Property Tax Shortfall Recovery
The accounting firm of C.L. Coonrod & Company has agreed to provide financial guidance & solutions to us related to shortfalls and temporary cash-flow issues.
Property Tax Shortfalls are Common, and There is a Way to Recover the Revenue!
Townships often do not receive the full amount of property tax revenue that was approved in the original budget.
Always compare the amount received to the amount in the budget. You will often it is less.
Some of the differences may be due to circuit breaker credits and delinquencies by taxpayers. There is not much you can do about those.
But there are other causes, and your township may be able to recover the shortfalls.
Property tax billing is not an exact science. At the time property tax is billed in the spring, the County does not yet know the exact amount of assessed value. That is in part because taxpayer appeals and other adjustments may occur after the billing.
If these adjustments cause your township to collect less than the amount that was approved by your board and the DLGF, your township can probably recover the shortfalls. Generally, the recovery can go back five years.
Here is the process: first the shortfall must be identified and documented, using records available from the county auditor. Then the shortfall must be advertised and included in the next township budget, and forms must be filed with DLGF.
At no charge to your township, ITA can help determine if your township has experienced a property tax shortfall.
If so, ITA can then help with the recovery.
Contact ITA if you believe your township may have had a property tax shortfall in recent years. Do it soon, so it can be included it in the next budget.