• In Greene County, property tax delinquencies total more than $8.2 million.
• Miami County property owner have about $6 million in back taxes on the books.
• In Warren County, the figure is just under $20 million.
The Dayton Daily News examined property tax delinquencies around the region and what counties are doing to collect the taxes.
County treasurers — responsible for tax collection — encourage delinquent property owners to meet their obligations with installment payment plans, and Montgomery County has launched a new strategy giving some owners more time to pay their bills in hope of gathering the millions of dollars owed.
“Our biggest goal is to keep people in their homes,” Greene County Treasurer Richard Gould said. “I offer everyone a payment plan, at least once.”
Montgomery County Treasurer Carolyn Rice has changed the collections philosophy of her office. In the past, the focus was strictly on the delinquent amount, said Paul Robinson, Montgomery County’s deputy treasurer. But that didn’t fix the problem because the taxes still accrue.
The county will now consider expanding its two-year installment payment plan — based on a discussion with the property owner — to stretch payments over a longer period. Estimated future taxes also become part of the payment plan, Robinson said.
“Just getting people through the door is a victory, but we’ve had a 50 percent failure rate on those 24-month plans, Robinson said. “There was something in the plan that didn’t lead to success.”
Only about one-third of Montgomery County’s delinquent property owners are on payment plans. Robinson said he wants property owners to know they have options.
The treasurer’s office will develop a workable plan with them to stay current and pay off back taxes, including stretching some payments over 2.5 to three years, Robinson said.
“Obviously, we have to work within the property owner’s budget,” he said.
An analysis of property tax delinquencies over 10 years by the Montgomery County Treasurer’s Office revealed the best chance of collecting back taxes is within the first three years of delinquency.
“That emphasizes the need to go after newly delinquent property owners,” Robinson said.
Most single family homeowners want to pay their tax bills, Robinson said. It’s the limited liability companies that are a huge problem in Montgomery County.
“A typical LLC only has that (one) property as an asset,” Robinson said. “There is no other asset to seize.”
Treasurers in Greene, Miami and Warren counties offer plans that let property owners pay off delinquent taxes over 2.5 years in five installments.
Greene County Auditor David Graham said the county will bill $239,544,248 in property taxes for tax year 2012, for collection in 2013. Total unpaid delinquent taxes currently include about $519,254 in special assessments and $7.7 million in real estate taxes.
Whether it be out of fear, lack of funds or avoidance, many delinquent property owners don’t make that first step to settle their tax bills until they have to, Gould said.
“Unfortunately, what gets their attention is the delinquency tax letters we send out in September,” Gould said. “When people get a letter saying we’re going to foreclose, they come in and talk to us.”
David Swigert, Warren County’s chief deputy treasurer, said his office also offers a monthly payment option, in addition to the semi-annual one.
“That breaks down payments into smaller chunks,” he said. “There is no installment due the month ‘current taxes’ are due.”
In Miami County, installment payments are due in February and July, when current taxes are due, Treasurer Jim Stubbs said.
When efforts to contact delinquent property owners fail, Montgomery County takes an additional step. The treasurer’s office has held two tax lien sales this year, to bump up collections.
In a tax lien sale, county treasurers sell past-due taxes to a third party. The advantage for local governments and schools is that they don’t have to wait for the property owners to pay their tax bills to get the revenue. The disadvantage for the property owner is additional interest is added to their tax bills.
At sales held on June 13 and November 27, Montgomery County Treasurer’s Office sold a total of 651 tax liens valued at $4.6 million. The greater yield came from property owners agreeing to payment plans or paying off their taxes to avoid inclusion in the tax lien sale. Altogether, the two sales generated $27.5 million in tax payments.
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