RSS
|
|
“This year's collection rate is lower than last year's because of several factors,” Lee said in response to an e-mail inquiry by the Daily Herald. “Our largest taxpayer has appealed their tax value set by Halifax County. Until this appeal is settled, the receivable sits on our books, but we are legally prohibited from pursuing any collection action.”
While Lee declined to name the taxpayer, it is public knowledge KapStone Paper is appealing the tax value set by the county. She said the taxpayer is committed to making a partial payment in April, which is expected to be around $400,000. The balance will be paid once the appeal is settled, she said.
The economy also plays into the lower than normal collection rate, Lee said. “We also have many taxpayers who were unable to make full payment of their tax bill this year,” she said. “Many of them are making small monthly payments in an effort to make full payment before June 30. This combined with the overall changes in the economy have made our collection percentage lower than last year.”
The city’s tax collector is working with other taxpayers to set up a payment plan that will not overburden the taxpayer but will ensure collection of all taxes due by June 30, Lee said.
The impact this will have as the current fiscal year comes to a close is unknown, Lee said. “It’s too early to say what impact if any this will have on our June 30 collection rate. We’ll continue to monitor this and make other adjustments as they are needed.”
Comments
Fed-Up wrote on Mar 29, 2009 12:40 PM: