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Firm hired to collect delinquent city taxes
Saturday, February 27, 2010

If you've shirked your city of Pittsburgh property taxes, watch your mail.

Starting in the next few days, the city's new collector of old taxes will be sending out nearly 15,000 notices, some of which will eventually lead to sheriff's sales.

The city's goal is to boost collections of tax debts that can linger for 20 years, get delinquent property owners on payment plans, bring in money for the city, the schools and Allegheny County -- and thus reduce the burden on those who pay.

The city can use the money, said Controller Michael Lamb, who pushed the city to hire McMurray-based Jordan Tax Service, which the county has used as its collection agent for years.

Jordan now has the job of collecting nearly $100 million in delinquent city, school and county taxes, but the mailings going out in March aim to bring in around half that much. If everybody who got a notice paid in full, the city would get nearly $19 million, the school district more than $22 million, the county around $11 million, and Jordan around $5 million through its 10 percent add-on fee.

Not everyone, though, will send a check for the balance due. Those who can't may be put on payment plans that can run as low as $50 a month for low-income residents. Existing city payment plans will be unchanged, except that the bill will come from Jordan.

Ninety days after a letter goes out, Jordan and its attorneys, Goehring, Rutter & Boehm, can start the sheriff's sale process, though it's doubtful they will move that quickly. Michael McCabe, a shareholder at the firm, said they're "not going to be quick to file any lawsuits," though he urged recipients of letters to call Jordan quickly before interest and fees build up.

Jordan's phone number is 412-345-7960, and it takes checks by mail, credit card payments by phone or Web at www.jordantax.com, or in person at an office on the second floor of the county courthouse.

"With the collection agency, they have more resources to follow up on payment plans, make phone calls, mail out collection letters," explained city Treasurer Margaret Lanier.

Rich Lord: rlord@post-gazette.com or 412-263-1542.
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First published on February 27, 2010 at 12:59 am