Budget limbo delays tax bills

0
56

NAUGATUCK — The Naugatuck Tax Collector’s office has not been able to send out the first half of motor vehicle tax bills because of a delay in the budget process.

If that process is delayed beyond Dec. 31, there is a chance residents may not get a tax credit on their income tax returns for paying motor vehicle taxes in 2014 because they would not be paid until next year.

Tax Collector James Goggin said the borough could rectify the problem by sending out motor vehicle tax bills using an estimated tax rate. That process would need to be approved by the Board of Mayor and Burgesses, he said. It would also come at a cost of thousands of dollars because Naugatuck would have to send rebates to people if it turns out they overpaid, he said.

“Anything can be done, but there are costs associated with everything we do,” Goggin said. “I want to make it clear, though, that we will do whatever we need to do to get it done in the tax office, and get it done on time without using overtime.”

While Naugatuck recently went toward a process of sending out split motor vehicle tax bills, some people pay them all at once to get a bigger write off, Goggin said.

Another potential effect of not having a budget by the end of the calendar year is that the borough cannot send out real estate tax bills to residents who are on the state’s circuit breaker or tax-freeze program, which affects about 100 senior citizens in Naugatuck, he said.

The borough does not send out the first half of real estate taxes to those people, because Naugatuck must wait on the state to make adjustments to their bills. Again, the borough could come up with an estimated bill and then give rebates to anyone who overpaid, if the Board of Mayor and Burgesses approves the process, Goggin said.

The municipal and school budget proposals are going to referendum for a second time on Oct. 14. The first budget proposal was defeated at referendum over the summer by wide margins.

Residents petitioned to force a second referendum because they did not believe borough officials cut enough from the budget to make it palatable for taxpayers, according to Matt Katra, a former Board of Finance member who is a driving force behind the petition drive.

The questions on the ballot will be, “shall the town operating budget be set at $52.49 million,” and “shall the Board of Education budget be set at $61.1 million.” Voters can answer yes; no: too high, or no: too low.

The budget proposal would bring the tax rate to 44.67 mills, down from 44.8 mills in fiscal year 2013-14, which ended June 30. A homeowner with a house assessed at $121,131 would pay $5,410 in the 2014-15 fiscal year, or $16 less than in the 2013-14 fiscal year.

If the budget proposals fail, it is possible that another referendum will not be held until January, as it takes two weeks for the petitioners to get signatures, another two-to-four weeks for the borough to verify the signatures and another two weeks before a referendum is held.