Sussex chips away at collecting back taxes

The county is owed $16.7 million in delinquent property and school taxes, and sewer and water bills. That figure includes $13.9 million in back property taxes, including $5 million interest, and $2.9 million in back water/sewer fees, including $560,000 interest.

Ninety percent, or $11.9 million, is back school taxes and 10 percent, or $1.9 million, is back county taxes.

Those numbers are updated from delinquent tax totals released last week.

There is nearly as much in back taxes owed by mobile home owners – $3.6 million in parks and $2 million on leased land for a total of $5.6 million – as residential property owners at $5.9 million. There are more than 4,800 delinquent residential accounts.

Sussex County Council President Mike Vincent made it clear that a June 8 presentation on the county's collection process was for informational purposes only with no discussion or questions from council. “This is information only and we'll go from there,” he said.

Sussex County Administrator Todd Lawson said by state law, the county collects county taxes for its own revenue, and school district taxes, which are turned over to the state. However, all expenses related to tax collection are paid by county taxpayers.

Delinquent accounts decreasing

Sussex County Finance Director Gina Jennings said since 2010, when the county provided staff and updated collection procedures, the number of delinquent accounts has dropped from 10,700 to 6,623, a 38 percent decrease.

“We have been very successful in our collection process, and staff is bringing the numbers down,” she said.

In 2009, no staff were dedicated to collections, and one person was added in 2010. Jennings said today, three staff people and a manager are assigned to the collections department.

Over the past five years, the county has collected an average of 99 percent of taxes and fees owed, said collections manager Katria Mears, for an average of $147 million per year over the period. During that time period, $6.4 million is still outstanding for an average of $1.3 million per year.

Updated procedures

Mears said the county mails three delinquent notices per year to those in arrears. Staff make phone calls to either collect money in full or establish a payment plan of up to three years’ duration. Currently, property owners owing $2.4 million are enrolled in payment plans.

A constable or sheriff's deputy visits properties to check to see if a property is occupied or abandoned.

Mears said in September 2020, the collections department partnered with the Sheriff's Office to post properties with final delinquent tax notices and a notice that the property was slated for sheriff's sale. Mears said to date, they have posted 122 parcels, with 51 property owners paying in full.

Staff place liens on properties, list the top 1,000 delinquent accounts on the county website, utilize wage attachments and report delinquencies to mortgage companies.

The county also has a clean-hands ordinance to assist in collections. Under the ordinance, residents cannot obtain building permits or file land-use applications unless all county financial obligations, including property taxes, are paid.

Mears said they recently collected $35,000 in back taxes from a builder who was forced to pay before obtaining new building permits.

Schaeffer says he has questions

Vincent said the item was added to the agenda following a presentation to council by some concerned residents. The residents also contacted District 3 Councilman Mark Schaeffer, who requested that the issue be placed on an agenda.

“The men and women who work for Sussex County do a wonderful job. They take direction from county council, and it is county council's duty to collect revenue owed to the taxpayers in a timely fashion,” Schaeffer said.

However, he added, “As well done and informative as the presentation was, there was no solution offered how and when the uncollected $13.7 million in real estate taxes and the $2.7 million in sewer fees were going to be collected.”

“I believe in full transparency, regardless of whether or not the information given to the taxpayers is flattering,” Schaeffer said. “The taxpayers have a right to know where their money is and how it is being managed. This is the taxpayers' money, not the council's money. I will continue to ask questions and work toward accountability and collection of our citizens' money.”

SOME OF THE NUMBERS

Residential: 2,553 delinquent parcels; 93 percent are owner occupied; 56 percent are in payment plans; 7 percent are in bankruptcy; $1.2 million are pending sheriff's sales.

Mobile homes: 2,256 delinquent homes; 90 percent are owned occupied; 12 percent are in payment plans.