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Counties, residents wrestle with tax delinquency rates
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WASHINGTON (Map, News) - More local residents are losing their cars, being harassed by collection agencies and facing the loss of their homes as tax delinquency rates across the region go through the roof.
Today in Montgomery County, officials will sell to private collection firms the right to collect the tax debts residents and business owners owe the government. About $5 million in taxpayer debt will be sold to the highest bidder, up from $3.6 million in 2007. Officials expect the number to decrease slightly, as some people paid up last week.
The sale serves to outsource counties’ collections, just like the one that was held in Prince George’s last month. There, more than $14 million was up for sale, up from about $10 million in 2007.
“It’s much easier and better if everyone just pays their taxes on time,” said Rob Hagedoorn, Montgomery’s treasury chief. “The sale is a last-ditch effort provided by state law.”
Hagedoorn said the number of delinquent properties did not increase at the same rate. That may mean people have missed both of their semiannual property tax payments, where in years past they only got six months behind.
Bowie resident Kym Kent and her husband owe more than $9,000 for several back payments on a parcel of land they own in Silver Spring.
“It’s the economy, that’s the biggest thing for us,” Kent said, explaining her husband builds churches for a living and lately has not been getting paid on time.
“That’s the situation, and we’ll wait. Hopefully, we’ll have some paid back soon.”
In Virginia, where state law does not allow for the sale of debt, delinquents are more likely to find wages garnished or bank accounts tapped at the hands of the local government.
“We are not nice people, and you can quote me on that,” said Frank O’Leary, Arlington County’s elected treasurer for more than 25 years. O’Leary’s department has seized about 1,400 cars in the past four years to shake money out of local debtors, a more aggressive tactic than most counties have employed.
Even so, at nearly $1.7 million expected by the end of June, O’Leary is dealing with more debt than in recent years, up from about $1.4 million for the years between 2004 and 2006.
In neighboring — and much larger — Fairfax County, nearly $8 million is currently owed, up more than $1 million from 2004. Though nearly all of the money comes in at some point in the future, collections chief Scott Sizemore said the current economic climate is no time for county governments to come up short.
“If you project taking in Y amount of dollars and you only receive X, it doesn’t matter if the money is from this year or last,” he said. “You don’t have it.”
lfabel@dcexaminer.com
Comments from Examiner Readers
8:22 PM MST on Tue., Apr. 15, 2008 re: "Post offices stay open late for tax procrastinators"
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5:30 PM MST on Tue., Apr. 15, 2008
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4:39 AM MST on Mon., Mar. 31, 2008
re: "Tax pros: Don’t forget deductions for education, savings, contributions"
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5:22 AM MST on Tue., Oct. 30, 2007
re: "‘No new taxes:’ Md. groups rally against O’Malley’s tax hike plan"
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5:14 AM MST on Tue., Oct. 30, 2007
re: "Republicans say poll a sneaky way to increase taxes"
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4:42 AM MST on Tue., Oct. 30, 2007
re: "‘No new taxes:’ Md. groups rally against O’Malley’s tax hike plan"
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4:12 AM MST on Tue., Oct. 30, 2007
re: "‘No new taxes:’ Md. groups rally against O’Malley’s tax hike plan"
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4:06 AM MST on Tue., Oct. 30, 2007
re: "‘No new taxes:’ Md. groups rally against O’Malley’s tax hike plan"
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12:24 PM MST on Tue., Aug. 7, 2007
re: "Republicans say poll a sneaky way to increase taxes"
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4:40 PM MST on Fri., Aug. 3, 2007
re: "Republicans say poll a sneaky way to increase taxes"
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2:28 PM MST on Fri., Aug. 3, 2007
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10:43 AM MST on Mon., Jun. 18, 2007
re: "Thousands of city properties on the market in tax auction"
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Examiner Reader said:
What post offices are open today later than 7:30 p.m.?
5 agree | 6 disagree
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Gizmo said:
It's pay day in the congress and Ted Kennedy is waiting for my check, it's his turn to buy a round at the Senate Bar.
5 agree | 6 disagree
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Examiner Reader said:
This article should have been written in January... Better late than never...
4 agree | 5 disagree
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Martin O'Malley said:
Stop criticizing me, you'd do the same thing if you were in my position. I'm the governor, I have the right to have more power and control over money. And the best way to do that is take it from the rich. They have the most of it, and besides, they don't protest and complain because they're too busy working.
156 agree | 149 disagree
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Examiner Reader said:
The poll was done by "Alliance for Tax Fairness, a coalition of liberal advocacy groups". I'm sure that wasn't biased at all... What really cracks me up are these far left groups that throw "Progressive" in their title. Progressive to who/what, other than your socialist agenda? Is huge government "progress"? I don't think so, anyway.
149 agree | 148 disagree
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reader said:
I think the politicians should stand and say to O'Malley, make the cuts and see where that lying, sack of crap will lay the blame then. Oh I forgot he can always blame Bob Ehrlich, even for the BGE lies he told us.
154 agree | 162 disagree
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VJC College Republican said:
If Thomas Jefferson thought taxation without representation was bad, he should see it with representation!
166 agree | 168 disagree
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Examiner Reader said:
Thanks Baltimore City and Prince Georges county for electing this tax and spend Democtat. You deserve all the taxes this wimp can impose
197 agree | 160 disagree
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Sven said:
Makes no never mind. O'Malley has got them where he wants them. Don't give him his tax increases and he will cut the funds to your county, teachers retirement, green programs and anything else to blackmail the legislators. M.O. WINS!
178 agree | 185 disagree
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Examiner Reader said:
Tax fairness” lol. How is it fair the I might be taxed more just because I happen to be successful? Am I using more State resources then someone who is less successful? I've got two kids in college but I don't qualify for any state aid on tuition because I've committed a sin against liberal sensibilities by making to much money. A lower income citizens kid gets the State tuition aid my kids are denied how’s that for fair. The 4% state tax on a $200,000 salary equates to a bigger contribution to the state coffers the 4% with held from a $35,000 salary so don't talk to me about fair taxation.
221 agree | 209 disagree
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Examiner Reader said:
Simple solutions to taxes, No Taxes except on purchases.... The rich would then pay and the poor would save. No employment tax!!
210 agree | 191 disagree
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Examiner Reader said:
Why is it that the folks who conduct these polls never speak with anybody I know?
206 agree | 184 disagree
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Examiner Reader said:
I've searched everywhere for the list, including the Times for the list of properties. It has not yet made it to the OTR website. Anyone know where you can find this other than the original newspaper ad?
263 agree | 225 disagree
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