REAL ESTATE DISCOUNT (RED)
This program provides the citizens of Summit County with a method of budgeting their semi-annual tax payments. Further, taxpayers are able to share in the interest revenues generated from those early payments in the form of a discount credit, which reduces their semi-annual tax bill. This is an opportunity to participate in government and directly benefit from that participation.
All property owners qualify. The property does not have to be owner occupied, but legal owner or authorized agent must sign an agreement for each parcel enrolled prior to making the prepayments. Real estate taxes must be current (no delinquencies or unpaid taxes) to participate in the program.
There are two enrollment cycles, August 1 through December 31 for the first half tax collection and February 1 through June 30 for the second half tax collection.
Payments are determined by dividing the current half taxes by 6. The taxpayer will receive 5 of the 6 coupons immediately after receipt of the signed agreement. The taxpayer may choose to pay each coupon monthly, pay the total of all 5 coupons at one time or stagger the payments over the collection cycle. Payments to the discount program can never exceed the total of all 5 coupons.
The 6th coupon is a "balance due bill", which will indicate current taxes, show prepayments and the discount credit earned. The coupon must be paid by the date indicated to avoid any statutory penalties.
The calculation of the discount credit is based on the average portfolio yield earned by the county for that investment cycle, the amount of payments received and the length of time the payments are invested. Taxpayers can earn a maximum of 5 months interest per tax collection. (February through June and August through December). Simple interest is used and rates are subject to market conditions.
Forfeiture of Discount Credit
- Transfer of property ownership prior to close of discount cycle.
- Death of taxpayer (only if surviving owner wishes money to be released).
- Final balance due bill is not paid by due date indicated on statement.
- Refund of prepayment moneys by the discretion of the Fiscal Officer.