KINGSTON – Ulster County Comptroller March Gallagher has released the findings from a real property tax collection audit recently completed by her office.
“Weak internal controls have resulted in a situation where properties and financial obligations were mismanaged at best,” said Gallagher. “The Comptroller’s Office cannot at this time assure the public that no theft occurred in the collection of real property taxes, however, we are continuing our review of tax collections and the information kept between multiple systems.”
Gallagher’s inability to assure the public that no theft has occurred in the collection of real property taxes follows a report that revealed several inadequate tax collection practices and made recommendations for future improvements.
First, according to the report, the county’s untimely property tax payments on properties held in its own name resulted in unnecessary interest and penalties of at least $269,000.
The report also indicated that transactions recorded in the unpaid tax systems did not match up to the county’s financial system as information systems are not integrated or reconciled. Gallagher’s report indicated that this leaves the potential for theft.
The report also found that properties were inappropriately withdrawn from the county’s foreclosure process, delaying tax collection on certain properties by as much as a decade. That allowed unnecessary interest and penalties to accrue.
The comptroller also found that the county made an error in the calculation of interest owed to the City of Kingston School District on tax-foreclosed properties, resulting in a significant overpayment from Ulster County to the school district on multiple properties.
Gallagher said the county is moving toward solutions for many of those issues, including the purchase of new delinquent real property tax software, a new property disposition policy, and improved procedures around the timely and correct payment of taxes for properties owned by Ulster County.
Her office also reported the county has recovered a repayment of $379,199.21 from the City of Kingston School District for the overpayment previously made.
“Tax collection is one of the most sacrosanct responsibilities of government,” said Gallagher. “I am relieved to be able to share with taxpayers and elected officials both evidence of our shortcomings as well as solutions in concert with the executive and the legislature.”
