Terms and Conditions of Payment Plan

If you desire a payment plan with the Tax Collector's office you must understand and agree to the following terms and conditions

  1. Additional penalty of 18% per year continues to accrue on the declining balance throughout the plan. (Interest is posted the first day of each month for the entire month at a rate of 1.5 percent.)
  2. Payments are applied first to all penalties and costs, and the balance, if any, to the taxes.
  3. A minimum of 20% of the Redemption balance as of the date you submit the application is required to start the payment plan. (Please include a copy of web page that shows balance.)
  4. The current balance of your Redemption taxes is $ of which 20% is .
  5. A minimum of 20% of the same balance plus accruing penalty is required each fiscal year there after. If paying equal monthly installments, the minimum payment each month is $100.00 or the amount shown in the payment schedule provided with the Agreement, whichever is the greatest.
  6. The minimum payment is due no later than the delinquent date of the last installment of current year taxes or by the installment date shown in the payment schedule, whichever is the earliest.
  7. The unpaid balance of the payment plan, plus accrued interest, may be paid in full at any time before end of plan. There are no penalties for prepayments or for extra payments.
  8. Current taxes due or past due must be paid in full prior to or at the same time of starting a Plan. All other current and subsequent taxes must be paid in full by no later than their delinquent date.
  9. Failure to comply with the terms and conditions will terminate the plan and prevent you from initiating another one until July 1 of the following fiscal year.
  10. If four or more years have passed since the date of the original tax default, you will not be able to initiate another payment plan, and the property will become subject to the Tax Collector's power to sell (R&T 4217.) By then you will be required to pay the entire balance of the Redemption taxes in a single payment to prevent the property from being sold at the next public auction.

Questions to ask yourself before applying for a payment plan with our office: 

  1. Is rolling the Redemption balance into a Refinance an option?
  2. Is borrowing from a bank/friend/relative at lower interest rate an option?
  3. Is amending an existing bankruptcy filing to include the taxes an option?
  4. Is the lending bank in foreclosure proceedings?
  5. Is the property up for sale? If so, by you or by Realtor?
  6. Has your property been in tax default for more than four years?
  7. Is the Redemption balance more than $5,000?
  8. Is paying off the Redemption balance within one year or two an option?
  9. Is paying equal monthly installments an option?
  10. Is staying current on future property taxes realistic?