Minutes 11/08/1983 - Laserfiche WebLink

Home Browse Search

~08 TUESDAY NOVEMBER 8, 1983 If we continue to aggressively collect delinquent real estate taxes, the City Council will continue to receive the same types of requests for waiver of penalty and interest as in the past two years. When the long- term delinquencies are cleared up, perhaps there will be fewer requests, since in the majority of cases, the tax would be delinquent only a few years. However, unless some specific action is taken by the Council, waiver requests may continue to be a reality. There are two basic options open to the Council: to rescind the ordi- nance adopted November 10, 1981, and no longer provide for waiver of penalty and interest; or to adopt more specific guidelines to be used when considering future waiver requests. The first option is the simpler; however, it also limits the Council's prerogatives. While it would put an end to what may otherwise be a perpetual parade of waiver-seekers, it would also shut the door on the truly legitimate requests. One positive point is that all owners of property with delinquent taxes have been notified that the delinquencies exist. Thus, they have had ample opportunity to pay the tax, request a waiver of penalty and interest, or respond in some way. As long as we retain an active program of collections, we should never again be faced with a situation where the delinquent tax is up to twenty years old. The second option is to adopt a set of guidelines that would be used when undertaking staff review on a request for waiver. Because of the variety of circumstances and peculiarities of each individual situation, there would always be cases that cannot be simply categorized. This is further complicated by language in the City ordinance stating that any taxpayer seeking a waiver shall have the burden of showing that failure to pay the tax was not in any way his/her fault. With the guidance of the City Attorney, the following five criteria have been developed. The existence of any of these in a case would indicate that the taxpayer is not at fault, and that the penalty and interest should be waived: 1. An attorney was engaged to perform a title check, and the delinquency was overlooked; 2. The property was inherited or acquired by gift, and the delinquency occurred prior to the inheritance; 3. The delinquency occurred under a joint tenancy with sur- vivorship (as in husband/wife) and where only one of the joint tenants is surviving; 4. The records show that the tax ticket was mailed to an erroneous address (other than that of the present owner); and 5. Failure to pay the tax was due to some other administra- tive error on the part of the City.