City issues 17 businesses small claims court notices for unpaid personal property taxes
Nearly 120 businesses in Mount Pleasant failed to pay their personal property taxes on time, according to Mount Pleasant Finance Director Mary Ann Kornexl.
Of those 120 businesses, 17 of them failed to pay and received small claims court notices from the city within the last week. Delinquent tax amounts range from $42 to $2,800 according to city records.
The top three highest amounts are owed by Great Lakes Medical, Maui Tan and Tim Horton's — each owing amounts of thousands of dollars.
Personal property tax is defined as taxes on equipment and personal property inside a businesses building, and not the building itself, Kornexl said. This includes everything from bar stools, ovens, hoods and other furnishings.
These furnishings and personal property can be used to pay back the city if the treasurers office has placed a tax lien on personal property. Kornexl said a lien is the final effort used by the city when seeking remedies to delinquent personal property taxes.
Typically, a business will receive multiple notices of unpaid taxes from Kornexl before they are taken to court. Communicating with the city in the early stages of delinquency can help these businesses get on a payment plan. Kornexl said businesses that work with the city have an easier time paying up.
If a business is taken to court and issued a judgement, they have 21 days to that amount. After that date, they city can begin to garnish money in a business' bank account and sell its off its assets to make up the difference.
Excluded from the list was Happy's Pizza, which went out of business in February CHECK. The local franchise owes the city a total of $9,792.93 total personal property taxes — $4,928.69 of which are unpaid city taxes. The other $4,864.24 is a jeopardy assessment. This amount is added on if the city believes the taxpayer has disappeared or is concealing assets.
Happy's was out of business when the lien was placed on the franchise, Kornexl said, which necessitated the jeopardy assessment. Some of the personal property in the building was removed before the city posted the lien. City officials are in the process of investigating where that property went.
The property the city was able to seize will be auctioned off to make up the unpaid amount.
Happy's local troubles are unique, Kornexl said, as most businesses rarely face liens.
In 2014, the personal property tax was abolished, and anyone filing for less than $80,000 in value qualified could qualify for an exemption. Some businesses were still confused about the change, which Kornexl surmises lead to so many businesses not paying the full amount.
"If they didn't file for the exemption beforehand, there is no remedy to give them other than the initial exemption," she said. "My guess is that of the 17, only two or three will actually go to court. The notice to appear in court usually perks up their ears."
