MONROE - Do you favor a multiple installment payment option for the payment of real property taxes in the City of Monroe?
The city is considering a multiple installment payment option to begin in 2015, if the community expresses a willingness to adopt the option in an advisory referendum on the Nov. 4 ballot.
The Common Council is expected to take up the issue and consider approving a proposed referendum at its meeting Aug. 19.
Alderman Michael Boyce suggested the option plan and referendum at a meeting of the Judiciary and Ordinance Review Committee Aug. 5.
Property taxes are currently due in two, equal payments, in January and July. Allowing a four-payment option would provide taxpayers with an easier method to meet their obligations and reduce the recurrence of delinquencies, Boyce said. He noted Madison has had success with its multi-payment option begun in 2008, and said many Wisconsin communities do provide the option.
The Green County Treasurer's office said delinquencies in the past have been 2 percent for the county. The City of Monroe has about 3,600 tax bills, and interest collected on delinquencies in the City of Monroe totaled about $4,000 in 2013.
Boyce believes taxpayers would gain great control over the timing of their payments with smaller amounts, about one-fourth of their total tax bill, due every other month, starting in January. Spreading out the due dates for payments would also give taxpayers more time to receive income tax refunds, which would provide them with extra funds to meet property tax payments, he added.
A multiple installment payment option would also reduce the interest amount charged to delinquent Monroe taxpayers by 0.05 percent.
There are advantages for the city as well, Boyce said.
The city would be allowed to keep all of the interest charged on delinquent payments. The city would also be able to keep all the interest it earns from investing the collected taxes, until distributing the proper proportions to the other taxing districts.
But there are some drawbacks, as city staff pointed out. The city might need extra staff to handle the added workload every other month. The city currently hires temporary help, about four to six hours on several days a week in December and January for about $900, to collect the first half of tax payments, while the county takes care of accepting the second payment.
The process could involve printing and mailing out tax bills every other month; though, Boyce said that step would not be needed, as each taxpayer would choose and agree to a payment option and could make their second, third and fourth payments to the county office. Computer software would also need to be updated to accommodate the new service.
Settling tax payments with the other taxing entities could also add time to city staff workload.
Taxpayers would possibly lose the ability to pay taxes online through the county's website, but the city could set up the same availability through its website. Also, tax payment updates may not be readily available on the county website and cause some confusion for title companies.
Still, even if the city finances involved in such an option plan are "a wash," with the city not making more money than it costs to provide the plan, Boyce said, the idea is about the offering the service to ease a burden on taxpayers, particularly those living on fixed incomes.
Members of the committee were dubious about starting a multiple payment option.
Alderman Charles Koch said the new option might help some people, but if they planned accordingly, they could make their payments on time. He also favored it "if it were beneficial to everybody," but after hearing about the possibility of added paperwork and hiring more help, he wanted to see the cost numbers as they affect the city.
Boyce also said he wanted "to see the numbers."
While they wait for the staff to compile the numbers, committee members are looking for feedback from citizens. Feedback can be submitted on the city website or by calling a member of the Common Council.
The city is considering a multiple installment payment option to begin in 2015, if the community expresses a willingness to adopt the option in an advisory referendum on the Nov. 4 ballot.
The Common Council is expected to take up the issue and consider approving a proposed referendum at its meeting Aug. 19.
Alderman Michael Boyce suggested the option plan and referendum at a meeting of the Judiciary and Ordinance Review Committee Aug. 5.
Property taxes are currently due in two, equal payments, in January and July. Allowing a four-payment option would provide taxpayers with an easier method to meet their obligations and reduce the recurrence of delinquencies, Boyce said. He noted Madison has had success with its multi-payment option begun in 2008, and said many Wisconsin communities do provide the option.
The Green County Treasurer's office said delinquencies in the past have been 2 percent for the county. The City of Monroe has about 3,600 tax bills, and interest collected on delinquencies in the City of Monroe totaled about $4,000 in 2013.
Boyce believes taxpayers would gain great control over the timing of their payments with smaller amounts, about one-fourth of their total tax bill, due every other month, starting in January. Spreading out the due dates for payments would also give taxpayers more time to receive income tax refunds, which would provide them with extra funds to meet property tax payments, he added.
A multiple installment payment option would also reduce the interest amount charged to delinquent Monroe taxpayers by 0.05 percent.
There are advantages for the city as well, Boyce said.
The city would be allowed to keep all of the interest charged on delinquent payments. The city would also be able to keep all the interest it earns from investing the collected taxes, until distributing the proper proportions to the other taxing districts.
But there are some drawbacks, as city staff pointed out. The city might need extra staff to handle the added workload every other month. The city currently hires temporary help, about four to six hours on several days a week in December and January for about $900, to collect the first half of tax payments, while the county takes care of accepting the second payment.
The process could involve printing and mailing out tax bills every other month; though, Boyce said that step would not be needed, as each taxpayer would choose and agree to a payment option and could make their second, third and fourth payments to the county office. Computer software would also need to be updated to accommodate the new service.
Settling tax payments with the other taxing entities could also add time to city staff workload.
Taxpayers would possibly lose the ability to pay taxes online through the county's website, but the city could set up the same availability through its website. Also, tax payment updates may not be readily available on the county website and cause some confusion for title companies.
Still, even if the city finances involved in such an option plan are "a wash," with the city not making more money than it costs to provide the plan, Boyce said, the idea is about the offering the service to ease a burden on taxpayers, particularly those living on fixed incomes.
Members of the committee were dubious about starting a multiple payment option.
Alderman Charles Koch said the new option might help some people, but if they planned accordingly, they could make their payments on time. He also favored it "if it were beneficial to everybody," but after hearing about the possibility of added paperwork and hiring more help, he wanted to see the cost numbers as they affect the city.
Boyce also said he wanted "to see the numbers."
While they wait for the staff to compile the numbers, committee members are looking for feedback from citizens. Feedback can be submitted on the city website or by calling a member of the Common Council.