PASBO 51st Annual Conference

“Slow Pay”: Is it Better Than “No Pay”? Panel Discussion Thursday, March 9, 2006 2:15 – 3:15 pm, Cocoa 4-5

Presenter: Ms. Bernadine C. Rishcoff Business Administrator/Board Secty. Nazareth Area School District

Real Estate Tax Installment Payments

• Payment option has been in place in Nazareth for over 27 years

• Approximately 50% pay by the installment plan

• All tax bills are eligible for installment payment

Real Estate Tax Installment Payments

• Tax bills are dated July 10• First payment must be made on or before

September 10, which is the same date that the discount period ends

• The taxpayer cannot pay by installment if this date is missed

• There are no exceptions• The installment amount is the base tax / 4

Real Estate Tax Installment Payments

• Following installment payments are due:

November 10, January 10, and March 10

• Dates are adjusted for holidays and weekends

• If either the second, third, or fourth installment payment is late, a 10% penalty is added to that installment

Real Estate Tax Installment Payments

• The tax bill has one part with the amounts for discount, base, and penalty, and the remaining parts are four installment coupons

• Separate installment notices are not mailed for subsequent payments

Real Estate Tax Installment Payments

• Regarding Act 169 of 1998, the tax collectors must reconcile their duplicates as of December 31

• The School Board then approves for them to continue to collect the taxes until they are turned over to the County in April

• The tax collectors then do a final reconciliation

Real Estate Tax Installment Payments

• Concerns regarding new legislation:

• Presently the four bimonthly payments work in Nazareth. A different payment system, for example, of six bimonthly or twelve monthly payments would affect our cash flow, increase costs, and create additional bookkeeping