May 10, 2012

4th Quarter Tax Bills

Think I am getting this right but all you Commercial Real Estate owners have received 3 quarterly tax bills based on the old assessed value.   The 4th qtr bill that is coming up to wrap up the City of Worcester 2011-2012 fiscal year will reflect the new assessed value.

Not only will your 4th bill reflect the new value but you will have to make up the difference for the the three prior bills that were not billed at the correct amount.    In other words the other shoe has not dropped yet.  


Steve Foley said...

The cash-strapped city will probably charge interest and late fees on the underpayments for the first three quarters.

Jahn said...

Steve I dont think they can charge interest until you're late which is usualy May 1st, but this yr it will be 30 days from the date the bills are mailed. My understanding is that no interst can be charged until that 30 period has passed.

On the other side of the equation is how much in interest expense is it costing the city per day b/c the city has had to borrow (or not pay down loans) that they have out in anticipation of the usual May 1st cash infusion the trerasury receives.

I Made a SWAG of between 2,000 to 3,000 per day. Never a peep out of the CC b/c too few or or none of these folks think like everyone else who has bottomlines to meet, be it business, household, or nickel can collector.

Gud weakend two awl

Jahn said...


My thinking is the CC will act only when they are certain the tax bills will arrive after the last regular CC meeting before the summer schedule kicks in which will probably be June 25th so they not be in session again until about July 25th after which some of the fallout will have subsided.

This is the Same motis operandi they use in "normal times" to set the rates after the Nov. council elections which delay they always blame every single year on teh state DOR being slow getting the certifications back to city. Come on now, we're not all mushrooms