Battleford town council considered tax enforcement options at its Monday meeting.
According to an administrative report prepared by Finance Director David Gillan, outstanding property taxes in Battleford total $579,136.
Eighty accounts owe a total of about $41,000, another 108 accounts owe about $250,000, while 33 accounts each owe the town more than $5,000.
The amount owing of the 33 accounts totals about $287,000.
According to Gillan’s report, the overdue accounts have grown due to an economic downturn and internal staff turnover.
Many municipalities outsource tax collection, and Battleford administration has talked to a company called Taxervice.
The process, according to Gillan’s report, involves council deciding to use Taxervice. The town would send a warning letter to ratepayers that a third party “will be engaged” with most costs borne by the ratepayer, if taxes aren’t paid by a certain date.
If taxes aren’t paid by that date, Taxervice steps in. Taxervice would invoice the town $295 per account, and send a letter and a $295 charge to delinquent ratepayers. Should ratepayers not pay by the time stated in the previous letter, a $300 fee would be charged to delinquent ratepayers.
At stake for the town is paying Taxervice upfront for outstanding taxes that aren’t collected.
Even if Taxervice is employed, they likely wouldn’t do all the town’s tax enforcement, Gillan said. The town and Taxervice would share the work.
Councillor Shelley Boutin-Gervais expressed concern that the people who aren’t paying “aren’t paying because they don’t have the money, now we’re going to charge them more money.”
Mayor Ames Leslie said some “may be not paying because nobody’s put pressure on them.”
Gillan said some ratepayers who haven’t paid their taxes are likely a little late and such debts could disappear easily.
Gillan’s administrative report recommended Taxervice engage with ratepayers who owe more than $2,500.
Council ultimately decided to give the finance department a deadline of June 1 to see how tax collection goes until then, and council will decide at a later date whether or not to employ Taxervice.
