Milwaukee County Board unanimously approves allowing delayed payment of property tax installments

Milwaukee County property owners who pay their property taxes in installments will get a temporary reprieve under a measure the County Board unanimously approved Thursday. 

The measure allows the county's municipalities to waive interest and penalties on property tax installments unpaid after March 31 as long as the payments are made by Oct. 1. Under state law, if the measure wins approval at the county level, municipalities must then pass their own, similar legislation permitting the deferments.

The waiver wouldn't apply retroactively to missed or late payments for property tax installments due before April 1, according to guidance from the Wisconsin Counties Association. 

The board rejected a more restrictive version that would have required property owners to attest that they used at least 25% of the property as their primary residence and/or owner-occupied business during the coronavirus pandemic. 

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County Comptroller Scott Manske estimated the cost to the county would be about $50,000 — about $25,000 for administrative costs related to processing more delinquent taxes and $25,000 in interest the county would have received on tax payments it would have taken in before distributing the principal to municipalities.

Glendale Mayor Bryan Kennedy said about 10% of his city's property taxpayers pay on the installment plan, and he thought there are likely people across the county for whom this will make a difference. 

"Obviously, the collapse of the economy after COVID-19 hit in mid-March meant making that third (installment) payment for many property owners was going to be difficult," said Kennedy, who chairs the Intergovernmental Cooperation Council that includes leaders from each of the county's 19 municipalities.

The last of three installments in Glendale is due May 31, and the city's Common Council is scheduled to meet at 8 a.m. Friday to take up a local measure allowing the deferments.

Kennedy said he hopes County Executive David Crowley signs the legislation quickly. 

"We hope it’s walked from one floor to another in the courthouse today or tomorrow so it’s signed," he said.

Crowley is expected to sign the legislation as soon as he receives it.

In a letter to the County Board dated Thursday, six members of the Milwaukee Common Council also urged passage of the less restrictive measure. 

They noted that at the end of the April tax collection period, 2,895 city property tax accounts — owner-occupied residences, rental properties where tenants couldn't afford to pay the rent to landlords, and business owners forced to close in the pandemic — were delinquent for failure to pay the installment that was due. 

"Allowing the City of Milwaukee to implement a temporary general moratorium regarding the collection of interest and penalties on delinquent property tax installments through September of 2020 offers some relief where many are facing a financial crisis akin to the Great Depression that is not of their own making," the letter signed by Common Council President Cavalier Johnson and Alds. Robert Bauman, Milele Coggs, Nikiya Dodd, Nik Kovac and JoCasta Zamarripa states.

Contact Alison Dirr at 414-224-2383 or adirr@jrn.com. Follow her on Twitter @AlisonDirr.