Pittsfield Selling Back Tax Liens; Installing Online Permitting Software
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In the spring, the city is planning to auction off bundles of tax title liens — giving a private firm control of collections and ultimately property takings.
"We will sell the lien, essentially, and the right to collect to a company that specializes in this and has resources to do this," said Mayor Daniel Bianchi said.
"Right now we have $10 million in uncollected property taxes. Other communities — Worcester, Springfield — have done this. It is a way for a community to collect the equivalent of back taxes."
Instead of going through the lengthy tax title process, the city will essentially sell the debt owed to it to investors.
"This is not to punish anyone. These are taxes that are owed," Bianchi said. "We have some liens that are 20 years old."
According to City Attorney Darren Lee, the auction in the spring will feature titles from all wards in the city. Liens are put on properties that are more than one year past due in taxes.
"Once an account is in tax title, the taxpayers are responsible for 16 percent interest on the principal balance of the account," Lee wrote in a statement.
The city is currently out to bid for a company to manage the auction. A pre-auction meeting to review the proposed properties is expected to be held for investors and public meetings are expected for property owners.
In other business last week, the City Council approved purchasing $307,000 worth of new software. The city will spend the next two to three months installing $110,000 worth of online permitting software.
"We're going to roll it out a little at a time. We're going to start with the building inspectors, they generate the most permits. Then we'll get into other things like special events," Bianchi said.
"People will be able to do a lot more, if not everything, online. But that is not to say that they won't have to visit the municipal office but it should cut it down significantly."
Concurrently, the city will be installing $197,000 worth of new computer-assisted mass appraisal software for the assessor's office. Those programs are eyed to ease the assessment process.
Tags: delinquent taxes, property taxes, tax auction,
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