Foreclosures and unemployment increasing delinquency in tax payments

Foreclosures and unemployment causing loss of shelter and jobs are the prime reasons for causing many to become delinquent in matters of tax payments. In Connecticut many owners of residences and business concerns are falling behind in tax payments.

One of them is Carol Eaton, a resident of Milford and owner of Corp Décor that deals with furniture. She is having a rough time paying taxes and said, “It’s the worst year I’ve ever had for business. I haven’t been buying needless things and I’ve budgeted myself in areas I wouldn’t normally do so.”

Another sufferer is Charlotte Wells of Ansonia who is struggling with medical problems and cannot find the dollars to pay taxes timely. She is listed as one of the 25 top whose taxes are due. Her husband recently had a stroke and although he is recovering he still cannot comprehend all that is going around. Wells said that this has complicated matters as she is concentrating on his health. Till now he used to see to tax matters. Right now he needs continuous supervision and as a result all other issues have taken a back seat.

When taxpayers become delinquent the towns as well as the cities are the first hand sufferers. Last December Bridgeport town had failed to collect over $137 million as taxes. Generally its collection is 97% but so far it has brought in only 48.3% in December 2009.

Anne Kelley-Lenz, the tax collector of Bridgeport said that although in comparison to its own past record its collection is low but in other cities and towns the collection rate is far less. This is because Bridgeport sells its liens on certain types of properties. She said, “We have the ability to sell an asset to a third party and get paid for it. For Bridgeport, it’s a necessity because the city gets paid for any outstanding taxes for the year it’s due.”

Kelley-Lenz that if the city sells the property it is for the best for all concerned. She said, “These liens give the taxpayer an option to set up a payment plan with the new owners of the property. There’s a contract that puts a hold on the foreclosure of the property so the taxpayer can pay the amount owed that the city can’t afford to pay.”

Number three on the tax due list is Wheelabrator that deals with the business of converting waste to energy. This company is contending that its tax dues have been wrongly assessed.