Collecting city taxes

The City of New Albany has done the fair thing in agreeing to pay more money to Union County for collecting city taxes.

The Board of Aldermen decided Tuesday on a 4-1 vote to pay 1.5 percent of city taxes collected to the county for handling the collection. That will amount to about $60,000 this year, instead of the $50,000 the city has paid in the past.
Years ago the city agreed to pay the county $50,000 to collect the taxes for one year and then convert to a percentage system in the second year. But the conversion never happened.
Currently, tax collection is handled by the office of Randy Dunnam, tax assessor/collector and city taxpayers receive only one bill.
Ward Two Alderman Johnny Anderson, who voted against the increase, asked if the city would be better off collecting its own taxes.
“The convenience to our citizens is a good thing, to be able to go to one place and pay all of our taxes. But I wonder if it’s worth paying the higher percentage?” he asked.
Mayor Tim Kent said the cost to the city of collecting its own taxes would add up quickly because the city would have to hire its own tax collector and print and mail its own tax statements.
We agree with the mayor. Taxes are now collected efficiently and citizens don’t have to deal with two bills from two different places. And the city is spared the expense of maintaining a staff, safeguarding the money and handling the tax complaints.
To us it’s a no-brainer. The percentage is reasonable and it’s what the city should have been paying for years.

About Chris Elkins

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