(March 30, 2017) Pocomoke City, which just launched a campaign to collect hundreds of thousands of dollars in unpaid personal and business property taxes, is offering those who owe an opportunity to square up, minus penalties and interest.
City Manager/City Attorney Ernie Crofoot shared some background on the fiscal concern.
“Several years ago, the county took over billing for real property taxes, but what they wouldn’t take over was billing for back taxes,” he said. “Our auditors have advised us we should try to collect any amount due to us.”
In addition to property taxes on land and buildings, Crofoot said the tally also included miscellaneous costs incurred by Pocomoke to maintain and secure abandoned properties.
“We agreed to waive penalties and interest if you paid the base amount,” he said. “I think, as word gets around, more will come in.”
During the first two weeks, Crofoot said the collection campaign had netted about $18,000.
“We started out a few weeks ago to make every effort to collect this stuff,” he said. “Given that there weren’t [as] intense efforts to collect in the past, we’re trying to be reasonable.”
Crofoot noted that before real estate sales can be completed, back taxes must be paid in full at closing.
“A lot of times people move and after 90 days don’t have the mail forwarded and tend to forget,” he said. “Trying to trace these people is complicated. It’s really hard to track people.”
In some cases, penalties and interest add up to more than the principal owed, Crofoot said.
“I’ve got one guy that owns six properties with a total tax bill of $3,000,” he said. “The penalties are more than the principal.”
Crofoot said the focus is strictly on collecting base amounts.
“Some are several years old,” he said. “We’re duty bound to try and collect that.”
City Manager/City Attorney Ernie Crofoot shared some background on the fiscal concern.
“Several years ago, the county took over billing for real property taxes, but what they wouldn’t take over was billing for back taxes,” he said. “Our auditors have advised us we should try to collect any amount due to us.”
In addition to property taxes on land and buildings, Crofoot said the tally also included miscellaneous costs incurred by Pocomoke to maintain and secure abandoned properties.
“We agreed to waive penalties and interest if you paid the base amount,” he said. “I think, as word gets around, more will come in.”
During the first two weeks, Crofoot said the collection campaign had netted about $18,000.
“We started out a few weeks ago to make every effort to collect this stuff,” he said. “Given that there weren’t [as] intense efforts to collect in the past, we’re trying to be reasonable.”
Crofoot noted that before real estate sales can be completed, back taxes must be paid in full at closing.
“A lot of times people move and after 90 days don’t have the mail forwarded and tend to forget,” he said. “Trying to trace these people is complicated. It’s really hard to track people.”
In some cases, penalties and interest add up to more than the principal owed, Crofoot said.
“I’ve got one guy that owns six properties with a total tax bill of $3,000,” he said. “The penalties are more than the principal.”
Crofoot said the focus is strictly on collecting base amounts.
“Some are several years old,” he said. “We’re duty bound to try and collect that.”