TAX COLLECTION REVIEW COMMITTEE #14 Mayor Bingham explained that in response to complaints about the jeopardy tax system, he reviewed state statutes, did a comparison to other municipalities, met with the Tax Collector, and considered ways to compromise and solve this issue. He concluded that a joint presentation and vote from both City Council and the Board of Finance is necessary to change or amend the Tax Collector's contract. He presented a resolution to both boards calling for the creation of a Tax Collector Review Committee, which would review and make recommendations on the collection of jeopardy
tax. It is aimed towards those who are not delinquent, not closing their doors, plan on staying here and are financially whole. It doesn't negate taxes owed and does not hinder the Tax Collector to collect what he is owed.
Councilor Colangelo asked about liability for taxes that aren't reimbursed. Mayor Bingham said taxpayers will be given an opportunity to prove to the review committee that they are financially whole and not in danger of closing. The Committee will review this information and make recommendations to the City for taking that risk on a case by case basis.
Councilor Jerram summarized by saying taxes could be collected in advance and it's up to the committee to review each case presented, then the Tax Collector would reimburse the taxpayer and the City would be on the hook. If the Tax Review Committee were able to get the task done before tax was collected, the process would be stopped at that point and the Tax Collector would not be liable for those taxes.
Councilor Soliani said she would be against doing the Tax Collector's job, and that people should be treated differently.
Councilor Dalla Valle asked if there would be any benefits to taking on this liability, such as interest. Mayor Bingham explained there are no penalties associated with collecting next year's taxes.
Dr. Crovo said the City would still need him to collect the money under City direction, and therefore would still deserve a percentage.
Councilor Carbone said they were talking about services they are not prepared to provide. She asked who the Tax Review Committee would answer to. She foresees this as becoming problematic.
Councilor Colangelo agreed that it is a very slippery slope. He requested an explanation in writing of how jeopardy tax collection is applied, and does not want to add another layer of bureaucracy over this.
Dr. Crovo replied that he collects jeopardy taxes equally across the board.
Mayor Bingham said the heart of the issue isn't those who are delinquent. It is those businesses who, in tough economic times, are having trouble being liquid enough to pay their taxes and on top of everything else have to pay next year's taxes. This could be a catalyst to them closing. Mayor Bingham said the compromise put on the table is that they take the initiative to prove to us that they are financially able to pay next year's taxes.
Councilor Soliani suggested taxpayers could talk to the Tax Collector, not to the Council.
Dr. Crovo said that most often when jeopardy tax collection statute is used, the payment is received and the jeopardy goes away.
Councilor Dalla Valle asked about the tactic of threatening to close a business.
Dr. Crovo replied it is only used in cases of chronic delinquency. He found that using a Constable only adds another layer of fees, so going to businesses himself eliminates those fees. He urged the boards to understand the task – that there can be as many as 524 delinquent taxpayers.
Mayor Bingham said we owe it the residents of Torrington to give them an opportunity for additional review.
Mr. Zeller asked what the current practice is for a property owner/taxpayer to have some sort of redress in this process. Atty. Weaver replied there currently is no redress statutorily given.
Mr. Zeller asked how the committee would determine what their solvency is vs. what the Tax Collector is doing.
Mrs. Traub agreed that this is the Tax Collector's job and is not comfortable with the City taking over even a small portion of tax collection.
Mrs. Pesce said this is not the way to run a public meeting, she is opposed to last minute information being handed to her at the meeting, opposed to sidebar conversations and would vote to table this option
Councilor Dalla Valle said our obligations are to the citizens of Torrington -- we need to find something that's going to work.
Councilor Carbone said we'd be better served to look at the process by which notice of jeopardy tax is imposed. She suggested that instead of heavy-handed intimidation, the problem could perhaps be solved by a defined process that we expect the Tax Collector to follow.
Councilor Soliani pointed out the Tax Collector doesn't answer to City Council.
Dr. Crovo said he is willing to map out what he's going to do and will take two Councilors' and two Board of Finance Members' recommendations on it.
Councilor Carbone said she wouldn't want to enter into a contract on behalf of the City with anyone who enters a business and makes threatening comments about closing it. She would strongly recommend that be cleaned up.
Councilor Colangelo agreed and suggested a log be kept to keep track of every incident to evaluate the Tax Collector when the time comes to renew his contract.
|
