How is the maximum amount of delinquent taxes that may be anticipated determined?

The maximum amount of delinquent taxes that may be anticipated is determined by considering the percentage of delinquent taxes collected in the prior year. This method allows municipalities to make informed predictions based on historical data. By analyzing the performance of tax collections from previous years, particularly focusing on how much of the delinquent taxes were successfully collected, officials can set realistic expectations for future collections. This approach takes into account the economic environment and the effectiveness of tax collection efforts, making it a reliable foundation upon which to base future budget considerations.

Estimating the maximum amount of delinquent taxes based on past collection percentages gives a more nuanced understanding of expected revenue and helps municipal planners strategize effectively around potential shortfalls or surpluses. This practice ensures that budgets remain grounded in empirical evidence rather than speculation, thereby promoting fiscal responsibility and transparency in the budgeting process.