Unpaid taxes are hard to find in Stowe

Three years ago, when Stowe closed the books on the fiscal year, only 12 bucks was unaccounted for.

How property-rich is Stowe? Last year, the town’s grand list, the sum value of all taxable properties in town, was $2.07 billion, third-highest in the state after Burlington and South Burlington.

Stowe collects property taxes on a quarterly basis, and the “Taxes Due” sign that’s placed on the front steps of the Akeley Memorial building four times a year is a reminder that most people in town take seriously.

There’s a reason Stowe carries small, three-digit delinquencies in its eight-figure tax obligations: If a property owner doesn’t pay the taxes, the person who scoops it up for a song at tax sale will.

“Here, because we have such high property values, and a large amount of taxes that are collected, it’s in our best interest, and the property owners’ best interests, to not let it get out of hand,” Kaiser said.

“Being a year past due can be pretty significant, so we’re not doing anybody any favors letting this drag on, especially if we have to raise taxes because we can’t collect on the taxes owed to us.”

May 11 was the last quarterly property tax payment due date of this fiscal year, which ends June 30. As of press time, there was $941,000 still uncollected, but that number is quickly going down; it’s already $200,000 less than it was just a week ago.

While a reporter hung out for just a few minutes in the town clerk’s office on Tuesday, at least two people came to the counter to pay their bills.

“We collected that $200,000 just by sending out the letters” that their properties might be up for tax sale, Kaiser said.

Stowe’s delinquent tax policy is both stricter and more lenient than some towns. On the one hand, the 2004 policy states that, if taxes are one year past-due, the property will go up for tax sale, available to the highest bidder. Those tax sales are held every quarter, about a month after the last tax collection deadline, and Kaiser said it’s a pretty good incentive to pay up; only three to five properties go up for tax sale each quarter.

On the other hand, Stowe doesn’t assess a late penalty, instead levying interest of 2 percent a month across the board. Some towns are harsher with their penalties, and the state, for instance, assesses an 8 percent penalty, and then 1 percent interest per month.

“That just seems too much for the person who is a day late paying,” Kaiser said.

As of press time, of the $941,000 still owed the town, the majority — $635,563 — comes from delinquent fourth-quarter taxes, which were due May 11. There is also $147,500 still due from the third quarter, $108,000 from the second quarter, and $49,000 from the first.

Stowe’s delinquency policy states the town applies any payments to the oldest delinquent quarter first. Kaiser expects that, with just a month left in the fiscal year, almost all the remaining money will be paid, either by the property owner or someone picking it up at tax sale.

A tax sale is open to the public, and anybody can attend.

During the sale, the high bidder buys the property and pays the town, through its attorney, who deducts the taxes owed and puts the rest in an escrow account.

Even if a property is sold at a tax sale, the high bidder doesn’t own the property until after a year, during which the property owner can buy the property back using that money in the escrow account, plus 1 percent monthly interest, plus those delinquent taxes the high bidder took care of.