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Tax Collector Faces Pressure Over Suspended Business Debts

June 03, 2024 | Middletown, Middlesex, Connecticut


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Tax Collector Faces Pressure Over Suspended Business Debts
During a recent government meeting, officials discussed a suspension report from the tax collector regarding uncollected business taxes dating back to 2008. The report, which surfaced shortly before the meeting, highlighted a total of $207,331 in suspended amounts, primarily from personal property taxes of businesses that are either defunct or untraceable.

The tax collector explained that the city has been actively attempting to collect these debts but has faced challenges due to the closure of many businesses and the inability to locate individuals responsible for the debts. As a result, the city has resorted to writing off these amounts annually, with approximately $200,000 being written off each year.

Officials noted that the process involves contacting businesses to determine their viability. If a business is found to be non-operational, the case is handed over to attorneys for further action. However, concerns were raised about the timeliness of these actions, particularly regarding businesses that have been on the list for several years without resolution.

The discussion underscored the ongoing struggle local governments face in managing tax collections, especially in a fluctuating economic landscape where many businesses may not file necessary declarations or may cease operations without notice. The meeting concluded with a commitment to continue pursuing collections while addressing the procedural gaps that have led to the accumulation of these long-standing debts.

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