Late payment of property taxes hurts schools, governments

For Jackson County, that works out to about $500,000 fewer tax dollars collected through June in 2009 than at the same time last year. For the cash-strapped Jackson County School System, that’s a cash flow challenge amounting to $725,000 (not counting bonds), and the Commerce School System is about $56,000 down in collections from this time last year.

According to tax commissioner Don Elrod, his office has collected 94.19 percent of the 2008 total tax levy. Typically by the end of June, collections are at the 97-percent level.

Late taxes cause problems. The Jackson County Board of Education has used a tax anticipation note to borrow against its 2009 levy, for example, and that $725,000 reduction in cash flow from delinquent 2008 property taxes means $775,000 more it has to borrow - and pay interest on - until the 2009 taxes start coming in and the cycle starts all over again.