All-County Taypayers Association

"The price of freedom is eternal vigilance...
Let the eye of vigilance never be closed."
          
- Thomas Jefferson

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WE HAVE A CONSTITUTIONAL RIGHT TO PAY OUR TAXES AT ANY TIME

NOTE: In response to complaints we were receiving about unfair tax collection practices, Bob Schulz brought a lawsuit against his tax collectors and those procedures.

On or about September 1, 1997, Bob Schulz received his school tax bills for land located in the Town of Fort Ann and in the Lake George Central School District. The total tax due was $3,407.04.

The revenue to be received from Schulz by the Lake George Central School District would be used by the School District to operate the District during the 1997-1998 school/fiscal year which runs from July 1, 1997 through June 30, 1998.

The tax bills informed Schulz; if payment was received by September 30, 1997 there would be no penalty; if payment was received by November 2, 1997 there would be a 2% penalty; and if payment was received after November 2, 1997 the penalty would be 3%. The tax bills did not specify a period of time, beginning November 3, 1997, during which Schulz could make payment (with 3% penalty) nor what would happen to that tax and penalty if not received during that period.

The school tax bill did not indicate how long after November 2, 1997 Schulz had to pay his school tax before the 3% penalty was increased further. NOTE: Schulz was unable to pay the tax until December 8, 1997.

On or before November 15, 1997, the Lake George Central School District had compiled a record of "unpaid 1997-1998 school taxes."

On or before November 15, 1997, the Lake George Central School District delivered to the office of the Washington County Treasurer a computer generated record of "unpaid 1997-1998 taxes," imposed on land located in the Washington County Town of Fort Ann. All of Schulz’s "unpaid 1997-1998 school taxes" were included in that record.

On December 8, 1997, Schulz was able to pay his school property tax bill (with penalties) in full. On or about December 8, 1997, Schulz telephoned the office of the Washington County Treasurer and spoke to a clerk. Schulz told the clerk that he would like to travel to the Treasurer’s Office that day and pay his school tax. Schulz asked the clerk if she would let Schulz know the total amount due, including penalties and interest, through December 8, 1997. Within 4 or 5 seconds, and without asking which parcels were involved, the clerk was able to call up on her computer screen the record of "unpaid 1997-1998 school taxes" and, specifically, the amount of unpaid school taxes (by parcel) owed by Schulz. The clerk was able to do this merely by entering Schulz’s name into the computer.

The clerk then told Schulz that he would be unable to pay his 1997 school taxes because the Washington County Board of Supervisors had passed a Resolution directing the County Treasurer to accept payment of any late school taxes until December 1, 1997, and that after that date the taxes would be re-levied on the following year’s Town and County tax bills which would be sent out by the Towns on or about January 1, 1998.

Schulz asked the clerk what additional penalty and/or interest would be imposed if he had to wait until January to pay his school tax. The clerk answered, "The unpaid 1997-1998 school tax will be increased by 7%."

On or about December 11, 1997, Schulz went to the office of the Washington County Treasurer to pay the school tax then due -- his 1997-1998 school tax (with penalty). He told the clerk that greeted him that he wanted to pay his school tax. The clerk asked Schulz his name. She entered the name into a nearby computer. Within a few seconds she told Schulz that he was late on payment of the school tax on more than one parcel, that Schulz would not be able to pay the tax that day, that the school tax was going to be re-levied on the following year’s Town and County tax bill at approximately 110% of the amount of the original tax, i.e., the tax that was due to be paid on or before September 30, 1997.

On December 15, 1997, after calculating the amount of school tax due, with penalty and interest included, Schulz returned to the office of the County Treasurer with a check made out to the Treasurer in the amount of $3,509.24 and demanded that he be allowed to discharge his school tax "debt". The clerk refused to let Schulz discharge the "debt". The clerk then gave Schulz a copy of the Resolution passed by the County Board of Supervisors directing the Treasurer not to accept late school tax payments after December 1, 1997.

On December 31, 1997, Schulz received his Town and County tax bills for the 1998 calendar/fiscal year which begins on January 1, 1998, and runs through December 31, 1998. Schulz’s unpaid 1997-1998 school taxes were included, bringing the total due to $7,264.55. The school tax was now up to 110.2% of the school tax that was due on or before September 30, 1997 -- a 10.2% penalty for being three months late.

On or about January 6, 1998, Schulz telephoned Virginia Parrott, the Town of Fort Ann tax collector. Schulz told Ms. Parrott that he didn’t have enough money to pay the School tax and the Town tax ($7,264.55). Schulz asked Ms. Parrott if he could go over to the Town Hall that day, pay only the School tax and pay the Town tax in February or March. Ms. Parrott said "no". She said she was required by law to collect "all or nothing." When asked, she said she could not cite the law which prevented her from allowing Schulz to pay only the school tax at that time and to pay the Town tax at a later date.

If, by April 1, 1998, Schulz failed to pay to the Town of Fort Ann tax collector the sum of the relevied 1997-1998 School tax and the 1998 Town and County tax, the matter would be turned over to the County tax collector, who immediately would add a 5% penalty and 1% interest to the amount due. The County would allow Schulz to pay the tax due at any time thereafter. However, the interest tax would continue at the rate of 1% per month, raising the original school tax from $3,407.04 to $4,224.73 if not paid by August 1998, an increase of $817.69, or 24%.

On January 20, 1998, Schulz took the county and the town tax collectors to court.

* Click here * to see a copy of papers filed in U.S. District Court.