Milford Tax Penalty Forgiveness Program

c1On April 25, 2016 the City Council authorized a Tax Penalty Forgiveness Program to be offered to those property tax payers with delinquent taxes, liens and fees that forgives past penalties and interest currently owed in exchange for making full payment by June 30, 2016.

As of mid-April, the City of Milford was owed more than $467,000 in unpaid property taxes and miscellaneous receivables (e.g. grass cutting bill or code compliance penalties) dating back to 1995. Associated with those unpaid taxes and fees is nearly $125,000 in penalties and interest. City staff developed the one-time Tax Penalty Forgiveness Program to forgive the penalties and interest on the taxes and fees that are paid by June30, 2016. FailuretoactbyJune30,2016 will result in a missed opportunity to pay only the base taxes and fees to satisfy City of Milford obligations in exchange for a waiver of interest and penalties.

The program will assist those in arrears to come current on amounts due. Per the Charter, the City plans to begin pursuing court action for those properties that are in arrears for multiple years after July 1. By implementing the Property Tax Penalty Forgiveness Program, the City gives property owners an opportunity come current before the City pursues more drastic actions. The program consists of the following provisions:

Tax Penalty Forgiveness Program Key provisions and conditions of the Property Tax Penalty Forgiveness Program:

1. There will be no refunds for payments made prior to the Forgiveness Program approval. Penalties are being waived during the specified Program period for those who bring their account current by paying in full the taxes, liens and other code violation fees.

2. Penalties are being waived for payments made or postmarked by June 30, 2016.

3. This is a one-time opportunity that will likely not be offered again. Such a program has not

been offered in recent memory and due to the sizable amount of back taxes, it is recommended that this be a one-time offer to help the citizens get current so that they do not find their property subject to legal action to collect the debts.

4. What if a property owner has multiple properties in arrears? Such a property owner can pay off an individual property in full, taking advantage of having the penalties waived, while still having other properties remain delinquent.

5. Partial Payments: (Example: “If I owe for five years of taxes, can I pay in full the three oldest years with no penalty on those years?”) The Program is designed to bring the entire account current and start fresh with the new tax year, thus no partial payments are allowed.

6. Payment Plans: (Example: If I am unable to pay my taxes in full will the City work out a payment plan with me?) Depending on the situation the City may be able to work out a payment plan agreement, after researching the history. If a plan is agreed upon and signed off by both parties, the penalties and interest will be held in abeyance for the duration of the payment plan. If the property owner completes the payment plan on schedule, the penalties and interest will be waived. Failure to make any payment by due dates will result in all remaining amounts owed (including prior penalties and interest) being due immediately, plus any new penalties and interest. Such an agreement will need to be negotiated and agreed to prior to June 30, 2016. (Accordingly, persons interested in negotiating such a program must apply by June 20, 2016.)

The program is effective through June 30, 2016. The City of Milford hopes that this program will assist folks in remaining current with future billings. Delinquent bills will be sent by the end of the first week of May.

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