Millions in taxes yet to be paid

The deadline for paying Richmond County property taxes passed this week, and $31.1 million remains uncollected.

But considering that all 91,157 bills for real estate, personal property and business assets total $141.9 million -- money for the school district, the city government and the state -- that's not bad for this point in the process, Richmond County Tax Commissioner Steven Kendrick said. That means 78 percent is already in.

"That is to be expected," he said, "because we have not started what you would call the delinquent tax collection process for 2009."

Of the $31.1 million figure, about $4 million is taxes on public utilities such as Georgia Power and BellSouth. The Georgia Department of Revenue hasn't set those assessments yet, so the bills have yet to be sent out.

Some portion will be uncollectable because of bankruptcy filings and insolvencies, or where, because of a lack of interest by the owners, the city has stepped in to raze houses or has tried unsuccessfully to sell the properties on the courthouse steps, Mr. Kendrick said.

As for the rest, the clock is ticking.

Be warned: The tax commissioner's office is becoming more aggressive in going after delinquents. Mr. Kendrick plans to hire a personal property levy officer to go after unpaid bills -- one of the few new positions being created next year, at a salary of $45,000.

Monday was the deadline for paying without incurring penalties. If payments were mailed, they had to be postmarked by Monday.

Late bills will be assessed a 1 percent penalty, then another 1 percent per month on the outstanding balance, Mr. Kendrick said. After Dec. 20, an additional 10 percent will be tacked on.

Augusta raises about $1 million a year through tax penalties, he said.

In late December, letters will go out saying that if the bills aren't paid in 30 days, liens will be filed. Last year, 30-day letters didn't go out until the end of February, and this year the lien process will be starting in late January or early February, Mr. Kendrick said.

Once a lien is filed, the next step is to put the properties up for sale, but they don't all reach that point because of limited time and manpower, Mr. Kendrick said.

One new initiative is to start the tax sale process sooner, in June instead of August, allowing Mr. Kendrick's office to reach people who owe less but who might be overdue on multiple properties.

In the past, the office focused on people and businesses who owed thousands of dollars, and by the time it got to lesser amounts, a new year had begun and the office had to start over on a new crop of delinquents.

Now Mr. Kendrick is looking to reach people who might owe $300 or so on several properties, perhaps over a number of years, making for a high lump sum.

He plans to pursue other avenues, too. Indeed, City Administrator Fred Russell's proposed 2010 budget for the city government includes $200,000 in expected increased revenues from Mr. Kendrick's new program, one of several ways the city could plug a shortfall and prevent a tax increase.

Mr. Kendrick, who begins his second year in office in January, said $200,000 was a conservative number.

There's $1.5 million in unpaid mobile home taxes and $1 million in delinquent business taxes -- taxes on such things as manufacturing equipment, furniture, computers and other assets. Assuming $1 million of that would turn out to be uncollectible, he hopes to find about $1 million for the Richmond County school system and $500,000 for the city.

These aren't tactics designed to fix budget problems, Mr. Kendrick said.

"For me," he said, "it was, this is what the citizens ask of the tax collector, to go after the taxes, and do it aggressively but compassionately."

In the seven years before 2009 -- as far back as delinquent taxes can be pursued because of the statute of limitations on tax liens -- 0.4 percent, a total of $3.3 million, remains uncollected.

Reach Johnny Edwards at (706) 823-3225 or johnny.edwards@augustachronicle.com.