Another Question.   Pretend there are quarterly payments and the Selects have voted to apply the 'prebie' to the first payment with any left over going to second and so on.  
What if there is someone who will basically not owe any out of pocket money until February OR even May??? (this may not be stretching too far in some situations) 
Would the Town just keep that money and be applying it along the way and NOT have to refund even if the Town is sitting on the money for six months or more. 
Also note that my School Board feels they should get this money as soon as the town gets it - at most 20 days after - because it is for school - not town - taxes.  Not off the wall at all, with the excessive amount of time I have already spent explaining this to date - months before it happens - I have reached the point where it's fine with me for the State to collect this  mess, they can deal with the confusion, address changes.....etc etc.
Miki   Townshend Treasurer
 
----- Original Message -----
From: [log in to unmask] href="mailto:[log in to unmask]">Grace, Mary Jane
To: [log in to unmask] href="mailto:[log in to unmask]">[log in to unmask]
Sent: Tuesday, April 10, 2007 12:44 PM
Subject: Re: Q and A regarding HS-122 stuff during Nemrc Seminar

Mary Ann,
 
I may have spoken a little too quickly here.  It's not really my area.  Let me check into it a little more.
 
Mary Jane


From: Grace, Mary Jane
Sent: Tuesday, April 10, 2007 1:32 PM
To: 'Vermont Municipal Government Discussion Network'
Subject: RE: Q and A regarding HS-122 stuff during Nemrc Seminar

Mary Ann,
 
It the town is overpaid they have to pay it back to the taxpayers within  60 days of being overpaid. It doesn't matter if the source of the overpayment is the State or an escrow company.
 
Mary Jane

 

From: Vermont Municipal Government Discussion Network [mailto:[log in to unmask]] On Behalf Of Mary Ann Wilson
Sent: Tuesday, April 10, 2007 12:34 PM
To: [log in to unmask]
Subject: Re: Q and A regarding HS-122 stuff during Nemrc Seminar

This makes it clear that over-payments received by the municipality from the State shall be refunded to the taxpayer.  What about escrow companies and the myriad oddities?  Do we have some direction from the state or are towns developing their own policies for refunds or credits?
 
Mary Ann - Morristown


From: Vermont Municipal Government Discussion Network [mailto:[log in to unmask]] On Behalf Of Grace, Mary Jane
Sent: Tuesday, April 10, 2007 8:10 AM
To: [log in to unmask]
Subject: FW: Q and A regarding HS-122 stuff during Nemrc Seminar

Forwarding note about HS-122 payment.
 
Mary Jane, PVR


From: Hardaker, Rhonda [mailto:[log in to unmask]]
Sent: Friday, April 06, 2007 3:06 PM
To: [log in to unmask]
Subject: Q and A regarding HS-122 stuff during Nemrc Seminar

Monday 4/3/07 at the Montpelier Grandlist seminar Tanya Perry was asked a question that she said she would review with other Tax Department employees to double check her answer. After doing so- here’s the response.

The question that was asked: Taxpayer anticipates a tax bill of $500.00. Although taxes are not due until November, the taxpayer makes a payment to the town of $250.00 in July. The State also sends the town a payment of $500.00 in July which creates an overpayment on the taxpayer’s account of $250.00. Does the town mail the property owner a refund 60 days from the date of the overpayment or 60 days from the due date of the tax bill?

Answer: If the town receives an amount from the state on July 1 that exceeds current and prior year(s) liabilities, the town must refund the over-payment, without interest, to the taxpayer within 60 days of July 1. Otherwise, the town keeps the money and simply applies it - regardless of whether they bill annually or quarterly.

Here is the law as it reads:

Sec. 3. 32 V.S.A. § 6066a (f)(3)

(3) The payment received by the municipality from the state for credit to the taxpayer shall be credited first to current-year property tax on the homestead parcel, next to current‑year homestead parcel penalties and interest, next to any prior year homestead parcel penalties and interest, and last to any prior year property tax on the homestead parcel. No payment shall be allocated to a property tax liability for any year after the year for which the claim or refund allocation was filed. If the payment received by the municipality exceeds the amount allocated under this subsection, the municipality shall refund the excess to the taxpayer, without interest, within 60 days of receipt by the municipality. No municipal tax-reduction incentive for early payment of taxes shall apply to any payment made to a municipality by the state under this chapter.

 

Information provided by-
Tanya Perry
Tax Internal Audit Lead Examiner
Division of Taxpayer Services
[log in to unmask]

 


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