A proposal by Oxford Twp. Treasurer Joe Ferrari could mean one less tax bill for village residents and more than $1,000 in annual savings to the village government.
At last week’s council meeting, Ferrari proposed the township begin billing and collecting the village’s property taxes as part of its summer tax bill.
For this service, Ferrari suggested the township charge the village $1.50 per parcel ? the same rate charged to the Oxford and Lake Orion school districts.
‘Currently, both Oxford Township and Oxford Village send out separate tax bills (on July 1) and each individually bear the cost of the mailings, postage, administration and the like,? he said.
According to Christine Burns, the village’s clerk, treasurer and assistant manager, it currently costs the village approximately $2.0899 to generate one tax bill.
That includes postage, printing, two envelopes (mailing and return) and labor by the village treasurer and deputy treasurer.
With 1,787 parcels in the village each receiving a separate tax bill, it costs the municipality $3,734.65 to generate and mail them.
However, if the township placed the village tax on its regular summer bill and collected the monies, the annual cost at $1.50 per parcel/bill would be $2,680.50 ? a savings of $1,054.15.
‘In an era of tough economic times, this could be a tremendous savings for the Village of Oxford as current staff members could be utilized to address other village administrative functions,? Ferrari told council.
‘Why should two of us do the same thing? It would be a lot easier for (the township) to collect (village taxes),? the treasurer explained. ‘People come to one office. I pay you just like I do every other township taxing unit and you get your money twice a month.?
Ferrari noted how the governor’s ‘been saying to all of us ? find ways to cooperate.?
‘This is a good first step,? he said.
Council was very receptive to the proposal. ‘I think you’re absolutely right,? said Councilwoman Teri Stiles. ‘I think we need to find more ways to unify.?
‘I think it’s a terrific idea,? noted Councilman Chris Bishop. ‘Even if the savings is very minimal, it’s still a nice service for people in our community to only get one tax bill.?
Stiles asked Ferrari if taking on the village tax billing and collection process would result in any additional time or effort by the township staff.
‘Pretty much nothing,? Ferrari replied. ‘The only thing it’s going to add is three more lines to the tax bill.?
Stiles inquired about the interest the village would lose by not collecting its own taxes.
In his memo to council, Ferrari indicated, ‘The only amount the village would be giving up is any interest earned in the bank, which would be kept by the township to help offset its administrative costs, as is currently the practice.?
However, it was noted by both Ferrari and Bishop that the interest wouldn’t be a significant amount because the township pays out the tax money it collects for other units to those entities twice a month on the third and 18th days.
‘Usually we pay early anyway,? the Ferrari said. ‘We never wait till the last day.? Village officials can verify that with the school district, library and parks and recreation, he added.
Should the village agree to Ferrari’s proposal the issue of when property taxes are due will have to be addressed.
Currently, the village charter mandates taxes are due by Aug. 31 while the township’s summer taxes are due by Sept. 14. If residents do not pay their taxes by those respective dates, they incur penalties and interest, the amounts of which are higher in the village than in the township.
To help solve this discrepancy, Ferrari suggested the village could adopt the same penalty and interest schedule as the township for Sept. 15 through Feb. 28.
However, for Sept. 1-14, council could adjust its ordinance to make the interest and penalty rate 0 percent.
So, even though village taxes would still technically be due Aug. 31, there would be no penalties or interest as long as they were paid by Sept. 14 when township summer taxes are due.