Erie County may get back into the business of collecting overdue taxes, a business it abandoned four years ago to save money.

County lawmakers dusted off a plan Tuesday to create a tax collection office and to hire 8 to 10 employees to collect back property taxes.

The plan, with an annual price tag of $700,000, is viewed by some legislators as the best alternative to the sale of county tax liens, given the county control board’s opposition to a tax lien sale.

“Forever, the county collected its own taxes,” control board Executive Director Kenneth Vetter told the Legislature’s Finance and Management Committee on Tuesday. “On a long-term basis, could it be better for the county to get back in the tax lien business?”

Vetter was referring to the county tax collection office that was disbanded in 2003 when budget cuts and layoffs decimated the staff. He said the prospect of reopening that office and raising even more back-tax revenue for the county is at the core of the control board’s opposition to a tax lien sale.

County officials didn’t buy his explanation about why the Erie County Fiscal Stability Authority rejected a sale that would generate up to $40 million in revenue over time. Most of that money would have gone into the county’s reserve account.

“I think the Authority acted irresponsibly,” Comptroller Mark Poloncarz said. “I think they owe the people of Erie County more than an explanation. They owe them an apology.”

Poloncarz accused the control board of rejecting the tax lien sale and then waiting months before advocating an alternative.

If the county pursues the creation of an internal tax collection department, it would mark a sharp reversal of its decision four years ago to close the tax collection office as a way to save money.

Even after Vetter floated the idea Tuesday, lawmakers wondered if he was sincere or simply offering a political cover for the control board.

“It’s funny to me that, all of a sudden, this is coming out,” said Legislator Robert Reynolds, D-Hamburg. “If we should be back in the tax collection business, that decision should have been made in March.”

County lawmakers, angry over the board’s indecision on the tax lien sale, claim the action amounted to a $40 million mistake.

“I don’t believe the Authority looked out for the long-term interests of the taxpayer,” said Majority Leader Maria Whyte, D-Buffalo.

Vetter acknowledged the board’s “lack of consensus” on the tax lien issue but said the prospect of getting a large piece of cash up front doesn’t mean the sale is a good long-term solution.

“Having the biggest chunk of money right now isn’t necessarily the best possible deal,” he told lawmakers.

While legislators seem ready to explore new ways of collecting back taxes, aides to County Executive Joel A. Giambra will continue to work on a new tax lien sale.

“We’re going to see if we can salvage this through ne gotiation , ” Budget Director James Hartman said. “I think we have a responsibility to try and salvage it.”

Hartman said the administration will continue talking to the two private companies that offered to buy the tax liens in hopes of working out a deal that appeals to control board members.

pfairbanks@buffnews.com

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