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Council approves write-off of uncollectible tangible and motor-vehicle taxes
Summary
The council adopted Resolution 2025-24 to remove uncollectible tangible and motor-vehicle tax accounts from the books after staff explained many are small amounts tied to businesses that closed or moved away and are beyond cost-effective collection.
The Lincoln Town Council voted to adopt Resolution 2025-24 authorizing the write-off of certain tangible and motor-vehicle tax accounts classified as uncollectible. Staff explained these accounts are typically small balances tied to businesses that went out of business or moved without forwarding contact information; in many cases the cost to pursue collection would exceed any recovery and statutes of limitations block further legal action.
A staff member described the process: these accounts are referred to a law firm that performs collections for multiple communities and, if the firm determines an account is uncollectible, it is returned to the finance department for resolution. The purpose of the resolution is primarily accounting: to clear accounts receivable items that will not be collected so the town's financial records are not carrying stale receivables. The council discussed whether the accounts were primarily business or motor-vehicle related and staff confirmed most were tangible (business) accounts; individual account details were made available to the council in a report.
The council moved and approved the resolution by voice vote.
