HomeMy WebLinkAbout1994-09-26 94-415 ORDERDate 9-29-M lure Item No. 94-415
lmm/ ubiect s rattnxisation to Bsleblish a Tax Club
Responsible Department: Pioganxc DepGitowrn.
Commentary:
This ar'i.n will auWxfas tic ent� of a ron-interest paying tax
Club fox tits payent of paupe ty tastes on a scantily lasisr aM edLLch will
auTlm'iee tic Tear Collect= to not collect interest due if t teres of
th s Tax Club %greenagnt am abided and final payment of tLe u n; anm.at tax
installment far received by ties City within Z days of the doe date. 'brie
Sten care fxaa a citixmt Bvalwttcn C®twitt cam.
wgrzarenxme
Manager's Comments:
Awar—cin a.es...
Associated Informetipn:
C%xksr'r, rninnwtioo 7>hYt
Budget Approval: W
Fi ae Direct
Legal Approval:
ciN suo,
Introduced For
o7age
❑ [Reading Page_of
ferral3a y�
94-415
Aeeigned to ncJur Shubert September 26, 1994
CITY OF BANGOR
(TITLE.) tlTM-_....'a Tax vlvb
...._. _..
By 44 acy Cauruil Of W City OfAllwor.
ORDERED, - -
TWT
FaIDU'AS, the City of Perm rr seta two tax trot dates for payment of
property bases; towel
4frIDf Very baxPal is M rot have mortgage ex -mw xrAimts available
for spreddL g out the annual cost of property tapsa, and for
payment of tla tax. bills vden leered: mwe,
F➢ffiRaA4, taxpayers who are xespmisfble for the direct payment of theL
property tines ]ave regua;tei a me bar i to allow for mmrthly
payments of heir tax rbligatiaa to the City of eanpr;
non-LtGrest paying Tax Ciub fs t ty established to ai
for the >varethly payment of tax Grligntiva to ite City of
Ba ; towef
ff tmpeyass ]oln the Tax Club mid abide by its rules arel the
Tex Club Agreement, that any interest Are will le rained if the
semltxnnu�t tax vatallnett is receieed within LS days of flee
m» date.
IN CITY CMNCIL
September 26, 1994
First Reading
Referred to Finance Cour ittee
C
ttL. ITY CLCRR
In City Council Octoberl2, 1994.
Passed
94-415
OR D I R
Title, Authorization to Establish a Tax Club '
Ae®gned to
Councilman
94-415
CITY OF BANGOR
TAX CLUB
INFORMATION SHEET AND RBLBS
The City of Bangor Tax Club Is established to allow taxpayers who do
not have tax escrow accounts through their mortgage holders or
others, the opportunity to make monthly tax payments instead of the
two semiannual tax payments. The intention is to set monthly payment
amounts which will allow for the pay of each semiannual tax
installment by its due date.
The rules which govern the operation of the Tax Club are set out
below. Use of the Tax Club will allow the taxpayer to pay their
taxes on time
sof the tax installment due dates. The City of
Bangor will not charge interest if there Is a deficiency on the
September tax installment provided that the Tax Club Agreement has
been met and the September installment is made by September 30. The
same is true for the March tax installment provide it is paid by
March 31 and the monthly payments under the agreement are made.
Finally, the Tax Club is for payment of prospective tax
installments. All taxes due for the current tax year must be paid
and there must be no outstanding tax liens on the property at the
time of the Tax Club Agreement. The Tax Club period will run from
April through the following March.
Monthly payments amounts for April through September will be based on
the prior year's tax assessment. For those who enter an agreement
after April, the monthly payments amounts through September will be
established to allow for the payment in full of the September
installment by its due date. On all cases, the monthly payments for
October through March will be recalculated based on the remaining
September balance.
Tax Club Rules,
1. At the time of the Tax Club Agreement, the tax account must be
fully up to date with no outstanding tax liens, or unpaid taxes
for the property.
2. The taxpayer must certify that there is no tax escrow account for
the payment of the real estate taxes either through a mortgage
holder or its agent, or other escrow agent.
3. Payments are to be received monthly on or before the 15th of each
month. The tax payment is demand received as of the postmark on
the envelope.
4. The agreement will be in default it the semiannual tax
Installments are not received within 15 days of their due date.
5. The Tax Club agreement will run from April preceding the tax
commitment date though the following March 31.
94-415
14. The City of Bangor reserves all rights and duties of tax
collections as provided by statute.
W7TAXCLUB
9/26/94
94-415
6. Tax Club payments for the period of April through September will
be computed by dividing 12 into the amount of the prior tax
assessment for the tax account property. Where there is no prior
tax assessment for the property, the April through September
monthly payments will be estimated based upon the Assessor's
current valuation times the prior mill rate, or such other base
amount as the tax Collector and taxpayer agree upon.
). Tax Club payments for the period of October through March will be
computed by subtracting the value of payments made from the
current tax assessment and dividing the balance by 6 or a factor
thereof.
B. If a taxpayer applies for Tax Club statue later than April, the
payment through September will be based upon 1/2 of the prior
year's assessment divided by the number of monthly payments to be
made through September 15 or a factor thereof.
S. The Tax Club Agreement will be deemed completed upon final
payment of the taxes due, or a default on the taxes due in which
case the City of Bangor may collect interest on the unpaid
balance in conformance with the Assessor's warrant and the
appropriation resolve.
10. During the term of the Tax Club Agreement, the City of Bangor
will not collect interest on any payment made within the terms of
the agreement. Also, the taxpayer agrees that the City of Bangor
will not pay interest on the payments made prior to the tax
installment due date.
11. Should a tax payer choose to continue to participate in the Tax
Club in the subsequent year, the monthly payments for the period
April through September may be computed an noted in %6 above, or
the tax payer may elect to continue paying the amount computed
for the prior October through March period, if the continuing
payment is more than the amount computed i !tax t6. In either
case, the payment amount for the subsequent October through march
period will be recalculated as noted in item 47.
12. Should a taxpayer receive a tax abatement, the abatement amount
will first be applied to the tax balance remaining, and the
monthly payments adjusted to collect only the remaining balance.
If the abatement pays the account in full and there is no balance
due the Tax Club agreement will be satisfied. If the abatement
leaves an over payment, the taxpayer will be refunded the excess
payment amount unless the taxpayer elects to have the amount
applied towards the Tax Club Agreement for the subsequent tax
year.
13. Once a monthly payment under the Tax Club Agreement has been
made, the amount &hall not be refunded to the taxpayer even if
the payment was made prior to the actual tax due date for either
the first or second tax installment.
94-415
CITY OF BANGOR
TAX CLUB APPLICATION AND AGREEMENT
Dates
Tax Account Number:
Property location:
Name of taxpayer/property owner:
Mailing address:
I (we) certify that:
a. i (we) am (are) the owner(s) of the property noted above,
b. there am no outstanding tax liens or unpaid real estate taxes
for the property, -
C. there is no tax escrow being held by the mortgage holder or its
agent, or by any other escrow agent for payment of the real
estate taxes for this property,
d. I (we) would like to participate in the City of Bangor's Tax Club
for monthly payment of the real estate taxes for this property,
e. I (we) have read and understand the conditions which govern and
shall be included as a part of this tax club agreement.
I agree to participate in the City of Bangor Tax Club Program and to
make payments of $ for the period , 199 through
September, 199_, and to contact the City of Bangor Tax Collector for
a recalculation of the monthly amount due for the October 199
through March 199_ period. i (we) further agree that it Is my (our)
responsibility to make the payments due on or before the 15th of each
month, and that the City of Bangor is rot responsible for reminder
notices or other written or verbal contacts concerning the payments
due.
/Date
Property Owner
/Date
Property Owner
Accepted by the City of Bangor
Tax Collector
94-415
I. Computation of the April through September installments:
Number of monthly payments between April 1 or application date and
September 15
Tax assessment for prior tax year: $
Monthly payment April through September (tax assessment % factor):
Total Monthly Factor
Payments
6 .0834
5 .1000
4 .1250
3 .166]
Monthly installment due $
Computed by: /Date
Verified by: /Date
II. The monthly payment for the period October through March will be
computed after payment of the September installment:
Number of monthly payments between October 15 and March 15 6
Balance remaining on current tax assessment: $
Monthly payment October through March (balance current tax assessment
Y .0834): $
Computed by:
Verified by:
W7; TAXUUB
9/26/94