Lisa Simpson
Nov 24,2009
In: Foreclosure

In the Aftermath of the Foreclosure Shirley Town Has no Other Option But to Collect Arrear Taxes

Shirley Town is poised to collect huge backlogs of arrear taxes – in the aftermath of the foreclosure crisis it has little other option. On 14th November a Special Town Meeting Warrant cleared $52,000 to finance the move. The Tax Collection Committee got the road clear for the measure.

The consequences of tax delinquency are clearly to be seen in a flow chart. The owners of properties undergo stress, suffer fear and are embarrassmed as the interest adds up with penalties while at the end of the road foreclosure threatens. For the town piled up taxes means restrictions in the flow of taxes that causes extra effort to be put forth, wasting time as well as funds to collect the same. Other services thus get neglected as this vicious circle engulfs all – the town and the townspeople.

On the other side if taxes are regularly paid the people can lead a stress free life in control of their finances while the town can go about its beneficial duties with cash flowing in.

The process begins with the part being played by the assessor. Becky Caldbeck the Principal Assessor said that the data is provided by them. The analysis of the value of property is based on previous year’s sale. But last year the market was sluggish and this means a call for more analysis as per the guidelines laid down by the Department of Revenue. She noted, “We had to look at two years to get fiscal 2010 values.” In the previous two years a mere 61 single-family houses had been sold.

In November the average property value estimated for Shirley is $290,242 – it showing a decrease in value of estates by $25 million since the previous year. Caldbeck explained that when the value drops the levy increases. Tax bills include many additions like betterments made for sewers and loan payments executed for the same. But some of the bills may be reduced. She added, “We provide available measures to defer or reduce your taxes.” This would be for mandated exemptions of veterans who were disabled. To avail of this they have to apply every year. There is also the Senior Tax Work-off plan that permits some seniors of the town to work for a stipulated number of hours for the town and in return get property tax adjusted.