City begins $123,000 repayment to county
City of Washington officials have started to repay a $123,000 debt owed to Washington County.
The debt is a result of 10 years of failure to pay commission on delinquent tax property sales.
According to Debbie Bardella, Washington County recorder of deeds and director of the Washington County Tax Revenue Department, when a city property owner fails to pay taxes, the property can be sold at auction to cover any back taxes and associated costs.
When a sale occurs, the city receives its share, with a five percent commission owed to Washington County Tax Claim Bureau.
From 2004 through 2013, the city failed to pay the commission, adding up to a debt of more than $130,000.
“This has been going on for some time. Several mayors said they would pay, and we never got anything,” Bardella said. “We all know it’s due. But nobody has sat down and had it taken care of.”
Years ago, the debt accrued from 2004 through 2006 was excused. Bardella believes there was a ruling by a Washington County judge, but she couldn’t recall who made the decision, or when.
In order to recoup funds owed from as far back as 2007, Bardella said the county has retained the city’s money from tax delinquency sales. She said about $8,000 has been withheld.
“We’ve been doing that, but, obviously, that’s not the remedy,” she said. “We don’t sell a lot of (those) properties.”
Mayor Scott Putnam said he made it a priority to repay the money when he took office in January. At the June 8 city council meeting, he and council approved a payment of $25,000 to the county.
Bardella said she asked the money be paid over the next two years, with half to be paid in 2017 and half in 2018.
“We’re working toward that,” Putnam said. “We are aware that we owe the county the money, and we have every intention of paying it back.”