FARMINGTON — Selectmen on Tuesday night approved a new policy that will help collect delinquent taxes or utility payments.
“This is something that you can implement if we have vendors who we pay out to for services and they have outstanding personal property taxes, real estate taxes,” Treasurer Tammy Bureau said. “We could withhold the check, apply it to their taxes. If the check was more, over and above what they owed, we would pay the taxes, send them a receipt with the difference after taxes and a letter explaining what we did.”
This is state law, Bureau said. She wasn’t sure how many vendors from Farmington there are or the number of people with personal property accounts. “Personal property is the hardest thing to collect,” she said. You can take them to court, you can spend the money, get the judgment. Good luck getting the money. You can’t put a lien on it.”
Chairperson Joshua Bell asked if the policy could be used for someone renewing a liquor license.
This policy is strictly for paying someone for their services, Bureau thought. The Lewiston clerk (where Bureau once worked) uses something similar for licenses, she said. “They would have a list of those accounts and would let us know if they had a license coming due. We could send them a letter and let them know, saying the license will not be renewed unless these taxes are paid.”
Bureau said Lewiston also flagged vehicle registrations for those habitually not paying their taxes.
Town Manager Erica LaCroix said only the excise tax portion of a vehicle registration could be denied.
“Right, but if we deny the excise they can’t register their vehicle because you can’t register your vehicle until you have gone to your town to pay the excise tax,” Bureau said. The TRIO software (used in many municipalities) has a feature that indicates when a vehicle owner owes taxes, not to register the vehicle until the taxes have been paid or a payment plan made, she said.
A similar policy was in place in Winslow for business permit renewals, LaCroix said. Winslow had to pass a special policy for it, and she wasn’t sure if it was a state law or if a municipality could decide that. “I would think a liquor license would fall under the same thing,” she said. “I don’t see why it wouldn’t.”
Bureau said she would reach out to her contacts in Lewiston for information on applicable state laws.
The town’s attorney has reviewed this policy, it was noted.
According to state statute, any municipality may withhold payment of money payable to any taxpayer whose taxes are wholly or partially unpaid, to an amount not in excess of the unpaid taxes together with any interest and costs. The tax collector’s rights shall not be affected by any assignment or trustee process, the statute says.
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