TOLEDO, OH (Toledo News Now) - The City of Toledo continues to ramp up efforts to collect delinquent income taxes.
Over a 5-year period the Department of Taxation estimates $25 million remains outstanding, with half of that amount being penalties and interest. That's money which could go towards paying for cops, firefighters and road repaving.
In 2010 the city implemented a wage garnishment program. That year the city collected $3.5 million in delinquent taxes, with $815,000 coming through garnishments.
In 2011 delinquent collections totaled $4.7 million, with $2 million coming through garnishments. Through April, 2012 the totals are $1.8 million/$817,000.
"In addition to the garnishment tool we also have access to IRS data which gives us the ability to discover a delinquent taxpayer a lot sooner," says Clarence Coleman, Toledo Commissioner of Taxation.
"We've added staff. We've added attorneys and we've streamlined our processes and I think we've seen the results of that with growth in each of the past 2 year," says Patrick McLean, Toledo Finance Director.
Considering the entire taxation department budget for 2012 is $2.1 million, taxpayers are seeing a return on investment to boost staff to collect delinquent taxes.