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Butkovitz: City must do more on tax collections

City Controller Alan Butkovitz said today that the city needs to do more to crack down on delinquent real-estate taxpayers.

"Taxpayers don't take seriously the fact that the city's got any teeth in enforcing collections, so everybody games the system," said Butkovitz, who today released a report that says the city and school district missed out on $120 million in taxes fiscal years 2011 and 2012.

One problem, he said, is that the city waits too long before notifying people that they are behind on their bills.

"I would start dunning people immediately when they become delinquent," Butkovitz said. "My experience is that when I don't get a bill, I don't pay the bill. And I think that's true for most Philadelphians."

Butkovitz also suggested selling the city's property liens to a third party, reporting deadbeats to credit bureaus and revamping the Sheriff Sales process.

Mayor Nutter earlier this year created a new chief collections officer position and has promised to increase collection efforts this fiscal year, especially for schools.

Nutter spokesman Mark McDonald said today that while he hasn't been able to read the report yet (Butkovitz did not give it to the administration for review before publication), tax collections are a top priority for the mayor.

"We increased tax collection across the board," McDonald said. "Tax collection is one of our central concerns, and I think we've made substantial progress in that area. There's much more to be done."

The issue has been in the spotlight this year for several reasons, inclyding Nutter's overhaul of the property assessment system and a PlanPhilly/Inquirer investigation that detailed the effects of high delinquency rates.