A Twin Cities trend toward fewer delinquent property-tax payers continued this spring.
Auburn Tax Collector Nancy Bosse said she emailed 580 late notices to taxpayers in May. Those notices warn taxpayers that they have 30 days to settle their bills before the city files a lien on their property.
That’s down from 635 notices mailed by the Auburn tax department in May 2012 and from 663 notices mailed in May 2011.
In Lewiston, Tax Collector Pamela LaBelle said she mailed 758 30-day lien notices to delinquent taxpayers. The department mailed 778 notices in May 2012 and 824 in May 2011.
“It looks like the number of delinquent taxpayers is shrinking, and that’s good news,” LaBelle said.
The 30-day notices are the first step in the lien process. Maine law gives property-owning taxpayers 18 months to cure the unpaid property taxes.
If the debt remains unpaid after the lien expires, the city can begin the process of foreclosing on the property for unpaid taxes.
Auburn Finance Director Jill Eastman said the trend demonstrates changes in the economy, but it might also represent different ways people pay their taxes today.
“More and more people pay their taxes with escrow accounts now,” Eastman said. “A lot of banks are simply requiring escrows now as a part of their loans.”
Escrow accounts let residents pay portions of their tax bills monthly, as part of regular mortgage payments. Their banks put the money aside in escrow accounts, paying the city taxes due on the property in one lump payment.
“They don’t have to worry about paying their taxes,” Eastman said.
Delinquent property tax payments
As of May of each year:
Lewiston
2011: 824
2012: 778
2013: 758
Auburn
2011: 663
2012: 635
2013: 580
Comments are no longer available on this story