As previously shared, our tax payment processor, Webster Bank, is conducting an audit of all Wilton transactions. They are discovering checks received on a timely basis, but not processed by them. Webster Banks expects the audit of their daily activity to continue through the end of the week.
The Tax Department received an initial packet with documentation for 40 unprocessed checks. These checks and subsequent checks received are or will be processed as follows:
- The department will look up the account to determine whether the balance is still outstanding or if a replacement check has been received and posted.
- If the balance is still outstanding, the check will be processed and posted with the original timely bank receipt or postmark date.
- If the balance has been paid, the check will not be processed for deposit, but the payment record will reflect the timely receipt or postmark date.
- The associated taxpayer, mortgage company, attorney or other third party will be contacted by the department to begin the process of refunding or issuing a tax credit for any overpayment of taxes, paid interest or fees and/or any related stop payment fees.
- CT statues require the department follow a specific process for refunds, including the completion of paperwork by the associated taxpayer and or mortgage company, attorney or other third party. We are streamlining the process to the extent possible.
We will not have complete documentation from Webster Bank for every timely unrecorded check until early October.
Some of you have expressed concern about an additional 1.5% interest charge as of October 1, 2021. Please know that if you choose to make a replacement payment by September 30th and issue a stop payment on the original check, the related stop payment fee will be reimbursed by the Town of Wilton should your original timely check be found by Webster Bank. Also please know when providng a replacement check, until your original timely check is found and interest is waived, by statute the tax deparment must consider your taxes deliquent and first apply any replacement check against the outstanding interest and fees. Legally, we can't do otherwise if and until the timely check has been found. As such, the entire amount must be paid to bring the balance to zero. Please note that the 1.5% interest is only charged on the outstanding balance for the property taxes. Interest is not compounded.
Thank you for your continued patience.
Lynne A Vanderslice