Rep. Elias Barela has introduced a bill at the legislature that would give Valencia County and other counties around the state more authority to collect delinquent property taxes.

The bill — HB153 — amends existing tax law. It was written in collaboration with Commissioner Pedro Rael, who said he’s been working on it for two years.

“We’re trying to do something that would tighten up our tax laws, correcting our property tax laws — not to increase them or decrease them. There’s absolutely no change in the taxes, but it allows the counties a way to collect the taxes,” Rael said.

He said Valencia County has had problems collecting delinquent taxes, carrying the delinquencies over from year-to-year, snowballing to more than $6 million.

“With a county budget of $12 to $13 million a year, that’s a pretty big number,” Rael said.

For example, Valencia County’s highest property tax debtor has been the Valley Improvement Association, which at one time was estimated to owe the county just shy of $1 million.

According to Rael, Barela’s bill would give counties the authority to collect delinquent taxes, a task typically left up to the state. He calls it a “local option,” because county commissions would need to adopt the authority by ordinance.

Counties would also be able to collect from the delinquent taxpayer any costs they incur while trying to collect the delinquent amounts, including research fees, court costs and attorney fees.

The bill also allows the county to deny a delinquent taxpayer a permit, license or any other action or item the county already has the authority to approve or deny.

The amendments in the bill also change the time frame for attempting to collect delinquent taxes. Instead of having to wait two years to attempt to collect delinquent taxes, the counties and state would be able to work immediately to collect any taxes that become delinquent.

This page was published on January 26, 2010 at 12:47am and is filed under Reform.