Property Tax Payment Hardship Grace Period

This proposal relates to tax payment fee waivers. See more information, including the video summary, here.

Section 1. Purpose

To provide a limited, one-time grace period for residents facing a documented, short-term delay in receipt of income (including but not limited to Social Security, pension, or disability benefits) that prevents timely payment of a property tax installment, while preserving the Town's interest in consistent and predictable tax collection.

Section 2. Eligibility

An applicant must meet all of the following:

  1. No delinquency history. The applicant has had no delinquent property tax payment in the preceding three (3) tax years, as verified by the Tax Collector's office from existing municipal records. The applicant is not required to submit proof.

  2. Documented cause. The delay is attributable to one of the following, with supporting documentation attached:

    • Documented delay in receipt of Social Security, pension, disability, or other regular fixed income payment

    • Bank or financial institution error

    • Death or documented serious illness of the taxpayer or immediate family member

    • Other cause at the discretion of the Tax Collector, consistent with the spirit of this section

  3. First use. The applicant has not previously been granted a waiver under this section, or has not been granted one within the preceding three (3) years following a forfeiture under Section 4.

Section 3. Application and Grant

  1. Application shall be made on a one-page form provided by the Tax Collector's office, requiring only: taxpayer name, parcel/account number, reason for request (selected from the list in Section 2.2), and one supporting document.

  2. The Tax Collector shall verify payment history under Section 2.1 and review the application administratively. No hearing or council vote is required.

  3. If approved, the taxpayer shall be granted a grace period of fifteen (15) calendar days from the original due date, during which the installment may be paid without accrual of interest or penalty.

  4. Approval or denial shall be issued within five (5) business days of a complete application.

Section 4. Failure to Pay Within Grace Period

If the taxpayer does not pay the installment in full within the grace period granted under Section 3.3:

  1. Interest and penalties shall be reinstated retroactive to the original due date, calculated as though no grace period had been granted.

  2. An additional forfeiture fee of [$___ / __% of the installment] shall be assessed.

  3. The taxpayer shall be ineligible to apply for a waiver under this section for three (3) years from the date of forfeiture.

Section 5. Administration

The Tax Collector shall maintain records of all applications, approvals, denials, and forfeitures under this section and shall report annually to the Town Council on the number of applications received, approved, and forfeited, without disclosing individual taxpayer information.

Section 6. No Waiver of Underlying Tax

Nothing in this section waives, reduces, or abates the underlying tax obligation. This section governs only the temporary deferral of interest and penalty accrual on a single installment.