Town to Give Residents Interest Break on Back Taxes

Beginning Jan. 1, Dedham residents can pay back real estate taxes from fiscal year 2010 and before without an interest charge under a tax amnesty program that will run until Feb. 28.

Dedham is owed $3.5 million from residents, according to William Ralph, assistant director of finance.

"I'm sure we won't get all of it back, and we don't have a target because of the economic climate," Ralph said in an interview.

The interest rate on tax bills is 14 percent, Ralph said. People should look into taking out a bank loan or dipping into savings in order to pay off their debt without that 14 percent added in, he said.

"We try to work with people the best we can," he said.

The program is apart of a state-wide effort to fill town coffers with money owed to them. A state statute allows towns to drop the interest, but only for a limited time.

Dedham residents must pay back taxes between Jan. 1 and Feb. 28. The bill must be received by the town's tax collector by Feb. 28 in order to qualify for the tax amnesty program.

Ralph emphasized that bills postmarked Feb. 28 will not be accepted if received on or after March 1.

When the town ran the same program in 2004, they collected $600,000, Ralph said.

"In tough times, if we can give people a break, and do it legally, that's why we adopted it," he said.