Philadelphia, February 4, 2013 – Mayor Michael A. Nutter was joined by City officials to announce the Department of Revenue’s new Delinquent Tax Collection Strategy, an aggressive, multifaceted strategy using new technology, analytical capability and strategic staffing to substantially increase delinquent collections.
“Our Administration is committed to collecting every tax dollar owed to the City to pay for vital City services for the highest quality of life for our citizens and for the education of thousands of students in the School District of Philadelphia,” said Mayor Nutter. “Our new Delinquent Tax Collection strategy will implement best practices in delinquent tax collections for the benefit of every Philadelphian.”
The new Delinquent Tax Collection Strategy will:
- Employ advanced technology and data analysis;
- Increase education and outreach efforts;
- Leverage private collection agencies, including earlier collection activities;
- Build more efficient partnerships with sister agencies; and
- Target areas to increase capacity and effectiveness.
Revenue Commissioner Keith J. Richardson added, “We need new technology and approaches to delinquent tax collections in order to level the playing field and give us the necessary enforcement tools to retrieve the revenue that is owed to the City and the School District. I am looking forward to continued growth in our overall collections.”
The new strategy will cost $40 million over the next Five Year Plan, including $25 million in capital funds and $15 million in operating funds. Based on results in other jurisdictions, the new strategies could generate a gross of $300 million, or a net of $260 million, in collections through FY18.