What happens when you don't pay that property tax

n a move that has historically proved controversial in Williamstown (Vermont), board members this week authorized Town Manager Garrett Earls to take the town's most delinquent property owners to tax sale. Based on the board's vote the tax sales will be scheduled 10 at a time in 90-day intervals starting on Sept. 1. The board's goal is to whittle away at a delinquent tax figure that Earls said was hovering around $315,000 at the end of last month. According to Earls, the town has agreements with some property owners to pay more than $80,000 of that figure, but the balance remains uncollected and – to date – uncollectible.

The mere threat of tax sales – something that hasn't happened in Williamstown in several years – could change that by prompting tardy taxpayers to enter agreements to pay delinquencies, which in some cases are years old.

The alternative involves picking up legal fees involved with the tax sale in addition to the 8 percent penalties and accumulating interest of 1 percent per month associated with having missed the tax deadline in the first place. That money would be owed to the town in one non-negotiable lump-sum payment within one year of the time the property is brought to tax sale. That could prove far more challenging for some than entering into a repayment agreement under a newly adopted policy that essentially allows for any past-due taxes, penalties and interest to be paid off incrementally over a span of 18 months while requiring property owners to pay future tax bills on a timely basis.

This week Earls presented the board with seven delinquent accounts totaling nearly $57,000 that could be considered for tax sale. After reviewing that list board members instructed Earls to bring back a batch of 10 – focusing on the oldest delinquencies without regard to the amount owed. They suggested that process be repeated every 90 days until the delinquent amount is brought down to a more manageable level.

Their tax billing software will have a debt management module that will enable such properties to be identified and flagged automatically.