I received a reply to my e-mail from Steven Jeffrery of VLCT saying that if this legislation were to go forward in some incarnation that the state would indeed be responsible for collection of monies from these various source.  The towns would receive only 2 lump sum payments, one on July 1st and a second in early Sept. for late income tax filers.  If this is the case, it should be fairly simple from the town treasurer's standpoint.   Missy
-----Original Message-----
From: Vermont Municipal Government Discussion Network [mailto:[log in to unmask]]On Behalf Of Roberta Dana, Treasurer
Sent: Tuesday, February 21, 2006 11:02 AM
To: [log in to unmask]
Subject: Re: Legislative Report 2/17/06

In Groton we have always accepted prepayments on taxes.  We only have one installment of taxes each year therefore we encourage people to make early payments if they wish.  We have a taxpayer that sends a monthly payment and others who make lump sum prepayments on taxes not levied yet throughout the year.  We have never had a problem with this.  Yes there is a little more bookkeeping involved but I feel that if the taxpayer wants to make a payment on their taxes we are here to do that for them.  Also helps with the cash flow.
My concern with this proposal is having funds coming from several directions.  Also regarding payroll deductions: all companies, including the town, would have to handle all the bookkeeping for that situation.  We are a small town and do not use a payroll service.  I do the payroll in house so therefore would be keeping track of all the deductions and then have to transfer that money back to the town.  Sounds like more work to me!!
Roberta Dana
Groton, VT
----- Original Message -----
From: [log in to unmask] href="mailto:[log in to unmask]">Patti Lewis
To: [log in to unmask] href="mailto:[log in to unmask]">[log in to unmask]
Sent: Tuesday, February 21, 2006 10:35 AM
Subject: Re: Legislative Report 2/17/06

I have just read this article.
 
Recently our Town called our accountants, VLCT and the Tax Department and asked the question of them if the Town could or should take prepayment on taxes.  In otherwords we had a person who wanted us to "hold" some money for them to go toward their tax bill for 2006, which will not be generated in our Town until June or July. While the answer was that there did not appear to be anything that would prevent the Town from doing so if they so chose it was highly discouraged to begin this practice. We were told that we could use the words, "the Town has no authority to collect taxes which have not yet been levied".  There was concern about would the Town have to pay interest on any money being held in such a manner and some concern about possible ways the property owner could litigate should there be an appeal of taxes. Not clear on this last point but it was included in a voice mail message that discouraged us further.
 
Anyway, my question is this, if they are proposing that that prebate/rebate payments and income tax refunds would be sent directly to the Towns wouldn't this be the same as taking prepayments on taxes?
 
Payroll deductions would most certainly be.
 
I think we would be looking at an accounting nightmare.
 

Patti Lewis

Treasurer

Asst. to Selectboard

Asst. Town Clerk

802-496-2454 x 23

 

From: Vermont Municipal Government Discussion Network [mailto:[log in to unmask]] On Behalf Of Donna Kelty
Sent: Monday, February 20, 2006 1:51 PM
To: [log in to unmask]
Subject: Re: Legislative Report 2/17/06

Roberta,
 
  I too read the VLCT lead article and have already sent an email to my house rep to get more information. 
 
  While I agree with the concept of combining the "rebate" and "prebate" program, there are still tooooooo many variables on the implementation.  Example - when the state collects money via "payroll deduction," is this weekly, bi-weekly, monthly, quarterly, etc?  Who is going to maintain the "accounting" for all these collections?  If this is anything more than a one-time deduction when and how often will the Town receive their money?  Can the state legally collect "municipal taxes"?  I can't find anything that says that can or can't - so does this mean they will only collect the education portion?  What about municipalities like mine that does not allow "partial payment" of current tax installments?
 
Way too many questions - I need more info now, ESPECIALLY SINCE THEY WANT TO IMPLEMENT FOR THE 2007  tax bill.  I recommend you contact your house rep and see if you can get any more info.
 
Donna J. Kelty
Barre Town Clerk-Treasurer
802-479-9391
[log in to unmask]
 
Visit our website at www.barretown.org

From: Vermont Municipal Government Discussion Network [mailto:[log in to unmask]] On Behalf Of Roberta Dana, Treasurer
Sent: Monday, February 20, 2006 1:16 PM
To: [log in to unmask]
Subject: Legislative Report 2/17/06

I have just finished reading the latest Legislative Report that I received via email last Friday.
One of the proposal that the legislature is considering has individual's tax payments coming into the town from several directions!!!  Have any other Treasurers or Collectors of Current Taxes read this report?  How many more hours does the legislature figure that the taxpayers can afford to have us work??  Would love to hear other opinions!!
Roberta Dana
Treasurer and Collector of Current Taxes
Groton