Please do not ignore your local Tax Collector!

I am asked occasionally about what can happen to people who do not pay their Real Estate, Personal Property or Motor Vehicle taxes to the Town. Well in short, nothing good comes of it. The town will be sending you bills with interest of 1.5.% per month (18% annually) accruing back to the original due date. You will be charged rebilling fees. Interest is not waivable by state statute. You will have been notified three times of your tax liability (the original bill. Delinquency Notice and Final Demand Notice.) If you are not getting these, it is your responsibility, under state law, to call the Tax Office and inquire why you haven’t been getting your bills. If you still haven’t responded, the Tax Collector may issue an Alias Tax Warrant collectible by a Town Constable or State Marshal. Collection fees apply including a minimum of a 15 % collection fee on top of your bill. Your real estate will be liened (additional fee.) Eventually, your Real Estate may be foreclosed for payment. Please do not think your unpaid tax bill just disappears. The tax collector has 15 years to collect your outstanding taxes including fees and interest. You may be referred to a collection agency, and they also charge 15% on top of your bill. Banks, Mortgage Companies and their affiliates also ask for reports about delinquent payments, and they may report you to a credit agency affecting your credit scores and could put you in default of financing agreements. Motor vehicle supplemental and regular bills that are unpaid result in your having a hold put on all your vehicle transactions with the state DMV including renewals and new vehicle registrations.

Split billing – If your Town permits you to split your payments (usually for Real Estate and Personal Property) do not expect to be rebilled in January. The bill you received in June for your first payment on July One contains the second bill payment slip for your payment on January One. You will not be rebilled as you have already been billed and if you voluntarily choose to split your payment, it is your responsibility to make the second payment when due, without further billing from the tax office.

Businesses not paying their billed taxes can be closed and assets seized to guarantee payments are made. Individuals are advised not to put their personal residences into a limited liability company or other business model as the property tax collection protections built into law by the legislature for individuals, do not apply to businesses.

If a family member owns a vehicle and they pass on, it is incumbent on the family and estate fiduciary to remember to call the tax office as tax billing is done in arrears and therefore a tax liability has already been incurred on the vehicle. This should be done before selling, moving the vehicle out of state, transferring or donating a vehicle so the estimated taxes can be paid first by the estate or family if there are no other estate assets. Motor vehicles are considered assets of the estate. Family members taking ownership of a vehicle (meaning they do any of the aforementioned tasks) also have the tax liability if these are not paid by the estate. Again, taxes, just like car payments, do not just disappear. Someone will be held accountable for the accrued taxes.

Unpaid Town taxes will result in higher fees when paid and perhaps a State Marshal or Town Constable in your future. If you owe taxes to the Town, please pay now so this does not happen to you.

Thomas P Hurley Town of Orange Collector of Taxes