Taxes must be paid within one month of the due date to avoid penalty interest. Delinquent taxes are subject to interest at the rate of 1.5% per month (18% per annum), or any part thereof, from the original due date. The minimum interest charge is $2.00.
If you will be unable to meet your tax obligation or your taxes have already become delinquent, do not ignore this situation. It is important for you to contact the Tax Department to discuss an acceptable payment plan which will bring your account current within a reasonable period of time.
It is the duty of the Tax Collector to proceed with collection enforcement measures when taxes are not paid in full by the due date. In the absence of an acceptable payment arrangement, the Tax Collectors’ Office reserves the right to enforce collection of taxes by use of any of the following methods, which include but are not limited to:
Real Estate Taxes
Real estate liens are filed in May of each list year against all properties on which delinquent taxes exist. At least 15 days prior to the filing of these liens, a “Notice Of Intent To Lien” is sent to each delinquent taxpayer. If full payment is not made, the lien is filed with the Town Clerk’s office. All interest, taxes, and fees must be paid before the lien can be released and there is a $24 charge to release each lien. Past due real estate taxes will also result in the denial of building permits. No building permits will be issued by the City until all past due taxes are paid in full. Furthermore, without an acceptable payment plan or failure to adhere to an authorized payment arrangement, delinquent real estate accounts will be referred to the City’s Office of Legal Affairs. The delinquent accounts may be subject to foreclosure, tax sale, or initiation of legal suit. Any costs and fees associated with the collection of these taxes will be added to the amount due.
Personal Property Taxes
Uniform Commercial Code (U.C.C.) liens are filed with the Secretary of the State’s office on all delinquent business personal property taxes. All interest, taxes, and fees must be paid in full before the U.C.C. lien can be terminated and released. Failure to pay personal property taxes may result in the denial, suspension, or revocation of any City-issued license or permit (including a health permit). In addition, the Tax Office may use the services of state marshals to serve and collect Alias Tax Warrants.
Motor Vehicle Taxes
Per state statute, delinquent motor vehicle taxes are reported to the Department of Motor Vehicles (DMV). DMV will deny registration renewal on all vehicles in your name and any new vehicle registration until all taxes, interest, and fees are paid in full. To obtain a clearance for DMV, payment can be made in cash, money order, or bank check at the tax office and clearance will be processed in 24-48 hours. CLEARANCE FOR VEHICLE REGISTRATION IS NOT IMMEDIATE! Credit cards, debit cards, or e-checks paid online require 3 business days before a clearance will be issued. There is a 30 day waiting period if paid by personal check. When motor vehicle taxes become delinquent for 1 year, the account will be referred to an outside collection agency. A collection fee of 14% will be added to the bill, and the past due taxes may be reported to a credit bureau.