Momentum - Business to Business Online Magazine Momentum May 2017 | Page 19

Taxing Matters TAX Gaffe By: Cheryl E. Johnson, PCC Galveston Co. Tax Assessor Collector [email protected] E veryone is familiar with the annual delivery of 190,000 love letters from the tax office, some the first round of delinquent notices mailed in February and fewer (thankfully) the second round of delinquent notices mailed in May. And then, in July, our law firm sends a far less kindly demand for payment. How do you avoid a tax giraffe – excuse me – a tax gaffe? For space purposes, basic rules and common errors are listed below. RULE #1: If you receive mail from us – OPEN IT! Do NOT assume it is a receipt and that you won’t need it until April 15th. Costly penalty and interest accrue on unpaid balances that may occur due to a payment error. RULE #2: Failure to receive the statement does not absolve you from responsibility. RULE #3: If you had a late value reduction or exemption approved and are waiting for a corrected statement, you will not be given additional time to pay so don’t delay. RULE #4: Don’t wait until the last minute to pay. Your bank’s online bill pay does not mail payments immediately. A payment dropped in a USPS box may not receive a timely postmark. Our online system may get bogged down because thousands are hanging on to that money as long as possible. We can and will research system failures if they happen and will do all that we can to help . RULE #5: If you postdate a check, we will deposit it so make sure funds are available when you send the payment. RULE #6: If you purchase a business, there are likely multiple accounts (the real property and the business personal property account). Call us if in doubt. If you close a business after January 1st, you will owe taxes the ENTIRE year! Do not throw away the statement as you are personally liable whether you closed the business or purchased someone else’s and the taxes were not paid. Common payment gaffes include: • The numerical/box amount doesn’t match the written/legal amount • The check was unsigned • An online payment was not fully completed because the bank account or credit card number was typed incorrectly • You intended to pay multiple accounts but omitted an account (you may even have received a refund because we could not locate an account in the same name) or multiple years were included but not noted • You paid the wrong amount & a balance remains • Disaster, quarter or split payment options are not available (perhaps you lack the proper exemptions or already missed a deadline to take advantage of it) Common purchase/loan closing gaffes include: • The address on the deed was wrong • The taxes were estimated (using the prior year tax rates) & was low or the previous owner’s exemptions were removed resulting in a higher bill • The buyer was credited with the taxes at closing and did not realize it was their responsibility • An exemption was applied for but not approved Other common gaffes: • You recently refinanced a loan/paid off a mortgage (sign up for e-statements to insure you receive the statement or mark your calendar, • The wrong mortgage company requested and paid the bill and later requested a refund leaving you with levy, penalty and interest due • You moved and changed the address with the USPS but not the CAD. It is your responsibility to notify the CAD of any changes Regardless of the cause, the first delinquent notice is mailed in mid- February with 7% penalty and interest (P&I) added. There is not much we can do about P&I being waived if you fall into the categories above but will try by emailing or mailing a P&I packet and taking it to a committee to review. Please understand that hardship is not a legitimate reason to not pay your taxes. If you are struggling, allow us the opportunity to get you set up on a pay agreement – on a homestead we can slow the penalty bleeding and the sooner the better! Although the world anxious awaited the birth of April’s (the giraffe) calf, a tax giraffe, excuse me gaffe, is not something to be excited about. Despite the fact that we are the government – in the Galveston County Tax Office we REALLY ARE here to help so give us a chance to try!