Property tax delinquencies growing, a sign of struggle
More people are falling further behind on their taxes, figures from area counties show.
Taxes delinquent by at least a year rose by about 25 percent on average throughout the region from 2008 to 2009.
La Crosse County had almost $2.9 million owed on 755 parcels, up from about $2.3 million on 672 parcels the year before.
"There are people that have been laid off, lost their jobs. We hear it every day now," said county Treasurer Donna Hanson.
"It seems to me the people who are in trouble are getting further behind," said Rachel Hanson, treasurer for Vernon County, where the delinquent balance rose 26 percent last year.
In essence, counties function as banks, required by law to pay municipalities and school districts the taxes they are owed. The county then becomes the collection agency, charging property owners 1.5 percent interest each month they are late.
La Crosse County Administrator Steve O'Malley said the county collects enough interest to cover its costs.
"It means people are struggling. That's concerning," O'Malley said. "As far as our long-term financial picture, it's mainly a cash-flow situation. ... It's just the cost of doing business."
While more people are in trouble, O'Malley said, the problem is not as bad as in New York, California and Nevada, where the burst housing bubble created widespread bankruptcies.
A surplus fund balance ensures the county can meet its obligations to municipalities and schools.
After two years, the county can begin foreclosure proceedings, although treasurers say that rarely happens.
La Crosse County last year took seven properties, about
10 percent of the number of foreclosures filed, Hanson said.
Monroe County's delinquent taxes saw the biggest one-year increase in this area, jumping
56 percent. But treasurer Annette Erickson said taxes on one property - the moribund Three Bears Resort in Warrens - accounts for about half of those unpaid taxes.
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