EDITORIAL

Tax sale should be last resort

Posted 11/27/14

It seems absurd that homeowners could lose their property over their failure to pay their water or sewer fees, but that’s still a real possibility for about 500 homeowners who are listed in next …

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EDITORIAL

Tax sale should be last resort

Posted

It seems absurd that homeowners could lose their property over their failure to pay their water or sewer fees, but that’s still a real possibility for about 500 homeowners who are listed in next Friday, Dec. 5’s tax sale.

That list started off with 2,500 properties and was whittled down to less than 900 after it was published in the Nov. 13 edition of the Warwick Beacon and prompted property owners to pay up or make arrangements for a payment plan. People in arrears can still make arrangements to be removed from the sale with a deposit of 20 percent of the bill and 25 percent of the assessment payment. They can do that by visiting the Tax Collector’s office in the City Hall Annex by Thursday, Dec. 4.

Understandably, utility bills and assessments, which fund the installation of sewers, have to be paid. When they aren’t, those who conscientiously pay their bills end up carrying that burden.

But there are better ways to get people to pay their bills than putting their properties up for sale. A tax sale is a long and costly procedure that should be used only after other methods of collection have failed and reserved for only the most recalcitrant property owners.

Many of those initially listed for the tax sale are single-property owners, but there were a considerable number of multi-property owners as well. Their names didn’t appear in the Beacon because they paid up before the deadline for the legal ad.

What this indicates is that there are people who understand the system and game it to their fullest advantage. Delaying payments, even with interest costs, is usually less costly than borrowing the money and is considered sharp business practice by some.

But there is another group of property owners who are juggling expenses just to stay afloat. These have been tough times and, when it comes to making choices between food and medicine or the city utility bill, it’s understandable that the sewer and water bills go to the bottom of the pile. If that’s the choice, quarter after quarter, it’s understandable how the outstanding balance goes beyond resources.

Other utilities – electric, gas, cable and telephone – don’t usually put the properties of delinquents up for sale. They just get shut off. In many cases the threat of a shutoff prompts payment or payment plans. Other municipalities use the shutoff before the drastic measure of a tax sale. Warwick should do the same. Shutting off a homeowner’s water may seem insensitive, but we would view it differently. Such action before the bill is unmanageable would put people on a payment plan, avoid the expense of a tax sale and discourage those real estate speculators who purposely game the system.

A shutoff should be the tool the city uses to ensure all are doing their fair share.

Comments

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  • warwick10

    What if... most importantly ---pay housing first, any related expenses attached to your home. Home is first.

    Friday, November 28, 2014 Report this

  • Pmaloneyjr

    Will Councilwoman Travis be willing to give everyone who is in a situation to owe taxes the ability to pay over a period of time as she was allowed rather than going to a tax sale? She is looking to be Council President again. The person who voted to raise taxes every year she was in office didn't feel the need to pay her own taxes and was given a payment plan. I suggest people attend the council meeting when they vote for a city council president and let your thoughts be known.

    Will the Council chambers fit 500 Tax owing residents? I hope so. This story is from Jan 2014.

    http://www.abc6.com/story/24485689/warwick-city-council-president-behind-on-paying-her-taxes

    Wednesday, December 3, 2014 Report this