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Tax collections down; county reaching out to delinquent taxpayers

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By Anthony Gottschlich, Staff Writer Updated 10:31 PM Sunday, December 27, 2009

DAYTON — Montgomery County is collecting more property tax dollars than ever, but the collection rate is at its lowest in five years, thanks to a sour economy and the foreclosure crisis, according to the county treasurer’s office.

The county collected $707.8 million this year on $754.4 million in real estate taxes owed, records show. That’s nearly $30 million more than was collected last year, but at a collection rate of just 93.8 percent — 1.1 percent less than last year and 4.4 percent less than a high of 98.2 percent in 2006.

“It could have been worse,” said County Treasurer Carolyn Rice, but her office is working hard nonetheless to reach delinquent taxpayers through radio ads, mailings and phone calls and by working with community agencies and the U.S. Bankruptcy Court.

She said she’s especially concerned about first-timers who may not understand the options available for struggling residents.

“If they’ve never been in this situation before, they tend to be very fearful of it, so they avoid it, thinking it’s going to be horrible, it’s going to be a terrible experience, and we’re going to be awful people to work with,” Rice said. “So rather than do anything, they do nothing and hope it gets better, which is the worst thing to do.”

Doing nothing can mean penalties and interest, possible liens on your property and even foreclosure, she said.

The falling collection rate means each taxing jurisdiction in the county — such as libraries, the human services levy and school districts — suffers, Rice said. But some are hit especially hard.

In Dayton, ground zero for the foreclosure crisis, the city school district this year received just 87 percent of the real estate taxes it was owed for the 2008 tax year, according to the county auditor’s office. Same for Trotwood-Madison schools.

“We’re in the process of building next year’s budget, and what we’re really anxious about is the January (tax) collection,” said Stan Lucas, treasurer for Dayton schools. “If we see improvement there, it will help us stabilize our budget. If collections don’t improve, we will be faced with some budget cuts.”

Suburban districts seem less affected. In Centerville, for example, the school district received 98.5 percent of the taxes levied, records show. Huber Heights schools received 97.3 percent, and Kettering schools, nearly 97 percent.

Help available

Rice worries that delinquent property owners will find themselves deeper in the hole come January, when the first-half tax bill for 2009 arrives. Her office has payment plans that can help, she said.

The delinquency payment plan normally comprises 20 monthly payments. A down payment is required, and current taxes must be paid while on the plan. Hardships will be considered on a case-by-case basis, Rice said, and her office will try to connect people to local agencies that might be able to help.

“Our message is come in, tell us what’s going on, we’re very reasonable and compassionate people,” she said. “It’s in your interest, it’s in our interest ... it’s in everyone’s interest to come in and work with us.”

The treasurer’s office also offers a prepayment, monthly level billing installment plan for current taxes due. Property owners can choose automatic withdrawal from a bank account or monthly billing.

Rice said nearly 12,000 property owners are on a prepayment plan.

For more information, call (937) 225-4010, option 4 for the prepayment plan or option 2 for the delinquency department.

Contact this reporter at  (937) 225-7408 or agottschlich @DaytonDailyNews.com.

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