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Council expands tax-collection contractor's role to include personal property delinquencies
Summary
Council authorized the town's tax-collection contractor to take on delinquent personal-property collections after staff said the vendor's fees are charged to delinquent taxpayers and the town receives collected taxes in full; council asked staff to consider extending the approach to utility collections later.
The council voted on June 18 to expand an existing tax-collection contract—previously used for delinquent real-estate taxes—to collect delinquent personal-property taxes as well.
Finance staff said the contractor has successfully increased real-estate delinquent collections (from an average of roughly $120,000 to $140,000 and $253,000 in its first year) and the firm charges collection fees to delinquent taxpayers rather than the town. Town staff estimated personal-property delinquent collections of roughly $23,000 per year and suggested the contractor could likely double that amount.
Councilor Wood asked whether the vendor's services could eventually extend to delinquent utility accounts; staff said that is possible but would be considered separately because utility collections have specific rules and processes.
Council moved and seconded the contract expansion; voice vote approved the motion.
What happens next: staff will execute the contract amendment and provide oversight; recovered dollars from the vendor will be remitted to the town net of collection costs charged to the debtor.
