Please see below for a series of FACTS about the Undergrounding of Utilities Project assessment prepayment option.
- What is the value of prepaying the assessment for the undergrounding project?
The primary benefit of electing the one time prepay option enables the property owner to avoid interest and other charges which are added to the assessment if paid annually. Also, by prepaying, property owners will reduce their overall assessment amount. Once you prepay your obligations for this assessment are concluded.
- What is the cost of my prepayment?
If you need specific information regarding your prepayment amount, please refer to your June assessment Notice previously sent to you or enter your address into the cost search tool: https://undergrounding.info/cost-search-tool/
- How do I prepay the assessment?
Property owners interested in participating in the initial prepayment option for their undergrounding of utilities assessment should make their payment prior to the September 1st, 2017 deadline.
To prepay an assessment, please make your check payable to the Town of Palm Beach, Florida and mail it to the Town of Palm Beach, Attention: Finance Department, P. O. Box 2029, Palm Beach, Florida 33480. Please be sure to write the assessment parcel number on your check.
- Why should I pay by September 1st?
If you elect to prepay the assessment now, the town is asking for your payment by September 1st, 2017. Doing so enables us to work with the Palm Beach County Tax Collector’s office to ensure the 1st annual assessment payment will not appear on your November tax bill.
- Is this the only opportunity I will have to prepay the assessment?
Property owners may prepay the assessment anytime up until the project is funded by the issuance of general obligation bonds to fund the Town-Wide Underground Utility Project.
- What does the town do with my prepayment since there is pending litigation concerning the funding of the project?
Assessment prepayments will be held in escrow until current litigation is resolved.
- If I do not prepay, how many annual payments will there be?
There will be 30 annual payments.
- What is the interest we would be paying if the annual payment is elected?
If the assessment is paid annually interest is added to the payment. For year 1 interest is estimated to be 3.81% and may vary annually if short term debt is used. Short term debt is planned for financing until the general obligation bonds are issued. Annual interest rates will be locked when financing is obtained through the issuance of general obligation bonds to fund the Town-Wide Underground Utility Project.
- What are the additional charges associated with the annual payment?
There will be additional overhead charges such as fees paid to the Palm Beach County Tax Collector to coordinate assessment collection which appears on your annual tax bill.
- If one did not prepay, then what is the annual amount?
The annual assessment is different for all parcels. Go to www.undergrounding.info and use the assessment cost search tool to show your prepay amount and estimated annual payment.
- How do I find more information about the project?
Another option to obtain information is to go to https://undergrounding.info and use the “Contact” tool on the website.
Property owners may also send an email to underground@townofpalmbeach.com or call 561-227-7077 and leave a voicemail which are typically returned within one business day. Whichever method is used to request information, please tell us the parcel control number if available, owner’s name, property address, your phone number to call or email address to send answers to assessment related questions.
- When one pays property taxes in advance, one gets a discount. Does the prepay amount contain a discount?
The assessment prepay amount allows the property owner to avoid all interest payments and financing associated with the annual payment option.
- Is my assessment tax deductible?
Assessments are not deductible from your annual income taxes. However, the IRS allows assessments for local improvements to be used to increase the cost basis of the property, which may reduce the amount of capital gains tax you pay on the sale of your property. (Refer to IRS publications 551, 530 and 17). Please consult with a tax professional to obtain information about your specific property.
For more undergrounding assessment FACTS, please visit: https://undergrounding.info/assessments-faqs/
You can review the prepayment reminder letter here: https://undergrounding.info/prepayment-option-for-underground-townwide-utilities-assessment/
