Quote:
Originally Posted by Flylady
If the town was collecting taxes on Longview for a much higher assessed value, then the lower taxes to be collected could result in having a higher spending budget than the revenue received. A.K.A. a budget deficit. Ultimately doesn't this then lead to more overall increases in the mil rate for everyone?
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Assessments are made on April 1. Although a sale might affect the assessment, it doesn't take effect until the following April 1. Towns (& state/county) cannot deficit spend. That's just for the Feds. If the BOS sees a deficit coming, they have to stop spending. If they don't see it coming, they'll know when the Town Treasurer tells them the check book is empty. Some towns cut it close in December and have no money until the March Town meeting. They can carry themselves over with TAN's, Tax Anticipation Notes. Pretty rare since taxes are collected in December.