Saturday, November 5, 2011

Doubling up the tax payments rejected by aldermen

Taxpayers got a break from the aldermen on the property tax payment plan.   The proposal by the administration was to change from four payments to two payments.   Under the proposed change the first payment would have been a double payment and would have been due January 31st.   The second payment would have been due July 31st.

According to City records, under the current system, 9.6% of the taxpayers do not make that first payment in time and end up paying a 1% per month interest charge and a .5% monthly penalty charge, not only on that first payment, but on all the rest of the unpaid taxes for that year.

Demanding the double payment would most certainly have increased that 9.6% who could not make the January 31st payment in time.   The result would have been an increase in delinquency interest and penalty payment, which would take even more money out of the private sector and put it into the government coffers.

And that would not have been good for our local economy.

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