Champaign County could see $1M after change in unpaid tax collections

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The Springfield News-Sun digs into important stories about government spending, including recent coverage of property tax issues on the November ballot and the costs to repair roads.

By the numbers

$1 million: Amount Champaign County hopes to recoup in unpaid property taxes with tax lien sales

175: Notices sent to Champaign County property owners who owe real estate taxes

38: Ohio counties that sell property tax debts to private collection companies

Champaign County has a new tool to collect delinquent taxes that could bring in more than $1 million in revenue.

The county will begin using tax lien sales in November to collect overdue property taxes. That means it will sell those unpaid debts to a private company that will pursue collecting the money.

This month 175 notices were sent to property owners who owe money. The notices inform them that their unpaid bill will be sold to Tax Ease Ohio on Nov. 3. unless they pay their taxes or set up a payment plan with the county.

“We want as many people as possible to sign up for our payment plan instead of the sale,” County Treasurer Robin K. Edwards said.

The county won’t apply penalties or interest on payment plans as long as taxpayers keep up with payments. That way they avoid a 17.5 percent per year interest rate that Tax Ease Ohio will impose, Edwards said.

Once Tax Ease Ohio purchases the lien, the county receives the amount of the past due taxes a couple of days later.

“We receive the money almost immediately,” Edwards said.

About 75 to 80 percent of that money will go to schools within the county, she said.

Urbana City Schools Superintendent Charles Thiel said he’s still waiting to hear when schools will receive that money.

“We do typically count on a certain percentage of unpaid taxes so anytime that decreases, that’s a benefit for us,” he said.

In 1997 the Ohio General Assembly passed a law allowing counties with populations of 200,000 or more to sell unpaid tax debts to private companies. That meant only the 12 largest counties had the ability to use tax lien sales.

Then in 2008, that law was changed to allow all county treasurers that option.

The three property owners with the highest delinquencies in Champaign County owe nearly $70,000. At the top of that list is a Mechanicsburg man named Gregory Ross, owing more than $39,000. Ross set up a payment plan with the treasurer’s office, Edwards said, after he received a notice from the county about selling his balance to Tax Ease Ohio.

Ross couldn’t be reached for comment.

About 96 percent of accounts that are sold will be resolved with the property owner, Tax Ease Ohio Representative Dawn Hoosier said. About 3 to 4 percent will end in foreclosure.

“Our ultimate goal is not to acquire property,” Hoosier said.

Those who work with the company can have up to five years to pay back their delinquencies, she said.

Not all property owners with delinquencies will have their accounts sold. Some exceptions will be made, Edwards said, including the homes of the elderly and disabled, vacant or foreclosed properties or those with a low value.

Statewide 34 other counties use Tax Ease Ohio to recoup unpaid taxes, Hoosier said. Three others — Franklin, Hamilton and Cuyahoga counties — sell the debts to other companies.

Clark County Treasurer Stephen Metzger couldn’t be reached for comment. But staff members in his office said Clark County doesn’t use the sales.

Nearby Shelby County has used them for more than three years. The sales have been a success, Shelby County Treasurer Linda Meininger said, and she would recommend them to other counties.

“You can only deal with the delinquencies for so long,” Meininger said.

County Commissioners’ approval isn’t needed to begin using selling the debts, but Edwards said she had a meeting with Champaign County commissioners with Tax Ease before deciding to move forward.

For taxpayers who do have their delinquencies sold to Tax Ease, she said they still have to keep up with current real estate payments to the treasurer.

Edwards began working as Champaign County treasurer one year ago and said she wanted to work with Tax Ease to bring in more revenue.