount recommended to be moved to the suspense book was presented as a substitute to the figure that appeared on the meeting agenda. Councilman Amir Hernandez, chair of the committee, and staff confirmed the substitute amount during the meeting and the committee acted to place the correct figure on the record before forwarding the measure.
Tax collector Katiria, who presented the item, said the accounts on the suspense list are those the tax collector and contracted collection agencies have determined to be not currently collectible. "The accounts are not collectible as determined by our collection agencies for reasons such as bankruptcy, businesses going out of business, taxpayers that move out of state, or some taxpayers that are on the collection agencies are cannot locate, deceased taxpayers," Katiria said. She added that if new information arises the city and collection agencies will continue collection efforts.
CFO Leanne Rose and other committee members clarified that placing accounts in the suspense receivable removes them from the city’s active receivables but does not prohibit future collection or affect the practical ability of a taxpayer to register a motor vehicle: Councilman John Gayle asked whether unpaid taxes would still block vehicle registration, and Katiria replied, "Correct." Committee members also asked about the number of accounts; Katiria said the list represents about 320 to 350 accounts.
Committee members noted the agenda showed a different amount and discussed whether the substitute had been formally filed with the town clerk. The committee proceeded on the understanding that the substitute would be recorded; the motion forwarded the resolution with a favorable recommendation and the corrected amount of $245,816.61.
The committee recorded the motion to forward the resolution with a favorable recommendation; the motion passed on a voice vote (ayes). The forwarded item will proceed to the full Common Council with the substitute amount on the record.
