NEW: Providence May Move 1st Quarter Tax Deadline Up to July
Wednesday, May 23, 2012
In an effort to avoid running out of cash, the city of Providence may move its first quarter tax deadline up from August to July, GoLocalProv has learned.
“The rational is that city has and will continue to have a serious cash flow problem that will continue into the next fiscal year,” Igliozzi wrote.
In January, internal auditor Matthew Clarkin and city treasurer James Lombardi informed members of the Council that the city could run out of cash by June.
But since that time, Providence has taken several measures to close its budget gap, including reaching agreements for payments in lieu of taxes with Johnson & Wales, Brown University and Lifespan. The city also plans to freeze cost-of-living-adjustments (COLAs) for retirees.
Councilman Sam Zurier has already taken steps to inform his constituents of the possible changes to the tax deadline.
“If we receive sufficiently clear information from the General Assembly, this year’s schedule will permit the City to send out tax bills in July rather than August, which will assist greatly in managing short-term cash flow,” Zurier wrote in a letter dated May 14. “I encourage you to begin planning today for the possibility of paying the first quarter of taxes a month earlier than usual, so you will be ready if the City Council meets its schedule. I regret having to ask this of you, but the alternative for the City would be to obtain short-term financing which would result in higher taxes due to interest and transaction costs.”
Last year, the city moved its first tax deadline up from September to August.
Dan McGowan can be reached at email@example.com.