Ocean City Council adopted a resolution that provides property tax relief due to COVID-19 for property assessed greater than $620,000 for six months. Ocean City taxpayers with property valued at less than $620,000, will receive no relief. Below are the letters sent to Ocean City Mayor Jay Gillian, from FIT, Fairness in Taxes President, David Breeden.<\/p>\n\n\n\n
April 23, 2020<\/p>\n\n\n\n
Dear Mayor Gillian:<\/p>\n\n\n\n
I am writing in regards to the proposed resolution that will adjust interest rates on delinquent property taxes as a result of the COVID-19 pandemic. You should be commended for taking steps to reduce the short term financial burden being placed on struggling taxpayers by this extraordinary event. <\/p>\n\n\n\n
However, the resolution as prepared will not provide any financial relief whatsoever to certain property owners.<\/p>\n\n\n\n
As you know, currently, interest rates on delinquent property taxes are 8% on the first $1,500 and 18% on any amounts in excess of $1,500. Under the proposed resolution, the interest rate on the first $1,500 would remain the same at 8%, while the interest rate for delinquent taxes in excess of $1,500 is decreased or lowered by 10 points to 8%.<\/p>\n\n\n\n
This resolution provides no financial relief to a property owner whose home is assessed at or under $620,000. If those property owners are late with their tax payment, they are still charged 8% interest; no change and no relief.<\/p>\n\n\n\n
This represents a glaring oversight that needs to be adjusted so that the city treats all property owners equally along with affording the same financial relief on delinquent property taxes due to the virus.<\/p>\n\n\n\n
Consideration should be given to what many towns are implementing and that is simply providing a thirty (30) day grace period for the tax payment due May 1 with an interest rate of essentially zero percent. This affords the same level of financial relief to all taxpayers along with providing time for the city to assess how the pandemic is impacting tax collection. <\/p>\n\n\n\n
If tax collections are adversely effected by the ongoing pandemic, then further adjustments can be made at a later date based on actual tax collection rates versus anticipated tax collections rates.<\/p>\n\n\n\n
For your easy reference, I have attached a resolution from a neighboring communities as an example of this fair and appropriate approach.<\/p>\n\n\n\n
Regardless of the city\u2019s eventual position on this matter, it is critical that the city treat all taxpayers fairly and equally during this challenging time. The proposed resolution as written does not accomplish that and therefore changes should be made to reflect equal and fair treatment for all taxpayers.<\/p>\n\n\n\n