Hey, there! Log in / Register

Boston suspends property-tax collection until June

COVID-19 Media Availability 3-30-20

Mayor Walsh announced today that the city has suspended collection of property taxes through June to try to help homeowners through the current Covid-19 crisis.

Walsh added that the city will be distributing 1,000 rental vouchers to families of BPS students who are either already homeless or who are at risk of being displaced from their homes over the next year - half to homeless families and the other half to families at risk of losing a place to live.

With the vouchers, families will be able to seek apartments knowing they will not have to pay more than 30% of their income in rent - the Boston Housing Authority will use federal funds to make up the difference.

Neighborhoods: 
Topics: 
Free tagging: 

Ad:

Do you like how UHub is doing? Consider a contribution. Thanks!

Comments

If I am not mistaken. Everyone who's stating they are suspending payments that doesn't necessarily mean you won't have to pay for the months that they're suspending I think it means you will eventually have to pay it later just not right now.

If I'm not mistaken the word suspend in this terminology and contexts, only means to put off until later. So I certainly recommend everybody to check the word suspension when people are saying stopping billing.

Don't Get It Fucked Up

up
Voting closed 5

"Until June" and "through June" mean two different things to me (neither is totally precise, but the first could mean until June 1, while the second I would say means until the end of June).

up
Voting closed 6

He didn't specify a date.

up
Voting closed 4

Seems like a good idea.

But .. how much money does the city have in the bank, just in case one was wondering.

up
Voting closed 5

Sorry..

up
Voting closed 5

Typically about 3 months of cash needs on an operating basis plus all kinds of little coffee cans they stick in the proverbial freezer for a rainy day. Floating 30-45 days is pretty doable

Looking at the balance sheet from June 30, 2019 (end of fiscal year), they had about $1.5 billion in cash and liquid investments and receivables toward a $3.5 billion budget, or about 5 months float. So no problem letting this slide for a month or two.

up
Voting closed 9

How does this even work? My property taxes are included in my mortgage payment.

up
Voting closed 11

Your bank collects those payments in an escrow account and pays the city when the city sends them a bill.

up
Voting closed 4

Explain the situation to your mortgage company and they might be willing to stop taking out your taxes, but honestly I doubt it. (Since they typically take out a little every month, they have already taken some of the money you'll owe in taxes, so it starts to get complicated.)

up
Voting closed 7

I think postponing collection may be a better title. Suspension implies they arent collecting it...I think its all still due..they are just delaying its collection..bot sure how much it will help if people arent getting paid. Or maybe Im wrong and they are suspending it?

up
Voting closed 6

It should be pointed out that _most_ of us have mortgages and the "impound" account collect this every month. The mortgage company already paid the property tax. This is no such relief, and they know it as most tax bills have already been paid.

up
Voting closed 11

Over 60% of Boston rents, so no, most of us are not lucky enough to have to worry about a mortgage. Instead we have to worry about our landlord's mortgage, and whether or not any break there will actually trickle down to us peons.

up
Voting closed 11

It's good to do, but will not affect that many people.

By the time June 1 rolls around, people should have their federal checks, and some may be back at work.

up
Voting closed 8

Real Estate taxes are due tomorrow so 99% of folks have already sent them in. Hey, let's wait until the day before the taxes are due to tell folks they don't have to pay them on time. What a joke.

1st quarter taxes are due by July 1st so maybe on June 30th the city will tell you not to worry about it.

up
Voting closed 8

Except that 4th quarter taxes are due may 1 and first quarter are due august 1, but don’t let facts get in your way

up
Voting closed 7

I'm not sure what city you're thinking of. Boston property tax payments are due 8/1, 11/1, 2/1, and 5/1.

up
Voting closed 11

The bills come out tomorrow.

They are due to be paid by May 1.

Those are the bills Walsh is suspending until some time in June.

up
Voting closed 11

My question is if they are holding off on collections, are they planning on charging 18% (or whatever they charge) on deferred tax payments?

up
Voting closed 6

Dumb question,

What does this mean for 90% of home owners who escrow their taxes?

I read this as "nothing" because the bank keeps expecting escrow deposits, they money is going to be due by the end of the year right?

I am not criticizing, I know this is one of the lever's he can pull, just currious

up
Voting closed 8

I'm wondering if it's intended to work in parallel with banks letting people miss mortgage payments. If your taxes are baked into your payments as most are, you couldn't skip a mortgage payment if you still had to pay taxes and didn't have enough in your escrow account. That being said this sounds like a very complex orchestration between you the bank and the city that feels like it's just kicking the can down the road.

up
Voting closed 2

Why are people escrowing all these taxes?

We've refinanced multiple times over the years and always say we'll pay our own taxes. I think some banks require it if you have under 20% equity, but other than that just seems a way for the bank to get float on your money.

Why is everyone doing this? (Granted, in the era of no interest at banks it may be slightly more convenient).

up
Voting closed 6

Why are you letting banks escrow your tax and insurance payments? They always want to “hold” way more than is needed. Tell them you’re grown up enough to pay your own bills.

up
Voting closed 1

This is what the city councilors should have been talking about last week, when they were debating the resolution calling for a suspension of rent (and maybe mortgage) payments. Those things are not in their control; property taxes are.

We do have leadership in the council, but it's the wrong type of leadership: the type exhibited by 45 when he talks about opening the economy by Easter (out of his control) rather than cleaning up his own shop and preparing for an emergency.

up
Voting closed 7

Will they lower our monthly escrow payments for our mortgages to take into account the delay in paying property tax? Otherwise, they just have use of our money for longer.

up
Voting closed 8

Oh, you know, except about two thirds of households.

How about a clause that says that any landlord who takes advantage of this has to temporarily reduce their tenants' rent by some commensurate amount (30%? 50%?) during the same time?

up
Voting closed 13

That would only make sense if the landlord increased the rent a month or two later because the way things are now set up, they have to pay the original taxes then, plus the regular tax bill a month later.

up
Voting closed 8

Are not 30% or 50% of the landlord's cost, especially not for "mom-and-pop" (small) landlords. If taxes were actually such a large part of the cost, then the city should have reduced taxes a long time ago to make rent much more affordable.

Other things that cost small landlords dearly: water, snow removal, landscaping, emergency repairs/maintenance, and most of all, the mortgage (or depreciation/wear and tear if they own).

up
Voting closed 4

Thanks, Ari, we're all set on this one. Recommendation: focus on where you live instead, lol.

up
Voting closed 5