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Clark County’s tax foreclosures top Montgomery, Champaign, Greene

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By Josh Sweigart, Staff Writer Updated 3:18 PM Sunday, March 6, 2011

It may seem Clark County Treasurer Stephen Metzger is in the minority for insisting taxpayers pay all of their property taxes or none of it — forcing those who can’t pay the bill to rack up additional fees and interest.

But that’s possibly the statewide norm, according to Tom Steenrod, executive director of the County Treasurers Association of Ohio.

“I’d say most don’t (take partial payments), only because it messes with the actual foreclosure process,” he said. “If you take a partial payment on a property that’s close to foreclosure, you basically have to start that process over, because you’ve basically accepted part of the money.”

Clark County filed more tax foreclosures in 2010 than Montgomery, Greene and Champaign counties combined. All of the latter counties accept partial payments.

The discrepancy in the number of tax foreclosures is wide. And the causes are myriad, according to county treasurers and assistant prosecutors in these counties.

The Clark County Prosecutor’s Office in 2010 filed 269 tax foreclosures on behalf of the treasurer’s office. Montgomery County filed 150, Greene County 18 and Champaign County only four.

“That’s by far the most we’ve ever done, and probably 100 more than any other year,” said Bill Hoffman, assistant Clark County prosecutor. He said the county filed 160 foreclosures in 2009.

“I think that’s the economy,” Metzger said of why the number of parcels certified delinquent in 2010 jumped to 540 from 250 the year before. The reason there were 540 parcels certified delinquent last year but 269 tax foreclosures is that the certification merely begins a legal process that over more than a year can result in a tax foreclosure filing.

$511 in fees and interest

In Clark County, first half property taxes were due Feb. 18.

For property owners who missed the due date, the county tacked on a 10 percent late fee March 1. That amount will be added to the second half taxes due July 8, which — if still unpaid — will rack up another late fee, then interest in December and again the following August.

It adds up fast. In one year, a $3,000 unpaid property tax bill will tack on $511 in fees and interest by the end of the year it’s due.

Some county treasurers allow people to pay down a portion of that principal, assessing fees and interest on a smaller amount owed. If a property owner pays only $1,000 of their first half taxes, this would save them $226 by the end of the first year alone.

Metzger is firm that he will not accept partial payments.

“I’m collecting the money that the community has asked me to collect,” he said, arguing it wouldn’t be fair to those who make their payments on time.

But Metzger does provide several programs to help people come current on their taxes. This includes breaking their unpaid taxes into five or 10 installments that can be paid along with current taxes over a few years.

County treasurers would rather someone set up a payment plan than make a partial payment. While someone is on a payment plan, the back taxes don’t accrue interest and the person’s home is safe from foreclosure. But if they miss a payment, penalties are assessed on the beginning amount of back taxes, regardless of how much had been paid.

At the end of 2010, there were 598 property owners on payment plans in Clark County.

“The way the economy is and everything is, people are using those.” Metzger said. “We certainly, all of us, work with our taxpayers.”

Like other treasurers, Metzger also allows people to set up an account to prepay their taxes so they have the money by tax time.

Clark delinquency rate higher than Greene, Champaign

Of the four counties reviewed, Greene County had the lowest delinquency rate: 3.94 percent in 2010. That means of the $219.7 million billed last year, all but nearly $8.7 million was paid by Nov. 30.

Clark County’s delinquency rate was 11.7 percent, which is higher than Champaign County’s 7.84 percent and comparably sized Greene’s, but is on par with much larger but fellow urban Montgomery County’s 12 percent.

All of these counties except Clark accept partial payments.

“I’m here to serve the public and if they’re willing to pay part of it, something is better than nothing,” said Champaign County Treasurer Kermit Russell. “If they’re making an effort, I’m trying to work with them.”

Metzger provided documents showing his delinquent tax collection has increased steadily from $4.8 million in 2006 to nearly $5.3 million in 2010, totaling $25.2 million over these five years.

“We’re managing our delinquency,” Metzger said.

There’s no way to determine if there’s a direct link between partial payments and delinquency, and even those who accept partial payments say the number of people who use them is small.

“Most of them make the full payment or make a payment plan,” said Russell.

Clark County collected $981,070 in late fees on property taxes in 2010, and $256,717 in interest.

Montgomery County collected $3.5 million in penalties and $964,000 in interest last year, according to officials there. Greene County collected $1.2 million in penalties and $206,425 in interest.

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Feb. 18: First half taxes due

Feb. 19-28: 5% penalty on the unpaid current half tax

March 1: 10% penalty on the unpaid current half tax

July 8: Second half taxes due

July 9-18: 5% penalty on the total unpaid 2010 real estate tax

July 19: 10% penalty on the total unpaid 2010 real estate tax

Aug. 1: 2.67% interest assessment on unpaid prior years delinquent real estate taxes

Dec. 1: 1.33% interest assessment on unpaid real estate taxes.

Source: Clark County Treasurer’s Office

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