By Dick Lindsay Berkshire Eagle Staff
Updated: 03/29/2011 12:12:53 AM EDT
Tuesday March 29, 2011
PITTSFIELD -- The city has collected a fraction of the $3.1 million it’s seeking to recoup from real estate scofflaws through a tax amnesty program that began nearly two months ago.
Since Feb. 1, owners of 13 properties have paid a total of $69,000 -- 2 percent of the money owed on 270 commercial and residential properties. The remaining tax delinquents have until May 31 to avail themselves of the program which gives a partial break on property tax bills.
They are required to pay in full what is owed on their land and buildings. In return, the city will forgive 75 percent of the penalties and interest that has accrued on those delinquent bills. City officials had hoped for a better response, but they said it beats no response at all.
"It’s $69,000 more than we would have collected," said Pittsfield Treasurer and Finance Director Susan Carmel. The tax amnesty applies to overdue bills prior to July 1, 2009. All water, sewer and other city fees levied against the 270 affected properties must also be paid in full. Pittsfield is seeking to collect $2.6 million in property taxes and 25 percent of the $2.13 million in interest, or $532,000, from the outstanding bills.
The state Legislature last year granted cities and towns permission to conduct tax amnesty programs, which was last done seven years ago, in order for cash-strapped municipalities to boost local revenue.
During January and February of 2004, Pittsfield raked in $354,000 from 13 of 198 properties in arrears. The amount collected was about 20 percent of the $1.7 million in principal and reduced interest that was owed the city.
While state-supported tax amnesty is short lived, Pittsfield has its own ongoing program to assist property owners pay overdue bills. Those with liens against their homes and businesses can pay 25 percent of what they owe the city, with the remaining amount paid in monthly installments over a three-year period at 16 percent interest.
"Many people who have asked about tax amnesty were unaware of our payment plan," said Carmel. "I had two people sign up for the city program."
Meanwhile, Pittsfield has faired better using a collection agency to recover nearly $43,000 of the $191,000 owed in personal property taxes from fiscal years 2005 through 2009. The city will receive $32,000 with F.H. Cann Associates of North Andover retaining $11,000 as its collection fee, according to city Tax Collector Marilyn Sheehan.
"[F.H. Cann] has managed to get some of the hard-core tax delinquents to make payments," Sheehan said.
In January, the city hired F.H. Cann to track down 513 current and former business owners and second-home owners who were in arrears. Sheehan said the three-year contract will also cover any future overdue personal property tax bills through fiscal 2012.
Personal property taxes are assessed on the merchandise, furnishings, machinery, tools, animals and equipment used to run a business, according to the state Department of Revenue. In addition, homeowners who aren’t permanent residents of the city must pay personal property tax on their household furnishings.
Call Carmel’s office at (413) 499-9466 regarding the property tax amnesty program, while those with overdue personal property tax bills can contact the tax collector at (413) 499-9432. To reach Dick Lindsay:
rlindsay@berkshireeagle.com,
or (413) 496-6233 | 
