How the Collector's Manual states to handle them.

In a manual for Treasurers/Tax Collectors paid for by you through taxes (nothing is free), there is a process for dealing with "bad checks" Why spend grant money, which is taxpayer money (as in income taxes, sales taxes excise taxes and on and on) on something that is already provided for. Perhaps it is another example of the government creating something so they can say they are doing something and we are solving issues! just my opinion there.

Seems pretty simple - get the collectors manual, make some copies and post in town offices and there you have it - a policy which is posted and already in existence and no need to stretch it out for thirty minutes or several weeks. Again, this is my opinion.

This is from the Collectors manual. Bad check add the fees back to the real estate or excise bill. If its for a permit/license - revoke the permit/license Not rocket science, all the rules are in the collectors' manual!

Processing Bad Checks

1. All too frequently, collectors receive dishonored checks back from banks.

In most instances, the taxpayer had tendered the check believing it would

be honored. However, the bank did not pay it because (a) the taxpayer's

balance was insufficient when the check was presented, or (b) the

taxpayer, had closed the old account before all checks had cleared.

a. In some instances, a taxpayer tenders a check in bad faith, with

an intent to defraud.

b. Whoever, with intent to defraud, makes, draws, utters, or

delivers any check, draft, or order for the payment of money,

with the knowledge that the maker or drawer does not have

sufficient funds at the bank, must be guilty of attempted

larceny; and if the money, property, or services are obtained

thereby, the person must be guilty of larceny. [266:37]

2. When notice is received from a bank that a check cannot be processed,

the bank notifies both the issuer and the town.

3. The collector may attempt to redeposit the check simply by calling the

bank to verify the presence of sufficient funds.

4. If the collector cannot successfully redeposit the check, he may pursue

one of the following alternatives:

a. The collector can reverse the payment and reestablish the

receivable as an unpaid balance.

b. The collector can pursue collection using the district court.

[218]

5. The collector may impose upon any person tendering an insufficient

funds check a penalty of 1% of the amount of the check, or $25 for a

check for less than $2,500. [60:57A] Any person so assessed may

appeal to the Commissioner of Revenue if aggrieved, and the

Commissioner may abate the penalty if he determines that the person

tendered the check in good faith, and with reasonable expectation that it

would be paid.

posted by Jeff Bennett