Volz bill to protect taxpayers from foreclosure one step closer to becoming law
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Volz bill to protect taxpayers from foreclosure one step closer to becoming law
'Now is the right time to enact this small but meaningful protection against foreclosure for property tax payers who are honestly trying to catch up and keep their homes,' says state Rep. Mike Volz
Legislation that would protect taxpayers from foreclosure moved one step closer to becoming a reality last week.
House Bill 1410, which was recently approved by the House Finance Committee, would reduce the penalty and interest for late property tax payments from about 23 percent to 12 percent.
Rep. Mike Volz, R-Spokane and prime sponsor of the measure, says it's time for counties to stop balancing their budgets on the backs of distressed homeowners.
“Homeowners who are late paying their property taxes but trying to catch up are usually in a state of distress or conflict,” said Volz who has sponsored similar legislation in the past. “Late property taxes are just one of the many things they're dealing with. We see divorce, death, illness, mental health issues, and job losses. When you add in these high, usurious interest rates it's just another unnecessary financial burden to folks who are already struggling. There needs to be consequences for late payments, but not so much that it drives homeowners into foreclosure, which is what we often see now.”
Volz, who also serves as the Chief Deputy Treasure for Spokane County, said that opposition to the bill comes from county officials who plan their annual budgets to include forecasted but unpredictable penalties and interest. Working in the Treasurer's office, Volz knows this practice is bad budget planning, particularly when usurious rates charged are near or exceed those of credit cards.
“Frankly I'm tired of county budgets being balanced on the backs of homeowners who are in distress,” said Volz. “When you have counties actually planning for a certain number of people in their jurisdictions to pay an outrageous 23 percent penalties and interest – that's not right. It's poor budgeting procedure and I have a problem with that.
“COVID has caused more financial hardships for more people,” continued Volz. “Now is the right time to enact this small but meaningful protection against foreclosure for property tax payers who are honestly trying to catch up and keep their homes.”
Volz said his legislation would protect some of the most vulnerable residents in the state from losing their homes and thus needing more services from state and local governments.
“We spend an awful lot of state and local government taxpayer dollars on the homeless,” said Volz. “We should do what we can to prevent people from becoming homeless in the first place. This change to our state's penalties and interest for late property taxes from 23 percent to 12 percent will absolutely keep some in this state from becoming homeless.”
Volz's bill has bipartisan support, passing the committee 16-1. It is now eligible to be debated and voted on by the entire House of Representatives if the Speaker of the House allow it.
The 105-day remote 2021 legislative session is scheduled to end April 25.
