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Coldwater Council ends postmark rule for tax payments, waives city's $869 in penalties
Summary
On Nov. 10 the Coldwater City Council voted to stop accepting U.S. Postal Service postmarks to determine timely property-tax payments, approved a one-time waiver of the city's $869 portion of late penalties tied to Sept. 16 postmarks and reaffirmed the charter's 4% penalty rule.
The Coldwater City Council voted on Nov. 10 to stop accepting U.S. Postal Service postmarks as proof a property-tax payment was mailed on time and to waive the city's portion of late-payment penalties assessed for a small group of payments with a Sept. 16 postmark.
City finance staff told the council that postal service changes have made postmarks unreliable as evidence of when mail was actually received. Tom Eldred presented a memo explaining that mail pickup schedules and future-dating of postmarks mean a letter dropped off on one day may receive the next day's postmark. Eldred said the change affects a limited batch of receipts: 18 parcels tied to six property owners, with total penalties across taxing jurisdictions of roughly $2,600 and the city's portion equal to $869.
"We do not accept postmarks," Eldred said when describing the language that will appear on future bills. He told the council staff will reword winter bills to make the city's expectation clear and warned residents are likely to be upset when the printed statements change.
Council adopted three related resolutions in short succession: a policy establishing that the city will use the date a payment is received (not a postmark) to determine timeliness (Resolution 25-108; Policy P2504), a one-time waiver of the city's portion of the penalties for the Sept. 16 postmarked payments (Resolution 25-109), and a reaffirmation of the charter's 4% penalty rule (Resolution 25-110). All three measures passed by voice vote.
Eldred said the total penalties assessed for the Sept. 16 postmarks were "roughly $2,600," with the city's share at $869; he asked council to waive the city's portion and said staff would contact the county and school districts to request those taxing authorities adopt similar relief but noted the city's waiver applies regardless of the others' decisions.
Councilmembers pressed staff on alternatives, including setting a firm received-by date rather than relying on postmarks or encouraging use of the city drop box and electronic payment options. An unidentified council member described the existing online payment portal as "convoluted," and Eldred said the city would review payment options and noted a steady increase in electronic payments over the past decade.
The council directed staff to update billing language and continue outreach explaining the new policy. Staff said winter tax bills will be printed to state explicitly that postmarks are not accepted. The measure does not change the penalty rate established in the charter; the council reaffirmed the 4% municipal penalty during the same vote.
The action affects a specific set of late fees from the prior tax cycle; council did not change the underlying penalty percentage during this meeting.
