Shocking Experience with Ithaca’s Tax Collectors: A Warning for Property Owners

The City of Ithaca’s tax collection practices have come under scrutiny after a shocking experience was shared by a local property owner. In a recent incident, a property owner who had paid off their mortgage on a rental property in Fall Creek in January 2022 found themselves in a dire situation due to a missed tax payment.

The property owner, who had been paying their taxes through escrow, was responsible for the payments after the mortgage was paid off. However, due to an oversight, they missed the second installment of their taxes for 2022. Despite the City of Ithaca’s policy of sending out reminder notices for missed payments, the property owner did not receive any notification about the missed payment.

It wasn’t until 20 months later, in February 2024, that the property owner received a letter from the chamberlain’s office informing them of the missed payment, along with over $1000 in fees and interest, and the threat of foreclosure on their property. Shockingly, the property owner was unaware of the missed payment and the accumulating fees until receiving this letter.

Upon further investigation, it was revealed that the chamberlain’s office had chosen to conceal the missed payment and fees from the property owner, only notifying them once the property was in foreclosure. This unethical practice of withholding information and extorting money from property owners has raised serious concerns about the city’s tax collection policies.

If not for the property owner’s timely discovery of the situation, their property could have been sold off due to a relatively small missed tax payment, resulting in the loss of years of hard-earned equity. This incident highlights the need for transparency and fairness in tax collection practices and calls for a change in the city’s policy to prevent similar situations from occurring in the future.