During a recent Finance & Claims Committee meeting in Norwalk, the city’s tax assessor, Paul Gorman, provided an update on the status of income and expense statements from local businesses. This year, the city issued approximately 1,900 requests for these statements, which are crucial for determining property assessments. However, a significant number—about 655 businesses—failed to respond by the deadline, leading to the issuance of penalties.

Gorman noted that the penalties for not submitting these forms can be substantial, amounting to a 10% increase in property assessments. This has resulted in a total of $2,445,206 in new penalties being billed to businesses that did not comply. The penalties vary widely, affecting both small mom-and-pop shops and larger corporations, with some penalties reaching into the hundreds of thousands of dollars.

The tax assessor acknowledged that this year’s response rate appears to be higher than in previous years, although he has not yet compared it to historical data. He expressed concern over the lack of responses and the resulting financial implications for both the city and the businesses involved. Many businesses have reached out to his office, seeking to contest the penalties or express confusion over the process.

To improve compliance in the future, Gorman announced plans to implement a second mailing halfway through the filing period next year, reminding businesses of their obligations. This proactive approach aims to reduce the number of penalties issued and ensure that businesses are aware of the requirements.

The discussion highlighted the importance of timely submissions for income and expense statements, not only for accurate property assessments but also for the financial health of local businesses. As the city moves forward, the Finance & Claims Committee will continue to monitor the situation and seek ways to enhance communication with property owners to foster better compliance.