Butler County billed a total of $695.5 million in property taxes — current and delinquent combined — this year, which is a 10.8% increase over last year. Greene County billed $368.7 million in new and delinquent taxes, an 11.25% increase; and Montgomery County tax bills for the first and second half installments totaled $1.13 billion, a 7.45% hike.
As of the Butler County Aug. 2 tax deadline, county Treasurer Mike McNamara’s office collected $667.1 million which represents a 4% delinquency rate compared to 4.4% last year, before the property value increase.
McNamara told this news outlet, “I don’t have any explanation for that” but he surmises all the efforts the county auditor, commissioners and his office made to let people know huge tax bills were coming might be why delinquencies didn’t skyrocket.
“For six or seven months before the bills were even mailed for first half collections this year, we’ve engaged in an aggressive public awareness campaign,” McNamara said. “I don’t know if that makes a difference but I am very happy to see that right now our delinquency does not appear to be increasing.”
It’s a much different story in Montgomery County, the tax bills were due July 19 and of the $1.13 billion billed only $958 million was collected by the due date which is a 16% delinquency rate, compared to 10.2% the previous year.
Greene County had a 5.4% delinquency rate as of the July 19 tax deadline, collecting $348.7 million.
Montgomery County Treasurer John McManus said tax collections and delinquencies vary widely, depending on a county’s demographics and numerous other factors.
“Delinquency in Ohio’s large urban counties is generally different than delinquencies in smaller counties and/or those with newer property portfolios. Why? The large swaths of vacant and abandoned properties across Dayton and Montgomery County’s urban core are more than an eyesore and a target for crime. They carry with them decades worth of delinquent taxes,” McManus said.
McManus noted that just because someone missed the payment deadline doesn’t mean they are considered “delinquent” in legal terms, the county auditor must certify a parcel as delinquent. He said to combat the delinquency problem Montgomery County sells tax liens to third parties for collection, which should bring the delinquency rate down to around 12% by year’s end.
McNamara said they revisit the tax lien option periodically and “we’ve never felt we’ve been at a point in delinquency where that is desirable to be able to collect on what’s owed. We have an excellent prosecutor’s office and we’re able to maintain a low delinquency rate.”
Delinquency numbers are very fluid since past due bill payments come in all the time and some people default on their repayment plans which means additional penalties, among other variables. Probably the best barometer are the tax deadlines — bills are due in two installments — because after that penalties start mounting.
As prescribed by state law, a 10% late fee is charged immediately after the deadline, but if they pay within 10 days the penalty is halved. Interest on the unpaid amounts is also charged. As long as a payment is postmarked by the deadline no penalties will ensue.
All three counties offer payment plans and the state is somewhat liberal in allowing them to craft their own repayment criteria. McNamara said basically they draw up a contract giving a taxpayer 60 months to pay off back taxes — while still keeping current with new charges — but extenuating circumstances are considered. He said they currently have contracts with 649 taxpayers who owe a total of $2.27 million.
“If somebody had medical bills, has been hit hard with financial crisis or a personal shock to their income but are still demonstrating an effort to pay their taxes, it’s our goal to try and work with them as much as possible,” McNamara said. “We do everything we can within the law to try and help people maintain their properties.”
The three counties also have escrow programs, much like mortgage payments, which allows taxpayers to pay small bills year round, rather than two big chunks annually.
Butler County Chief Assistant Prosecutor Kevin Gerrity said they don’t file foreclosures on every delinquent property — that would be impossible — and they don’t start proceedings until a parcel has been on the certified delinquent list for at least two years. The amount owed is also considered. A $600 past due amount on an abandoned lot would not be a prime target for foreclosure, but $50,000 or even $15,000 would, according to Gerrity.
“County resources limit us in not being able to take on every single delinquency case on the list in a calendar year,” Gerrity said. “We look at that and assess if it would be in the county’s best interest to go after the property that is delinquent in a higher amount.”
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