8 percent of county property tax unpaid

Luzerne County collected about 92 percent of its property taxes in 2009, according to a new report compiled by the county controller’s office.

But that doesn’t mean each of the county’s 76 municipalities reached that figure. Seventeen of them had 10 percent or more in uncollected county taxes, the report shows.

The county initially issued bills totaling $86.9 million, but $2.9 million was knocked off due to assessment reductions, many stemming from the countywide reassessment.

That left about $84.02 million to be collected, and $77.57 million was received, leaving a balance of $6.45 million, or about 8 percent, the report shows.

“Overall, I was pleased,” said county Budget/Finance Chief Tom Pribula, who requested the report.

The county’s collection rate should be closer to 95 percent, according to consultant Public Financial Management, which highlighted the county’s "weak" property tax collection performance in its financial recovery analysis last year.

But Pribula said the county’s collection rate will technically be higher because the county is projected to receive about $5.5 million still owed from 2009.

That estimate is firm, Pribula said, because the county participates in a program known as monetization.

An outside collection agency reviews the amount of money owed in back taxes and offers the county a percentage, usually 90- to 93 percent, up front, county officials say. The agency then receives the full amount collected by the county for these properties.

Pribula said he has a commitment that the county will receive $5.5 million for 2009 uncollected taxes.

Lake Township had the highest uncollected percentage – 28 percent – but county officials say those figures may change due to a problem with tax collection records. Former tax collector Donna Kocher resigned because of difficulties obtaining a bond guaranteeing recovery of lost or missing tax revenue. Kocher has not yet closed out her records from 2009, the controller’s office says.

The tiny borough of Jeddo has 19 percent in uncollected taxes, followed by Plymouth and Shickshinny with 15 percent each.

“I’m not sure if we could fault the collectors or demographics,” Pribula said. “We have some depressed pockets.”

Hanover Township Tax Collector Mildred Luba, head of the county tax collectors’ organization, has said tax collectors are willing to discuss ideas to get more people to pay, but county officials have to realize that some non-payers simply don’t have the money. Another segment of property owners are perpetually behind, paying what they must to keep their properties out of back-tax sales, she has said.

Jackson Township tax collector Jackie Latosek said Friday that she sends out reminder letters to property owners who have not paid and personally calls some property owners. Latosek had a 97 percent collection rate last year.

County Controller Walter Griffith recently sent all 69 municipal tax collectors a letter spelling out state requirements that they must fulfill, including the mailing of special notices to taxpayers who have not paid their property taxes within four months of receiving their initial bills.

Griffith said many tax collectors are not sending reminder notices, and some property owners need that nudge.

Griffith agreed that many property owners are struggling to pay their taxes, but property owners who do pay have been demanding more aggressive collection so everyone pays their fair share.

Latosek said she does not know if reminder letters are required by law but said she doesn’t believe other tax collectors will have a problem sending them.

“But somebody’s going to have to pay for it. It will be costly,” she said.

Property owners save 2 percent on their tax bills if they pay within 60 days. After the 60-day rebate period, property owners have another 60 days to pay their taxes at face value. A 10-percent penalty is added after 120 days. All property taxes must be paid by Dec. 31 to avoid additional charges.