Promising News - Tax Title Review
At last night's BOS meeting, Town Administrator, Bob Markel provided the board with an update on the tax title proceedings:
"There are 125 tax titles that total $1,417,948.25 (when including the interest and fees listed on the report).
Of this list, it appears that 22 of the tax titles totaling $549,704.92 or 39% of the total relate to the American Tissue Mills situation so are unlikely to sell at a tax title sale although we should discuss this further to make sure that Tallage understands this situation in more detail.
Of the remainder, Tallage would likely bid on between $300K - $500K of the current tax title list if Templeton were to have a tax title sale. Remember that 30-40% of the tax titles that you publish for sale are likely to redeem or enter into a payment agreement prior to the actual sale so the total eligible pool to bid on dwindles as tax titles redeem or are removed prior to sale. Please also note that we have only done our initial desktop underwriting and we would still conduct our legal, title, environmental, bankruptcy and on the ground market work if Templeton decides to move forward with a tax title sale.
Of this list, it appears that 22 of the tax titles totaling $549,704.92 or 39% of the total relate to the American Tissue Mills situation so are unlikely to sell at a tax title sale although we should discuss this further to make sure that Tallage understands this situation in more detail.
Of the remainder, Tallage would likely bid on between $300K - $500K of the current tax title list if Templeton were to have a tax title sale. Remember that 30-40% of the tax titles that you publish for sale are likely to redeem or enter into a payment agreement prior to the actual sale so the total eligible pool to bid on dwindles as tax titles redeem or are removed prior to sale. Please also note that we have only done our initial desktop underwriting and we would still conduct our legal, title, environmental, bankruptcy and on the ground market work if Templeton decides to move forward with a tax title sale.
Additional information:
Of the entire list, 54 of the tax titles (43%) are considered Land of Low Value ($20,500 or less for 2014). The Land of Low Value tax titles account for a total of $124,648.75 or just under 9% of the total tax title amount owed including interest and fees. While a company like ours is likely to bid on a few of these at a tax title sale, and others may redeem or enter into payment agreements as a result of the tax title sale process, the best way to clear these from your books is by working with your assessor and going through the DOR land of low value process...."
Of the entire list, 54 of the tax titles (43%) are considered Land of Low Value ($20,500 or less for 2014). The Land of Low Value tax titles account for a total of $124,648.75 or just under 9% of the total tax title amount owed including interest and fees. While a company like ours is likely to bid on a few of these at a tax title sale, and others may redeem or enter into payment agreements as a result of the tax title sale process, the best way to clear these from your books is by working with your assessor and going through the DOR land of low value process...."
Bill Cowin
Tallage, LLC
Tallage, LLC
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So what's the down side? There is none! Templeton would finally collect the money it is owed in taxes. This is one-time money and should be treated as such. Whatever money is garnered by this process may be certified as Free Cash by the DOR for FY 15. This is good news!
One suggestion would be to use this money to reduce the outstanding balance owed on 252 Baldwinville Rd. Eliminating that debt will ultimately free up money for recurring expenses within the town budget.
ReplyDeleteThis is the only way I can see for the town to get ahead of the game. For to many years, the town has run on a wing and a prayer. Year after year the town spent money it did not really have. Prior boards, and I am saying way back to the seventies had to be aware of this problem but did not have the gumption to tell the truth to their town's people. How anyone thought this problem was going to be solved is beyond me. 252 was the straw that broke the camels back, and it would have killed him out right if we had listened to Mr. Skelton and dumped another million or two into a losing project. This town is not out of the woods by a long shot, and in the need to please their town's people, the Selectmen can not go back to giving any Department more than we can afford. The Senior Center will have to find it's own way in getting the money it needs to finish it's project, and I know they can do it. We have to have a "new normal" like it or not. We have to pick and choose what we can do like our lives depend on it, and they do. What the elderly, and you do not have to be old, old, can afford to pay for taxes is getting up there, along with the families with three or four kids. Remember some of these people moved here because they felt they could afford to live here and have a safe community for their kids to live in. We are on the right road to getting our house in order, but it is not in order yet and may not be for a good long time. Bev.
DeleteMark, you are right about getting rid of some of the debt we have accumulated through out the years. These are the things that have hurt us the most. All of that interest on our wonderful 40 year loans are a killer. They just drag on and on, and cost us more and more. Please remember when someone tries to suck you in to another good deal at town meeting, don't forget to ask" for how long ??" If you don't watch out for yourself no one else is going to !! A five or even ten year debt exclusion is a hell of a lot better than paying forever and forever. Bev.
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ReplyDelete"OH BOY", as Pauly would have said. Look at that 1.000,769 !! And no one reads the blog, hee hee
DeleteI can hear Pauly too Bev, hee hee I think I was #5 or #6 on the following list and I told everyone I knew about his blog. getting owed taxes is def a step in the right direction. after it is collected the BOS need to ensure that it will not be spent foolishly. using it to pay off debts that the town has is the way to go in my opinion. not to purchase new equipment for the town or giving it to the school. seems to me that if the superintendent has the funds to hire a consultant then the school dept. must have enough funds for teachers, supplies and extra curricula activities.
ReplyDeleteSeems like that may be just about right. Bev.
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