Mitch Goldstein | Coach Mitch | July 31st, 2007Popular easier-to-digest school tax bill
Installment plan option mandated by Act 1 makes debut in many areas.
By Scott Kraus | Of The Morning Call
July 30, 2007
This summer, as always, the school tax man cometh.
But for the first time in many places, he can be turned away with only a partial payment.
Buried amid the myriad features of the state’s complex Act 1 property tax reform legislation is one gem some taxpayers may find helpful as their bills come due next month – creation of an installment payment option.
To take advantage, however, taxpayers must decide before their district’s first installment payment is due to forgo the 2 percent discount given those who pay their obligations in full before Aug. 31.
On a tax bill of $2,000, that equates to passing up a $40 savings.
Anecdotal reports from local tax collectors say not many are taking advantage of the installment plans…(some) district’s installment plans have been in place for years and are popular with homeowners who have trouble making a lump sum payment.
”The main idea [of the Act 1 provision] was to help senior citizens,”said Scott Shewell, spokesman for the Pennsylvania School Boards Association.
“It triples our work,” said Gilfert, who estimated about 15 percent of her taxpayers have opted for installment plans.
Phyliss Breininger, Heidelberg Township tax collector and president of the county association, said the new plans have been an administrative “nightmare” for her members.
Bader said the plans also may have some benefits. “Making it easier for people to pay means more people pay the base amount and less people end up defaulting,” Bader said.
For full article:http://www.mcall.com/news/local/all-b1_2tax.5967281jul30,0,4675945.story
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Coach Mitch’s REFLECTIONS
More and more, we are taking advantage of small, periodic payments to do our business.
This story reminds me of a particular situation that I run into any time I market to delinquent tax payers. You will also, and it behooves you to use the situation to make a friend of the tax collector and be a good guy, too.
I can’t tell you how many times I have spoken to delinquent tax payers who do not know that their taxes are delinquent! It is almost always a nice but dependent little old lady. She says some version of “I gave the tax money to my nephew to pay.” However, the nephew did not make the payment. He probably put the tax monies up his nose.
The little old lady does not want to lose her home, they can pay the taxes and there is no deal that you can make. But, even if you could make a transaction that is advantages to you – you shouldn’t – not with this set of folks.
The conversation
Whenever I run into a situation where the owner thought that they had paid the taxes, but it was not paid, I go into “solution mode.”
First, I calm the person down. “It’s OK. We still have time to fix this situation. I will help you.”
“Do you want to stay in the house?” if “Yes,” then “Do you have the ability to pay the back taxes?”
Usually they cannot come up with the several thousand dollars in one bulk payment. I ask, “Can you make a small, monthly payment?” If they can, then I say, “Great. I have a solution. Let’s call the tax collector and set up an installment payment plan – so you don’t lose your house.”The relief in their voice is very noticeable.
Then, the magic occurs.
I have maintained that in every tax collector’s office with which you do business, you must know the county personnel and their duties . Here is a good application of why it is useful to know which person does what task.
I do a three-way call to the appropriate clerk in the tax collector’s office and ask for the appropriate person. “Hello, Doris. This is Mitch Goldstein. Doris, I have another person on the other line who needs to pay on the installment plan.”
I connect the phone lines and introduce people and outline the situation. They are all the same – for some reason the tax monies were not paid and the payment plan is desired.
“Mrs. Smith had the tax money but her nephew didn’t make the payment. Now she doesn’t have the full lump sum to pay the taxes and she needs to pay a little bit at a time. She wants to stay in her home and I told Mrs. Smith that you could help in this situation. Doris, what can you do to help Mrs. Smith?” Even though I know what Doris will say, empowering Doris in this manner makes Doris feel good – always a good thing.
I make sure that Doris has Mrs. Smith’s contact info and that Mrs. Smith has Doris’ contact info and my info. Then I excuse myself. Before I go, without exception, Mrs. Smith is thanking me enthusiastically, saying things like, “I could have lost my house if it weren’t for you.”
This is great for the clerk to hear. Don’t be fooled, it gets around the tax office and all the way up to the Tax Collector himself. You are a “good guy.” Someone they can trust.
Taking account
I have helped the tax collector by increasing the counties cash flow and have prevented a tax default from potentially going into tax foreclosure, further increasing the counties cash flow by reducing the counties costs. Three big pluses.
And, in the mind of the tax collector and their staff, I have established myself as a real estate investor who is honest, caring, trustworthy and nice – not taking advantage of a “little old lady.” Quite the opposite of the typical “cold-hearted and calculating” vision most have of the real estate investor or landlord.
Does this accrue to your benefit? You bet!
The next time you would like to see the tax collectors file on a tax defaulted property – you will have access to that information, when others will not be able to see “work product.” It saves you a lot of work and informs you of conditions that you will not have known about. The preliminary title work is also usually available, as well as any skip tracing done to find the tax delinquent owner. This is inside information. It could be interpreted that they are breaking some rule by giving it to you. Don’t worry. They have other rules that cover any action they take.
This is an example of how you take a marketing call from “no sale” to “making lemonade out of lemons.”
See Coach Mitch’s “Ridiculously Simple System…” ™ for details.
Keep on plugging,
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