Binder’s Tax Payment Plan Long Overdue

by: Bill Liblick

With our economy heading towards a recession and property owners finding it difficult to make ends meet, Legislator Leni Binder is proposing legislation that would allow for installment payments and payment plans for current property taxes. At present, only after a taxpayer is in default with their taxes does the County accept installment payments a very high interest rate. The proposal which is similar to what is implemented in other counties is long over due.

Binder told me if a taxpayer can only pay half of their tax bill, the county cannot accept it. “The law, however, does not prohibit us from doing so, and in other counties it is, in fact, done this way.”

County treasurer Ira Cohen confirmed that at present a delinquent taxpayer has the option to save their property and pay their debt over 24 monthly payments.  He said he is working on a separate partial payment plan that would allow delinquent taxpayers to pay in increments of as little as $100.00, however his proposal is subject to software capabilities and either State approval or local law. 

When it comes to current taxes owed and installment plans, Cohen claims when towns close their books they send the unpaid taxes to the county for collection and enforcement.  Towns can institute installment plans, but he says they have no reason to do so, because if they are not made whole, then the county would have the obligation to make towns whole similar to unpaid school taxes.

Cohen is fearful that people who can afford to pay taxes might opt for an installment, and in return might place their township in financial jeopardy.

He told me “this would cause towns to have a cash shortage, and would force the county to layout money to make those towns whole. If a town property owner can’t pay his town tax in full, he will have the option to enter into an installment agreement at the county level, so he doesn’t have to do so at the town level.”

Legislator David Sager pointed out that a payment schedule would not be cheaper for taxpayers because there would be interest and penalties attached.

It is refreshing to hear an elected official state that as “a governing body, we (the legislature) must bend and adapt so that we can meet the immediate needs of our constituents.” Bravo, Mr.

Sager.

The freshman legislator also noted that Binder’s proposal was not a mandate for towns and villages. Although he did express hope that “other taxing jurisdictions will eventually look to join with us in a spirit of cooperation, flexibility and consolidation.  Now is not the time for rigidity in government.” 

Legislature Chairman Jonathan Rouis called Binder’s plan a “good idea” He agreed that with fuel oil and gasoline prices on the rise, it will be harder for folks to put away one large sum of money for their taxes, Rouis said, “This legislation advocates that our residents have the ability to break their payments up throughout the year, much the same way a mortgage escrow account works.”

Our legislators must take the advise of Cohen when structuring this legislation to insure that it is worded properly and not backfire on us. They must also meet with all town supervisors to discuss all the options they have.

Sullivan County should not be in the business of taking away property. We have one of the lowest median incomes in New York, while our state tax rate is amongst the highest in the nation. It is the obligation of our elected officials to find ways to assist their constituents in hard times and Binder’s legislation will work towards that end.

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