No one enjoys paying property taxes, but many individuals honestly have trouble paying their tax bills on time. That’s especially true since most counties and municipalities now require that the levy be paid in a lump sum. There’s no equitable way to relieve the obligation to pay property taxes, but there are methods available to make doing so a bit more convenient. Hamilton County Trustee Bill Hullander and Bradley County Trustee Mike Smith will make them available them to the citizens they serve. Their offices soon will begin to offer partial payment or optional monthly payment plans.
While not unique in Tennessee, the payment plans announced in Hamilton and Bradley counties are rarely employed. Smith says only a few – probably two or three – counties in the state previously offered a monthly payment option. That’s likely to change.
Smith said earlier this week that when word spread that Bradley County was going to implement the monthly payment plan, he received a flurry of calls from officials across the state who might want to adopt a similar program. Hullander’s Thursday announcement is likely to elicit similar interest. And why not? While taxpayers can still pay their taxes in a lump sum, partial and monthly installment plans are viable alternatives.
The partial payment plan allows taxpayers to meet their obligation by setting up a payment schedule from October, when tax bills are typically issued, through February, when taxes can be paid without interest or penalty. The amount paid each month can vary depending on a variety of factors. Information about the plans, payment schedules and any fees involved are available at the main and satellite offices of the trustee.
The monthly payment plan – which becomes operative in 2011 – is another useful alternative, particularly for those who prefer to pay the tax man in equal installments over the course of a year rather than all at once. Depending on the county, payment can be made by credit card, bank draft, by mailing payments or paying in person at the trustee’s office. This plan, too, has merit for taxpayers. It serves county interests as well.
According to Bradley County Mayor D. Gary Davis, a bit more than a third of the revenue in his county’s general fund currently comes from property tax revenues. That’s true in most counties. The bulk of that revenue now arrives in county coffers from December through February, the period immediately after tax bills are sent to property owners. As a result, cash flow can be slow at other times of the year. That sometimes makes it difficult for a county to pay bills and to meet other obligations.
The partial and monthly options could help ease that problem by providing more regular infusions of cash for the counties..
The alternative payment plans are a win-win for all involved. They offer a convenient service to citizens. They will be implemented at no additional cost to taxpayers. Indeed, the latter is a requirement. The Tennessee Comptroller of the Treasury must scrutinize and approve the plans and associated costs before implementation. The process is justifiably rigorous, but Smith and Hullander agree that the effort is worthwhile. They’re right. Approval allows their offices to extend new and useful services to taxpayers at no cost.
Their decisions to provide new services to constituents are welcome. While paying in installments can’t reduce a tax bill, it can make it more convenient for taxpayers to meet the obligation. Other county trustees in the region reportedly want to establish partial or monthly tax payment plans in their jurisdictions. They should be encouraged to do so – as long as it can be done in a fiscally responsible manner.