Runner Urges Sale of Unpaid Tax Bills

From Reuters.com:

California should sell its claims to unpaid taxes to the private sector to raise money to bolster its finances, a state tax official said on Monday.
…
“Selling aging debt is a common practice in the private sector and has also been used successfully by many local governments,” George Runner, a member of California’s Board of Equalization, said in a letter to Governor Jerry Brown and the legislature’s leaders.
…
He estimates California agencies that collect taxes and fees have more than $20 billion in outstanding accounts receivable, either as active or written-off taxes they are owed.

If California were to sell claims to that money it would potentially have to do so at a deep discount, Runner said.

But something is better than nothing for the state’s cash-strapped government, Runner added: “You don’t get your full dollar value, but you are getting some money in the door as opposed to not getting any.”

–
Read Runner’s press release

Leave a reply

Name (required)

Mail (will not be published) (required)

Website

CAPTCHA Code