Property Tax Collection Procedures

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Taxes for the fiscal year are paid on the Grand List of the prior October 1 and are due July 1 and January 1. Real estate and personal property taxes of $100 or more are payable in two equal installments due July 1 and January 1. Real estate and personal property taxes of less than $100 are due in full July 1. Motor vehicle taxes are payable in one installment on July 1 with Motor Vehicle Supplemental bills payable on January 1. Payments not received by August 1 and February 1 coinciding with their respective due dates become delinquent and are charged interest at the rate of 1.5% per month from the original due date of the tax. In accordance with State law, the oldest outstanding tax on any specific property is collected first.

Checks which have been returned by the bank shall be subject to a twenty dollar ($20.00) handling fee.

 

Collection Enforcement

 

Real Estate:

- Mail delinquent notice in August and February (the months after the due dates).

- Mail notice of Intent to Lien - SS 12-175 – in March with the Demands.

- Lien real estate yearly. End of March or beginning of April, place the liens on all delinquent accounts at that time. (SS 12-173)  Add $24 lien fee per account.

- Demand letters are to be mailed in March with Intent to Liens. Include collection methods: e.g., alias tax warrants (12-162), jeopardy collection (12-163), collection by suit (12-161), and revocation of license or permit (12-146a), to name a few.  Refer to SS 12-155 for a more complete list.

- If no payment from demand letter, send out for further collections allowed in the state statutes per SS 12-155.

 

Personal Property:

- Mail delinquent notices in August and February (the months after the due dates).

- Mail notice of Intent to Lien in March. These liens will be UCC-1 Financing Statement filed with the Secretary of the States office. File these liens as soon as the deadline is up. Add a $2 processing fee to all accounts liened.

- Demand letters to be mailed in March with Intent to Liens.   

- Mail demand letter, which includes collection methods: e.g., alias tax warrants (12-162), jeopardy collection (12-163), collection by suit (12-161), and revocation of license or permit (12-146a), to name a few.  Refer to SS 12-155 for a more complete list.

- File UCC-1 Lien with Secretary of State. (List items from assessor’s filing) 12-195a-g.

 

Motor Vehicles:***

- Mail delinquent notices at least four times a year.

- Report delinquents to the motor vehicle department per SS 14-33 in the first week of August or February, depending on when the tax was due.

- Revoke registration for bad check (if check is not made good).

- If need clearance for DMV right away, delinquent taxes must be paid by cash, money order, or bank certified check. Will accept check for delinquent taxes, but must wait until check clears before giving clearance.

- Releases are not to be given "for one vehicle only." Must pay all taxes on all vehicles in his/her or joint names in order to get a release. SS 14-33a.

- Office will accept partial payments on motor vehicles bills, but no clearance for the motor vehicle department until all motor vehicle taxes are paid.

***Motor vehicle collection effort tied to registration renewal schedule.

 

Delinquent real estate, motor vehicle, and personal property accounts are transferred to a suspense account when it is determined they are uncollectible and they cease to be carried as receivables (assets of the Town). Suspended accounts may be referred to a collection agency or other collection procedures for further collection. Per state statute, tax bills (even accounts put on suspense) remain payable for 15 years from the date first due and continue to accrue interest at the statutory rate of 18% per year.