COLLECTING BACK TAXES WOULD MAKE MONEY PICTURE EVEN BETTER, MANAGER SAYS

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, January 17, 1992                   TAG: 9201170260
SECTION: CURRENT                    PAGE: NRV-2   EDITION: NEW RIVER VALLEY 
SOURCE: PAUL DELLINGER
DATELINE: PULASKI                                  LENGTH: Medium
COLLECTING BACK TAXES WOULD MAKE MONEY PICTURE EVEN BETTER, MANAGER SAYS
Pulaski Town Council got some good financial news Thursday and considered steps to make it even better.
Those steps would be measures to collect delinquent taxes from at least the past five years, amounting to about $135,000.
In his report for the first half of the fiscal year through December, Town Manager Don Holycross told council members that the town's three major funds are in better shape now than at this time last year.
The general fund, which has fluctuated from $381,000 in July to $97,137 in the red in September, now is $355,672 in the black.
Total revenue so far is slightly more than $2 million, half of the current budget, which is where it should be halfway through the fiscal year.
"So overall our revenue picture is at least remaining steady," Holycross said. "Basically, it means that more people paid [taxes] on time."
General fund expenses are running about the same, and slightly better than last year, with nearly half spent.
The water fund revenue is slightly ahead of its budget, while expenses are only 36 percent of the budget, compared to 45 percent a year ago.
The sewer fund was about the same.
Councilman Nick Glenn was so happy that he suggested that Holycross issue a news release on the financial report.
Council also looked at options for going after unpaid taxes from previous years.
Legally, the town could go back 20 years on unpaid real estate taxes. Practically, Holycross said, he recommended focusing on the past five years except for taxpayers with unbroken years of unpaid taxes going back further than that.
Town Attorney Frank Terwilliger outlined approaches that the town could take:

The town can submit its lists of unpaid taxes to the state, which would hold tax refunds, lottery winnings or other money that would otherwise have come to the taxpayers. It would take a lot of clerical work to set up the procedure but, once established, it would become routine.

Tax lien notices can be sent from the town treasurer to banks, employers or others owing money to taxpayers and the unpaid taxes can be withheld. Unpaid taxes could be taken directly from bank accounts.

Personal property, including cars, could be seized, but such property must be stored and sale expenses can eat up profits.

The treasurer or attorney can file a suit and garnishments will be issued.

Real estate tax enforcement can be carried out by sale of property, but only in cases where tax payments have been delinquent for at least three years.
Council was reluctant about hiring a collection agency. C. Donald Crispin said this should be done only as a last resort. He said the planned step of publishing the names of delinquent taxpayers probably would do more good.
However it is carried out, the collection is likely to require more staff. The tax payment records put on the town computer so far "had to be all gathered by hand," Holycross said. "I don't see how the existing staff can do it and do it effectively."

by Archana Subramaniam by CNB