Delinquent taxes have become a big problem over the past few years in East Hartford. And now the town is cracking down.
According to city records, there are more than $3.6 million in delinquent taxes. The town has several tax collection professionals like constables but some bills go back years and are difficult to track down. For that reason, the town has hired TaxServ to collect delinquent taxes.
“We’re not sure it’s going to work but any revenue we can bring into the town of East Hartford for past taxes due will be a benefit for our taxpayers" said Mayor Marcia Leclerc, a Democrat.
The town has a budget of more than $170 million, but she says any collection of past due taxes could be a help.
Taxpayers are the ones who would pay for the collection. Any late payment comes with a 18% fee imposed by the town. TaxServ would tack on an additional 15% fee on any unpaid bill.
TaxServ will target delinquent motor vehicle, property, and "orphan property" taxpayers."
For example, if someone owes $100, the town would add $18 as its own fee, imposing an 18% penalty. If TaxServ collects a debt, the amount it would be tasked to collect would be $118 but the amount would increase to $135, and TaxServ would make money on that additional penalty totally $17.70.
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Mayor Leclerc says the percentage of delinquent taxpayers is low but the sums of money add up.
“Presently, two percent of those that are in violation of paying their taxes is being borne on the backs of those 98% that are paying their taxes.”
