County mulls locking businesses behind on taxes
Published 12:00 am Friday, August 21, 2009
The talk turned from budget numbers to getting the sheriff involved when Warren County supervisors met Thursday.
“We’re going to be compelled to put unprecedented pressure on our collecting efforts,” said District 5 Supervisor Richard George, board president. “We’ve got to bring pressure to bear.”
Unpaid personal property taxes from 2006 to 2008 total $531,414.01 from more than 270 property owners, mostly businesses.
Warren and other counties follow a state-set three-year process under which owners can lose their deeds for repeatedly failing to pay assessments. A buyer merely needs to pay what’s owed to the city, county and schools, but almost all parcels “sold for taxes” are “redeemed” by owners who have the right to keep the deed by paying back taxes and interest at any time before a tax deed can be sought at the end of the three-year period.
Banter at the informal session over another alternative, a little-used state law allowing sheriffs to seize delinquent properties, intensified Thursday as supervisors looked at the list of unpaid taxes. Some owners, they noted, have businesses that routinely sell goods or services to the county. Supervisors told attorney Randy Sherard to gather the necessary legal backup to start the process.
The option starts with filing a notice of tax lien with the Circuit Clerk’s Office and issuing a “jeopardy warrant” if the office believes collection of taxes will be jeopardized by delay. Once the debt is deemed due under such a warrant, it becomes equivalent to an enrolled judgment.
Once served, any personal property seized can be sold at public auction until all the debt and related expenses are satisfied. The option has not been used in the recent past. Sherard, board attorney for 13 of the past 17 years, said cases were prepared during the tenure of former Tax Collector Pat Simrall to notify the Sheriff’s Department of the option, but efforts did not progress.
Tax Collector Antonia Flaggs Jones said this week 1,795 parcels were advertised for the tax sale to be held Aug. 31. Property owners pay delinquent amounts up to the sale day, but 1,397 went out for bids last year.
Under the budget draft studied Thursday, increases for Hinds Community College and Warren County-Vicksburg Public Library would be less than in a previous draft.
If approved as part of the final budget, Hinds’ $2,192,724 in county funding would surpass this year by about $19,000 instead of about $200,000. Funding for the Veto Street library will be $20,405 less than a first draft, but about $17,000 more than this year. Renovations to the interior have been put off at least another year, while federal stimulus money has been eyed for new windows and light fixtures.
A final budget is expected to be approved following a public hearing at 9 a.m., Tuesday, Sept. 8 at the courthouse. The Vicksburg Board of Mayor and Aldermen will convene a hearing on its proposed $31 million budget at 7 p.m., Thursday, Aug. 27 at City Hall. Formal adoption of the city’s budget is also expected Sept. 8.
Land roll values rose 5.9 percent in this year’s property valuations, mostly attributed to new high-end construction. The new budget year starts Oct. 1.
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Contact Danny Barrett Jr. at dbarrett@vicksburgpost.com