Sussex County to hire collections manager, pursue those with delinquent taxes

Georgetown, Del., Sept. 23, 2009: Each year, September marks the deadline for taxpayers to pay their property taxes to Sussex County and its eight school districts. Tens of thousands of people make the deadline and pay their taxes on time. Some, however, don’t.

Sussex County soon will be making a more concerted effort to track down those delinquent taxpayers and collect millions of dollars in back taxes and fees.

County Council, at its Tuesday, Sept. 22, 2009, meeting, approved a set of policy changes for collecting back taxes, which includes plans to hire a dedicated collections manager to pursue approximately $8.2 million in delinquent taxes and other fees on an estimated 9,482 accounts. Nearly $6 million in property taxes is owed to local school districts, with $900,000 in County property taxes and $1.4 million in County sewer and water fees due.

County officials said Sussex is simply stepping up its collection efforts, but will continue to work with those who are behind in their taxes and sewer and water fees. The County already offers payment plans to those who qualify.

“The County Council recognizes that, in many instances, household budgets are tight and people are hurting financially, particularly in the current economy,” County Council President Vance C. Phillips said. “But this is an issue of equal treatment for all. Sussex County has some of the lowest taxes in the country, and we must all pay our fair share.”

The County already works to collect back taxes and sewer and water payments by using letters, making telephone calls and placing liens on properties in which payment is overdue. Eventually, tax sales are held for properties in delinquency, an option officials said the County will use more often.

Over the years, the County’s collection efforts have been spread among several departments and done as time permitted, County Administrator David B. Baker said. But with Council’s action, the County will now have a full-time employee dedicated only to collections.

“By having one individual focused on collections, the County can more aggressively and consistently address this issue,” Mr. Baker said. The County, in the coming weeks, will look to fill the position with someone trained in collections and debt recovery.

Council also approved, as part of the policy changes, other steps the County will take to claim delinquent taxes. These would include sending an additional warning letter from the County Attorney to those in arrears, posting a list of delinquent accounts on the County’s Web site, and offering a 30-day amnesty on the County’s portion of penalties for those who step forward to settle their debt. The County has not yet set a date for such an amnesty.

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