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Hoosick board considers cutting off personal checks for taxes and shifting banks to reduce bounced payments
Summary
Town staff proposed stopping acceptance of personal checks after mid-March for property tax payments to avoid bounced checks; counsel said a local law and public hearing would likely be needed; staff also discussed moving town accounts to Pioneer Bank for remote deposit and courier services.
Holly, the town staff member who manages receipts, told the Hoosick Town Board that recurring bounced personal checks after mid-March are creating accounting problems when end-of-March books are closed. She said the Bureau of Finance advised another municipality stops taking personal checks after March 15.
“If a check bounces, I turn over my books within a week after they close out at the end of March … I’m turning over money that really isn’t there,” Holly said, explaining why the office is considering restricting payment methods during tax season.
Ryan, the town attorney, said changing the town’s cutoff for personal checks would likely require a local law and a public hearing. “I would need to do a little bit of research, but I think it would need to be a local law,” he said, urging staff to research how other towns handle similar policies.
Holly also described a separate operational change: moving town accounts from Key Bank to Pioneer Bank. Pioneer confirmed it can provide courier services and remote-deposit solutions that staff believe would reduce delays in check clearing. Holly noted that remote deposit and coordinated courier pick-ups during tax season could mitigate the timing issues that produce bounced checks.
Board members asked practical questions about courier frequency during peak tax season and publicity for any new policy; staff said a public-notice campaign and website updates would be necessary if the board adopted a cutoff date. Ryan said the town should publicize any change at the start of the tax season and hold the required hearing if a local law is pursued.
No formal policy was enacted at the meeting; staff were asked to return with a draft proposal and examples from other towns for the board’s review.
