“Low unemployment and a humming economy should be credited for (the drop in delinquency rate),” Nix said.
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Her office works with the county prosecutor to collect delinquent taxes.
“There are taxpayers who face obstacles in paying their real estate taxes, due to job loss or serious medical issues or because they are on a fixed income while voters pass new levies,” Nix said. “It’s a balancing act trying to help those who have fallen behind while also being responsible to taxpayers to fund our schools, agencies and government entities.”
Unemployment in the county stood at 4.4 percent as of July, according to the Bureau of Labor Statistics. The lowest unemployment statewide was 2.9 percent in Mercer County, and the highest was 7.5 percent in Monroe County on the eastern edge across from West Virginia. Unemployment skyrocketed here during the Great Recession to 9.3 percent in 2009 and 2010.
“At all levels we are experiencing a robust economy, people have employment and the ability to make their payments,” said Butler County Auditor Roger Reynolds.
Less than one decade ago, the county faced a $7 million budget gap, reserves that had dropped below $9 million in 2009 and seriously considered a 0.25 percent sales tax increase.
The county since has reached a Moody’s Investors Service bond rating upgrade to Aaa, the total unencumbered fund balance is expected to be $219.6 million at the end of next year and general fund debt — that stood at $92.3 million in 2009 — will be erased in 2020.
The treasurer’s office bills and collects property taxes, and the auditor’s office figures and distributes payments twice a year to the jurisdictions. Reynolds said the schools received about 75 percent of all property taxes.
West Chester Twp. Finance Director Ken Keim said it is difficult to know the impact of more people paying their taxes because the township hasn’t received its second-half distribution yet. He said the township levied $27.46 million in property taxes last year and received $26.6 million. With $853,113 outstanding, the township had a 3.1 percent delinquency rate.
“Hypothetically if West Chester saw a 32 percent decrease in the delinquency rate, that would have equated to a $272,996 increase in collections in 2018,” Keim said. “Nix’s figures are countywide and don’t directly apply to individual communities in their collections, West Chester’s may be lower at 3.1 percent.”
The delinquency rate in Oxford is even lower at 2.6 percent, according to Finance Director Joe Newlin.
“Over the past five years, the city of Oxford’s current property tax collections has averaged 97.4 percent of the total assessed taxes,” Newlin said. “When adding in delinquent tax collection during the same five years period the average collection percentage is 100.2 percent. That being said, the City is fortunate to being whole on its property tax collections.”
Middletown City Manager Doug Adkins said the city hasn’tfelt the impact yet.
“The city of Middletown has not seen a meaningful increase in property tax receipts over the prior year as a result of the reduction in delinquency,” he said.
County Commissioner Don Dixon said the delinquency rate drop is positive news for the county, especially because there are costs associated with trying to collect the delinquent cash.
“It saves everybody all the way around because it costs money when there’s an issue with delinquency,” he said. “It just ripples through the entire community. It’s a very good sign.”
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