County gets $250K in back taxes
Published 1:38 am Wednesday, December 13, 2006
By By MICHAEL C. GUILMETTE JR. / Niles Daily Star
NILES – More than a quarter million dollars meant for Berrien County schools has been collected by the county treasurer's office since August 2005. This apparent windfall is due to stepped up efforts to collect delinquent personal property taxes owed to the county.
"We are working with local assessors to help get the businesses current," Bret Witkowski, Berrien County treasurer, said Tuesday. Witkowski added it is the businesses that pay this tax.
Personal property refers to general property for everyday use at a business, such as desks, chairs, computer equipment and related items. According to Witkowski, this property is taxed at the rate of 18 mills.
According to figures released by the treasurer's office, Benton Harbor leads in the amount of collected back taxes, with $117,200.65 – 46.88 percent of the total for the county – having been added to the county coffers.
Niles follows Benton Harbor at $27,487.13, 10.99 percent of the overall collection.
Even though the delinquent funds are earmarked for the county's schools, Witkowski said the schools do not feel the pinch themselves.
"The county borrows the money and gives it to the schools," Witkowski said, adding the county is then responsible to recoup the shortage.
"The law allows us to tag buildings and tag equipment," he said, explaining the property can then be removed from the business, stored and ultimately sold at auction if the tax bill is not paid.
Witkowski did note that if an item is sold at auction for more than its appraised value, the business owner receives the difference. However, he added that since the current collection efforts began, no business has had property tagged, although some have come close.
"We are willing to work with businesses to help get them current," Witkowski said. "We can set up a payment plan to allow them to pay a year's back taxes over a six-month period."
He also said the county charges 1 percent interest on these payment plans, and the county also accepts credit cards. Witkowski added payments can be made through the county's Web site, www.berriencounty.org.
Since 2005, 24 businesses have paid off their back taxes, and Witkowski said they are working with at least 50 businesses. He also said the collection efforts are paid from using the interest fees and are not drawn from the county's general fund.
Witkowski said businesses that have past due tax bills should contact the treasurer's office to set up a payment plan.
"The assessors will work with businesses. We just need to know they need help," Witkowski said.