Tax collector and treasurer report rising cannabis excise, warn of postage costs; consolidation option shows modest savings
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Summary
Treasurer Rory and interim presentation for Tax Collector Laura told the council on May 28 that Holyoke’s cannabis excise receipts have risen in recent years, collection staff emphasize payment plans and outreach, and postage costs increased after the deputy collector stopped covering mailing fees.
Rory (Treasurer) and Laura (Tax Collector) briefed the council on tax collection, cannabis‑excise receipts and operational changes on May 28. Laura was on leave; the mayor and treasurer presented in her stead and praised her collection and outreach work.
Rory reported that Holyoke’s cannabis excise receipts have trended upward. He said the city received $640,895.23 in fiscal 2023 and $702,295.50 in fiscal 2024. For fiscal 2025 through three quarters, he said the city had collected $683,159.09 and that the fourth quarter figure will arrive later; March‑quarter collections historically have been the largest. Rory and councilors noted sales‑tax/excise receipts can vary with market changes and competition among operators.
On collections processes, Rory and Laura described active outreach before imposing liens. They said the tax collector’s office offers payment plans and attempts to contact taxpayers by phone and social media to arrange terms; only properties that reach lien or tax‑title stages are later advertised. Councilors and staff emphasized the office’s preference for written payment arrangements and noted staff coordination with permit and licensing divisions to block permits or licenses when taxes are due.
Rory explained postage increased because the deputy collector, who formerly covered billing postage, no longer pays those costs. That change moved postage expense to the general fund and contributed to a postage line increase in the treasurer’s budget (object code 53420). He said the administration is exploring electronic delivery and other efficiencies (ACH payments to vendors) to reduce future postage reliance.
On the optional treasurer–collector consolidation shown in the budget book, administration staff explained that part of the difference between separate budgets and an optional consolidated budget was an elected treasurer line and transitional budgeting. The optional consolidated budget shows roughly $43,000 in salary savings if the offices are merged and statutory modernization provisions apply; the mayor and treasurer noted that some line‑by‑line differences reflect internal reassignments (for example, payroll staff moving under a comptroller line in the optional budget). The treasurer said some transitional one‑time costs (such as Munis upgrade support) are included among professional‑services requests and are not expected to be recurring.
No formal vote or decision on consolidation was taken at the hearing. Councilors asked for additional documentation of the optional budget and of recurring versus one‑time costs before any formal vote on structural changes to elected offices.
