Tax Delinquents Targeted By Towns

Several communities south of Boston, Massachusetts are cracking down on property tax delinquents. In Bridgewater, MA, a wall of shame was created online with postings on a website naming local tax evaders with bills that predated 2006. Officials believe that they can shame and embarrass delinquents into collecting the $1.6 million that the town is owed.

A little way further down the road in Holbrook, the treasurer-collector attests that he might auction municipal tax debts to third-party debt collectors. A move like this would recover some of the $4 million in real estate taxes that the town is owed quickly. The Milton treasurer-collector recently paid to have a local newspaper publish the names of the top seven tax suspects in town, as a plan to embarrass them, and a warning to others, that they too better foot the bill. This measure has rapidly brought in close to $1 million in tax debts.

In the rough times of the recession, municipalities such as these towns are turning to any source of income that they can find. Bridgewater does not have the cash flow to follow standard protocol for back tax collection. This calls for publishing the tax list in the newspaper and putting liens on the unpaid amounts on deeds in the county registry.

Standard efforts for the back tax collection are in motion; delinquents will receive a warning letter for the last time next month. After this, the town could be more aggressive and sell the debts to third party collectors. Those in charge aren’t sure if this is the best option however, seeing as local collectors know the whereabouts and personal situations of the debtors better than a third party collector.

Towns looking to collect real estate taxes may also work with the homeowner’s mortgage holder and clue them in to the debt. The banks will typically pay the money and then bundle it into the mortgage.

Mallory McGuinness-Hickey works for collections company Rapid Recovery Solution and writes articles on collections and business practices.

Article Source: http://www.a.mooladays.com/1343/tax-delinquents-targeted-by-towns

Author Bio:



View Profile

Other Reads