Background Municipal property taxes are due and payable in full on October 1annually. State law does not authorize the receipt of partial payment of taxes, but requires all tax obligations to be paid in full on or before March 1. Taxes not paid by March 1 are deemed delinquent. County trustees are allowed to receive property tax payments in installments, provided they first file a plan with the state Comptroller’s office that indicates the trustee's office has the technology to receive payment of property taxes on installment. The plan must also indicate whether the program is to be fully funded within the existing operating resources of the office or whether additional resources are required to implement the program. If additional operating resources are required for implementation, then the plan must indicate prior approval of the county legislative body. As property owners electing to pay on installment are still obligated to pay their property taxes in full by March 1, counties and owners utilizing this option are not in violation of the statutory prohibition on partial payments. There is no comparable provision in the law allowing cities and towns to accept payments of property taxes in this manner. Problem Some municipalities would like to provide citizens flexibility in budgeting for the payment of property taxes, but state law does not permit cities and towns to offer its citizens the option of paying in installments. Proposed Legislation Expand state law to allow municipalities to receive payments of property taxes on installment in the same manner as county governments. Benefits Expanding state law to include municipalities will allow property owners, in those municipalities implementing this option, to choose between paying their property taxes on installment and making a lump sum payment; affording property owners more flexibility in budgeting and in complying with tax obligations.
