Property tax season has arrived, and government agencies will be collecting the first installment from property owners. Calculated by the county assessor each year, most counties split the annual cost into two installments over the 12-month period, usually with a larger initial installment.
So how do you plan to collect and reconcile the revenue for your agency? The collection process presents a unique opportunity for you to implement a modern approach to payment collection that will help both property owners and your government agency. Implementing efficient technology to provide highly secure, flexible payment methods makes collecting property tax easier and speeds up revenue realization. So, where do you begin? Let’s explore.
Offer Flexible Payment Methods to Make Property Tax Collection Easier
Pursue Fully-Integrated Tech and Processes to Maximize Convenience and Efficiencies
Many municipalities rely on third-party services to help process payments. Getting the right external support when resources are scarce is a smart decision and can be valuable. But who you choose to partner with and how is a crucial consideration. Relying on external services that do not offer fully integrated processes and tech delays payments from posting to accounts, delays transaction adjustments, and delays realizing revenue.
Bring payment processing and revenue collection in house with the right partner. Select a vendor with the capability to fully integrate the new tech to internal source systems and that can brand the tech to remind all of your customers that they are doing business directly with you. The fully integrated approach allows for immediate posting to accounts, and faster reconciliation and revenue realization. These efficiencies help everyone manage their needs with more ease and everyone will be happier with the overall experience.
Offer More than One Way to Pay Property Tax Bills
Some municipalities accept payments by debit or credit card, while others don’t. For those that don’t accept card payments, property owners are forced to pay their bills by check at a payment center or by e-Check on the county website, where payments are taken directly from a customer’s bank account.
Instead, governments should offer homeowners the option to pay by a variety of methods. E-check payments and card payments, specifically, spare customers the burden of handling a physical check, offering a more secure way to pay, and reducing the risk of delinquent payments and penalties.
Eliminate Fees on Payments Whenever Possible
Many municipalities are better supporting their lower income customers by removing unnecessary hurdles to access essential services. One of the most effective measures has been the removal or reduction of fees, particularly on cash, card, and ACH transactions.
Do what you can to reduce or eliminate fees for every customer, but especially those most affected. Underbanked and unbanked communities are most vulnerable, and any reduction or elimination of fees removes an unnecessary burden on these households.
Simplify Applications for Deferrals, Discounts, and Exemptions Expedites
Everyone appreciates a discount on a bill, especially those as large as property tax. Common reductions in property tax come from a variety of exemptions, including homeowner’s exemptions, Veteran’s exemptions, exemptions for people with disabilities, and senior citizen exemptions. But many municipalities still require that the applications be mailed in or dropped off in person, making the process even more arduous for property owners.
To solve this, streamline the application process to save everyone time. Implement automated processes and versatile channels to verify eligibility and facilitate easing document filing for customers with automated processes via online and in-person channels, making it easier to attach them to a customer’s account.
Provide Your Customers the Opportunity to Enroll in a Payment Plan or Installment Agreement
Any way to reduce the tax burden on customers can make a world of difference. And it won’t shortchange you, either.
Provide an easy way to sign up for a plan that calculates and breaks the property tax bill down into more manageable installments. This has been shown to reduce delinquent payments and still deliver steady revenue collection for you, supporting any of your initiatives to maintain or expand on existing services.
Implement Centralized Payment Channels That Allow Customers to Pay for More than Property Tax Bills
One-stop shop has a great ring to it–and the benefits it provides to everyone are even better. Enabling property owners to tackle multiple department bills in a single visit to one website or in-person location will pay massive dividends for everyone.
To achieve this, introduce tech that can support more than one bill type. Customers can then pay for a permit to use facilities at one of the county preserves or parks while also paying for a parking citation in the same visit.
Leverage Centralized Reconciliation to Speed Up Actualizing Revenue
A single tool that can perform research, reporting, and reconciliation tasks with secure, centralized access to all transaction data is invaluable. Reconciliation processes that require taking data from different sources only to enter it somewhere else to complete processes like voiding transactions and issuing refunds are inefficient and cause painful delays to customers that rely on vital funds. This also delays revenue collection for governments like yours that serve people with essential services.
To deliver better service to your customers and realize revenue more quickly, procure a centralized reconciliation tool that has immediate access to transaction data after a transaction to address any discrepancies quickly. You can collect and actualize revenue more quickly to fund important services. If this tool can also produce reports, month and year end close-out can be simplified and expedited, also.
Simpler Property Tax Payments Pay Off for Property Owners and Governments Alike
Governments like yours are in the business of serving people. You rely on consistent revenue to maintain and improve upon a wide range of public services. As a major source of consistent, annual revenue, property tax plays an important part in your budget. That underscores the importance of making and collecting property tax payments as convenient and streamlined as possible.