MONROE - Outstanding taxes are to county government as accounts receivable are to a business, Green County Finance Director Rhonda Hunter said.
"It's like you sold something and have billed for it, but it has not yet been paid," Hunter said.
About 2 percent of property taxes levied in 2008 - or just more than $1.3 million - were unpaid by the July 31, 2009, deadline. Unlike a business, the county isn't waiting for a profit in the paid bill. Roads have been built or maintained, labor has been paid. The money already has been spent.
"Surplus equity in the county is reduced, and the money is not available to be spent elsewhere," Hunter explained.
Because the county government collects tax money for other taxing bodies, it settles up with all appropriate taxing jurisdictions by Aug. 20. Therefore, all taxing entities, from the state down to local schools and towns, except the county, receive all their money by Aug. 20.
A property owner's first installment of taxes is due Jan. 31 and usually is paid at the municipalities. That money then is turned over to the county treasurer's office, which does a "February Settlement" by Feb. 20 and disperses money to the state, towns, cities, villages and school districts. Property owners who do not pay their first installment on time receive a letter in March and in June about their delinquent taxes.
This process leaves the county responsible for collecting the remaining taxes, which is why second installments due by July 31 are paid at the county treasurer's office.
Delinquent tax letters are sent again in the second week of August. Delinquent taxes are subject to interest and penalties of 1.5 percent per month. Payments in September will be charged 12 percent.
Interest and penalties not only cover the cost of notifications, but also help to reduce lost revenue, funds which could be gained by investing the delinquent tax money, according to Green County Treasure Sherri Hawkins.
Starting Sept. 1, collectible taxes go from being delinquent to being a "tax certificate," a lump sum that may include all other assessments or bills owed to a governing body. If a property goes to a tax certificate, owners are notified the second week in September.
If the amount owed to the county is not paid after two years, information on the parcels of property are passed to the county clerk's office, which has the authority to issue a 90-day notice and start a tax deed process, to take and sell the property for back taxes.
According to Green County Clerk Mike Doyle, the county takes and sells property about twice a year, but that is not the preferred route. The county wants the tax money, not the property, he said. The county has had to sell four pieces of property in the past three years, the latest being just two months ago.
"Usually we have some time to work with (property owners)," Doyle said.
Doyle said he writes letters or calls the owners or mortgage holders asking "to work out some kind of payment plan" or to let him know if the property is in some kind of foreclosure. The county does not settle for payments of less than the taxes owed, he added.
"It's like you sold something and have billed for it, but it has not yet been paid," Hunter said.
About 2 percent of property taxes levied in 2008 - or just more than $1.3 million - were unpaid by the July 31, 2009, deadline. Unlike a business, the county isn't waiting for a profit in the paid bill. Roads have been built or maintained, labor has been paid. The money already has been spent.
"Surplus equity in the county is reduced, and the money is not available to be spent elsewhere," Hunter explained.
Because the county government collects tax money for other taxing bodies, it settles up with all appropriate taxing jurisdictions by Aug. 20. Therefore, all taxing entities, from the state down to local schools and towns, except the county, receive all their money by Aug. 20.
A property owner's first installment of taxes is due Jan. 31 and usually is paid at the municipalities. That money then is turned over to the county treasurer's office, which does a "February Settlement" by Feb. 20 and disperses money to the state, towns, cities, villages and school districts. Property owners who do not pay their first installment on time receive a letter in March and in June about their delinquent taxes.
This process leaves the county responsible for collecting the remaining taxes, which is why second installments due by July 31 are paid at the county treasurer's office.
Delinquent tax letters are sent again in the second week of August. Delinquent taxes are subject to interest and penalties of 1.5 percent per month. Payments in September will be charged 12 percent.
Interest and penalties not only cover the cost of notifications, but also help to reduce lost revenue, funds which could be gained by investing the delinquent tax money, according to Green County Treasure Sherri Hawkins.
Starting Sept. 1, collectible taxes go from being delinquent to being a "tax certificate," a lump sum that may include all other assessments or bills owed to a governing body. If a property goes to a tax certificate, owners are notified the second week in September.
If the amount owed to the county is not paid after two years, information on the parcels of property are passed to the county clerk's office, which has the authority to issue a 90-day notice and start a tax deed process, to take and sell the property for back taxes.
According to Green County Clerk Mike Doyle, the county takes and sells property about twice a year, but that is not the preferred route. The county wants the tax money, not the property, he said. The county has had to sell four pieces of property in the past three years, the latest being just two months ago.
"Usually we have some time to work with (property owners)," Doyle said.
Doyle said he writes letters or calls the owners or mortgage holders asking "to work out some kind of payment plan" or to let him know if the property is in some kind of foreclosure. The county does not settle for payments of less than the taxes owed, he added.