Crestwood committees keep 2026 tax-penalty at 0%, agree to revisit for 2027

Crestwood School District committee members decided during their May 21 meeting to leave the district's late-payment penalty at 0% for tax year 2026 and to revisit a potential penalty next fall.

The discussion began when a board member asked Mr. Gallagher to explain the proposed penalty period. Mr. Gallagher said the board had not yet chosen whether to impose a penalty or what percentage to set, noting competing statutes surfaced in counsel conversations. "We have not yet... that's why we're here to discuss it," he said.

Board members pressed staff on revenue effects and fairness. Staff estimated that moving to a 7% penalty could reduce the proceeds the district receives when it sells delinquent tax receivables by roughly $63,000, and said the district's discount obligation could cost up to about $440,000 in a best-case scenario where everyone paid early. Board members argued for giving taxpayers clear notice before imposing any new penalty. "If we're going to do that, we might have wanted to do that in January to give people notice," one member said.

On process, members agreed it would be preferable to give residents advance notice and to implement any change starting in 2027. The board summarized the decision on the record: for 2026 the penalty entry would remain 0%, with a plan to revisit the issue in November or December for a potential 2027 change.

The committee forwarded its agenda items, including the item that references the penalty language, to the full board for final action at the May 21 voting meeting.