BEVERLY — City councilors say it's one of the most common complaints from residents: With all of the budget problems facing the city, why doesn't it go after the $3 million in back taxes that it's owed?
Three million dollars is a lot of money, but an outside auditor told councilors this week that the city is doing a "decent job" of collecting back taxes.
James Powers of the accounting firm Powers & Sullivan said the city is owed $2.26 million in unpaid real estate taxes and about $700,000 in automobile excise taxes, for a total of about $3 million.
Powers said that amount is not unusual for a city of Beverly's size. He said it takes time and money, including the cost of hiring lawyers, to track down tax scofflaws.
"Nobody ever collects 100 percent," he said.
John Dunn, the city's finance director, said that the city collects 16 percent interest when overdue tax bills are paid.
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