EXPERT SPEAKS VOLUMES ON THE COLLECTION OF DELINQUENT USER FEES AND TAXES

Pens were poised when Michelle Portnoff took the floor at the GFOA Conference on Monday. Ms. Portnoff spoke to PA municipal employees from across the state on the topic of fair and effective methods of collecting delinquent municipal fees and taxes.

Michelle Portnoff, President of Portnoff Law Associates, was a guest speaker at the annual GFOA Conference on Monday, April 28th. At the invitation of James L. Cavenaugh of The PA Bureau of Correctional Industries, Ms. Portnoff took the floor on the topic of fair and effective collection methods for delinquent user fees and taxes, a task in which her firm has been successful for the past fifteen years. Today, she has over forty-five municipal and school district clients in the Commonwealth of Pennsylvania, some of whom were among the attendees on Monday.

   The audience was all ears when Ms. Portnoff offered advice on amending collection methods and improving collection rates. Several attendees expressed frustration at the low collection rates and the resulting fee increases year after year in their municipalities. Portnoff Law Associates, with operations in Wynnewood, PA, is the first firm in Pennsylvania to come up with a fair and simple process that dramatically improves collection rates. Pens were poised as Portnoff emphasized what she has found to be the three key points collection efforts for any municipality: The need for a practical ordinance that outlines collection methods, the need for organized and accurate data, and the need for uniform procedures and policies for the collection of delinquent fees.

   According to Ms. Portnoff, there are two ways to collect a delinquency. Some municipalities collect according to a threshold amount, and others collect on a calender basis. Portnoff advised,I strongly recommend collecting on a calender basis. This way, user fees become a priority claim against the property." In municipalities in which collections are done on a threshold basis, for example $500, property owners figure out the system and continually maintain just under $500 in delinquency to avoid penalization, at the expense of the municipality and upstanding residents.

   The goal of the tax collection effort should be fair treatment that results in the voluntary payment of taxes," Portnoff said. The Portnoff collection method targets all delinquent property owners, giving them thirty days to pay in full without legal fees. The system allows for hardship accommodations and payment plans for those residents who are truly unable to pay. Moreover, the system prevents landlords and commercial property owners from continually beating the system."
   Hands flew up and questions were plentiful at the end of the session, with audience members eager to learn more from the experiences and expertise of Ms. Portnoff.

   Michelle Portnoff is currently scheduled to speak on May 6, 2003 at the PASBO Convention in Hershey, Pennsylvania on the same topic.