St. Lawrence treasurer vows to avoid tax surprises

CANTON — St. Lawrence County's treasurer pledges to do more in the future to help municipalities avoid the tax problems entangling the city of Ogdensburg and the town of Fowler.

The city did not remit a portion of the taxes it collected for the county in 2008 until December and still owes about $2.1 million. County legislators weren't told until last week.

The county does not have access to the city's tax collection system. The city has its own tax collection and enforcement process, collecting taxes on behalf of the county and remitting the money collected throughout the year. The city is responsible for paying county and school taxes on property it controls, and paying the city school district to compensate for delinquent taxes.

Treasurer Robert O. McNeil said he would like to have at least the city's year-end numbers on the county tax collection database. He has urged the city to follow the three tax remittance deadlines in its charter, May 25, Aug. 25 and Dec. 1. Mr. McNeil, who said he didn't know until November that the city had not paid, said from now on he will check the payment status on those dates.

He asked that the Legislature allow the county and city to close their 2008 books and reconcile their accounts before taking further action. Mr. McNeil said he expects the city to pay what it owes by May 1.

"Anybody can have a cash flow problem, but what bothers me the most is that we didn't know it," Legislator Donald A. Peck, R-Gouverneur, said at Monday's Legislature meeting. "I'm concerned that we didn't miss collecting $4 million throughout the year."

Legislators Sallie A. Brothers, D-Norfolk, and Thomas A. Nichols, R-Oswegatchie, echoed that sentiment. Mr. Nichols accused Mr. McNeil of forging behind-the-scenes deals with the city.

"I resent the fact that you, Mr. Nichols, are suggesting that I'm making deals," Mr. McNeil said.

Legislator Peter FitzRandolph, D-Canton, said Mr. Nichols's accusation was not a good start to 2009 after several lawmakers, including Mr. Nichols, urged their colleagues to put differences aside for the good of the county.

Mr. McNeil said his office also will be more vigilant in reminding towns about upcoming chargebacks when major taxpayers who win assessment challenges get tax refunds. He said his office will keep a "tickler" file to notify towns of large chargebacks before they are billed.

Fowler town officials said they assumed the county would spread over several years a $226,406 chargeback from a tax refund to Gouverneur Talc. The county and town settled the talc mine's property assessment challenge in 2007, and the county refunded the mine for town taxes overpaid as a result of its previous assessment. The town owed the county its share of the refund.

The county, without being asked to do otherwise, added to this year's tax bills the entire amount it paid the mine on the town's behalf. In past instances, towns have asked the county to spread out such charges over several years. That did not happen in Fowler's case.

That resulted in a tax levy increase of 33 percent, rather than the 3.5 percent levy increase town officials approved.

"We pass a budget with a tax rate associated with it. After the town board passed its budget, it changed. To me, it would be kind of shocking if a higher authority decided to change our budget," said Legislator Frederick S. Morrill, D-DeKalb Junction.

Fowler Supervisor William H. Lutz said it's too late to borrow money to make up for the extra burden.