[ back ]
City makes headway on income-tax deadbeats
(by Joseph Koziol Jr. - February 18, 2009)
City makes headway on income-tax deadbeats
By JOSEPH KOZIOL JR.
A new tax clerk hired by the City of Chardon late last year is slowly making progress in ensuring that everyone who owes municipal income taxes is paying.
"This isn't instant results; it's going to take a little time," Chardon Finance Director Jeffrey Smock told City Council last week.
He said the new tax clerk, who was hired by the city Nov. 10 for the specific purpose of searching out those owing taxes, has created a database of city taxpayers and is sending letters to property owners who rent.
One of the main targets of the tax searches is the larger apartment complexes in the city, where whole buildings, rather than individual apartments, are metered, Mr. Smock said. Those are some of the hardest to track, he said, because often those living there tend to be more transient.
The city is asking landlords to identify those living in their apartments, including when they moved in or out, to better assess who owes taxes to the city.
Mr. Smock said the tax clerk sent out 213 letters seeking that type of information. To date, he said, the city has received 126 responses.
Another 45 letters have been sent to property owners who lease properties to businesses. Of those 45 letters, he said, the city has received 25 responses.
He said the city will now follow-up with letters to notify those who failed to reply. If they still bring no response, he said, the city will begin knocking on doors to get the information.
Mr. Smock said he anticipated that the city will begin to document those who may have evaded paying taxes in the next several week.
The city already has 4,000 lines of data in the database with most listing those over the last five years.
Even if the city can document every person that may owe taxes, he said, it will be harder to get them to pay.
He said the city is beginning by looking at the most current delinquent cases, because they are the most likely to pay. He said the city would then "work backwards" to seek those who may have owed in the more distant past.
He said the city was also recently notified that the Central Collection Agency, which is hired by the city to oversee tax collections, that it will be provided access to the federal tax system through a joint agreement with the Internal Revenue Service. Previously, the company only had that type of information for the City of Cleveland.
Mr. Smock said he anticipated that access to that information will enhance the company's ability to detect and collect from those owing the City of Chardon.
He said the city is also working with the collection agency to send 300 letters asking that they appear to address businesses and individuals who have not fully paid their municipal taxes. He said two dates will be set up for those appearances.
In the past, he said, this type of program has brought approximately 50 percent compliance.
He said the city is also planning a day at City Hall in which Central Collection Agency representatives will be available to assist residents in filling out tax forms. That assistance, he said, will be offered from noon to 3 p.m. March 28 at City Hall.
[ back ]
