Date: Fri 19-Dec-1997

Publication: Bee

Author: STEVEB

Quick Words:

council-tax-collection

Full Text:

Finance Panel Tries To Squeeze Something Out Of Delinquent Taxes

BY STEVE BIGHAM

In total, Newtown is still awaiting payment for $1.3 million in taxes and it

doesn't expect to collect much of that money.

The amount of taxes due the town remains pretty steady year to year, always

ranging somewhere between $1.5 to $2.1 million, according to Finance Director

Benjamin Spragg. It never goes much lower than that as 100 percent collection

rarely happens.

To avoid the loss, the Legislative Council may eventually sell those liens to

a collection agency, something it has never done before. The council's finance

committee is looking into this after it was suggested by council member Donald

Studley.

"We feel because of the quality of the town and real estate, our goal is to

realize 100 percent," said finance committee chairman John Kortze. "That would

be a big capital shot in the arm for us."

The town could create a savings account with this "cash infusion" or put it

into a capital non-recurring account. Other area towns and cities do this,

including Danbury and Bethel.

The downside to selling the tax liens is that the town loses out on the 18

percent interest. However, the finance committee believes collecting most of

the unpaid revenue is still better than collecting little or none at all.

"Instead of letting them linger and not collecting them, why not realize it,

then use the money to offset future tax increases," Mr Kortze said.

The council is expected to make a final determination on whether or not to

sell the liens.

Last year, the town collected 98 percent of its taxes -- quite possibly a

record for Newtown. The total budget was nearly $37 million.

"We haven't had 98 percent in the ten years I've been in this office," Mrs

Mahoney said.

Of course, that's only about two tenths of one percent higher than the average

collection rate, but it equals $74,000 more, according to Mr Spragg.