Property tax collections appear to be on course for the moment, but it will be another month before Laconia truly knows the full extent of delinquent payments following the economic downturn associated with COVID-19.
“We seem to be on track,” City Manager Scott Myers said.
But Myers pointed out that it will be another six weeks before the city has an accurate accounting of whether the amount of unpaid property taxes is greater than in past years.
Typically the city’s property tax delinquency runs about 3%, Myers said.
Based on the budget for the current fiscal year which ends June 30, the total amount of property taxes that are due by the end of the month amounts to about $2% percent being about $700,000.
Myers noted that the city does not receive property taxes paid through escrow accounts until the very end of month. Last year about 10 percent of the taxes owed were delinquent as of the July 1 deadline, but that most of those overdue taxes were cleared up during July, leaving a delinquency between 3% and 4% come Aug. 1.
Myers said the city could absorb a property tax delinquency as high as 20% and be able to meet its financial obligations with its reserves.
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