By Natalie Bazinet
Staff Writer
CARIBOU — The Caribou City Councilors agreed to keep two tax-acquired properties in the hands of their original owners by waving the interest on owned taxes, waving lien costs and allowing the city’s finance director to work out a payment plan with the current occupants.
While the council agreed that they did not want to put anybody out on the streets, Councilor Gary Aiken posed an question to his fellow councilors: “so there’s no incentive for me to pay my taxes really, is there?”
Aiken posed his question after a long discussion during the Aug. 13 City Council Meeting pertaining to two tax acquired properties in very similar states; as such, conversation centered around the numerically first property on the agenda.
As discussed by the council, the first property was acquired through a tax lien in 1999; interim City Manager Margaret (Peggy) Daigle estimated that the property owner probably hadn’t received a tax bill since 2001.
“Once we do the tax acquired process, than if the tenant still resides there or not, they would not receive a tax bill because, technically speaking, [the city] is in receivership of that property — we can’t tax ourselves, and we can no longer tax [the individual],” Councilor Philip McDonough explained.
“There is a time element involved here and I now we have a policy, but we’re outside that envelope and I don’t want to do the wrong thing; if there’s a correction that can be made, then maybe the best thing to do is to table this particular issue [and the other property in a similar situation] until we can get those questions answered and then put things in the proper perspective,” McDonough posed.
Extra concern was placed on discussed property particularly since the town had already put the property out to bid — and the city received a bid for it.
Daigle explained that the council’s current policy on tax-acquired property allows them to waive or reject the bid.
“It’s entirely up to the council; it’s at your discretion whether you accept these bids,” she emphasized, explaining to the council that while she’s sure the bidder would not be happy about not getting this property, the council does have the authority to waive or reject the bid.
“Generally with tax acquired properties, it’s a lot easier to deal with the vacant ones,” Daigle added. “Councilors have often felt uncomfortable about displacing people currently living there and they wanted to have some means of being able to deal with their present owner, and I’m sure that’s why it’s written in the policy this way.”
The agenda item for the first property included a request from the Finance Director (Wanda Ouellette) that “the city council reject this bid and allow her to work with the current owner-occupant on a payment plan;” the second property of discussion had also gone out to bid, though the city had not received a bidder for it.
Daigle expressed to the council that she believes it will be a short window for the payment plan Ouellette will formulate for the first property.
As the council’s discussion regarding the two tax acquired properties neared its close, Aiken asked the council’s senior members if historically interest and lien costs have been waived before.
Councilor Mary Kate Barbosa answered “on occasion.”
That’s when Aiken questioned ones incentive to pay his taxes.
“I think that the point is the city gives the occupant every opportunity to come good,” said Mayor Kenneth Murchison.
For the first property, the council agreed to waive all interest and lien costs ($2,567), rejected the bid made on the property, and allow the finance director to work out a payment plan with the occupant for $7,898 owed in back taxes.
For the second property, the council agreed to waive all interest and lien costs ($1,825) in exchange for the full payment of $5,422 and issue a quit claim deed upon receipt of payment in full; Daigle expressed to the council that she would informed the councilors when the property was fully paid.
During the meeting, the board also regretfully accepted the resignation of Jenny Coon, director of the Caribou Area Chamber of Commerce as of Aug. 29.
The next meeting of the Caribou City Council is scheduled for Tuesday, Aug. 28 at 7 p.m. in the Councilors Chambers of the Caribou Municipal Building.
