OLEAN, NY — The Common Council will hold a special meeting on Tuesday to consider a proposal that extends the deadline for property tax payments. If approved, the collection period beginning on May 1 would be extended from May 31 to June 30.
“People are losing their jobs, and we need to be cognizant of that. We need to be compassionate and do whatever we can as an organization,” Ward 5 Alderman John Crawford said.
According to Crawford, approximately 60% of the city’s tax revenue comes from escrow account payments, which are the portions of mortgage payments set aside in advance to cover property taxes. The other 40 percent comes from property tax payments that residents pay on their own.
Crawford mentioned how escrow accounts would still create cash flow while residents get the extra time they need to pay the rest.
“Banks are going to pay so it's not like we're going to go with without that cash flow for an extended period of time…. It’s the other 40% of the taxes that they get a little additional time to help come up with their money,” Crawford said.
Payments made after the 60-day period will incur a penalty calculated at 2% after July 1, 3% after Aug. 1, 4% after Sept. 1 and 5% after Oct. 1.
This change only applies to 2020 tax payments.
The meeting will begin at 5:30 p.m. in the Council Chambers of the Olean Municipal Building. It will be closed to the public as a COVID-19 precaution. The meeting will be audio recorded and available on the city's website in the days following.
For more information on the Coronavirus in the Greater Olean area, visit TAPinto Greater Olean's Coronavirus Updates page, which is updated continuously.
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