Archive for the ‘Tax Collections Falling Short’ Category

Here we go…Massachusetts State Department Revenue data shows 158 communities posted tax collection rates of 97 percent or worse - with some Berkshire towns collecting as little as 70 to 72 percent of their tax levy. Statewide, the fiscal 2008 local collection rate was within DOR goals: 1.9 percent of the $10.9 billion real estate and property tax levy went uncollected.

Officials said the bad economy is making tax collection more difficult. Local aid was slashed by $724 million last year and could be cut again by about $200 million in next year’s state budget.

“Increasing the rate of collections will just help on the margins,” said Michael J. Widmer, president of the Massachusetts Taxpayers Foundation. “Even if they change their collection rate, it does not change the fundamental reality that they rely so heavily on local aid.”

The city reporting the lowest collection rate was Springfield at 95 percent, DOR figures show.

Because of new credit card company (Visa, MasterCard & AMEX) rules, Massachusetts municipalities can accept credit card, debit card, echeck and other types of payment (e.g. BillMeLater) for tax payments in their offices (IN-PERSON) and in their offices (OVER THE PHONE & IN THE MAIL) and have the fee assessed back to the citizen that chooses to use their card or other method of payment.

This means these municipalities can accept these forms of payment at no charge to them. This could substantially increase the collection rate for all MA municipalities.

This is also happening in:

New Jersey

San Diego

Clark County/Las Vegas

Kansas

Jim