Delinquent homeowners owe Sussex County nearly $1 million in taxes and $1.5 million in water and sewer fees. Nearly $6 million is owed to county school districts. In an effort to reduce that pile of money, county council has adopted a more aggressive collections policy and hired the county’s first collections manager.
Susan Webb, finance director, said collecting unpaid bills is an ongoing issue exacerbated by tough economic times.
Under the updated policy, the county will send stern letters to those in arrears from the county attorney, post delinquent accounts on the county website and offer amnesty for some penalties if an account is paid within 30 days.
Currently, the county charges 1.5 percent interest per month on unpaid tax bills and 1 percent interest on unpaid water and sewer bills.
“This has been a problem growing over the years,” said Council President Vance Phillips, R-Laurel. He said the hiring of a collections manager would more than pay for the position.
Council approved the upgraded policy 5-0 at the Tuesday, Sept. 22 meeting.
While emphasis is placed on collecting delinquent county funds, county attorney Everett Moore said all efforts should be made to collect unpaid school taxes as well.
County Administrator David Baker said the county has made efforts to collect unpaid bills. More than 1,000 payment agreements have been established. Phone calls, letters and warnings are made in an effort to collect payments. A county constable checks on properties.
After two years, liens are placed on delinquent water and sewer accounts. Liens are placed on delinquent tax accounts in two and 10-year intervals.
Nearly $1 million in back taxes is outstanding in the Cape Henlopen School District, while $1.8 million is owed in the Indian River School District.
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