When reviewing the financial statements of Crescent City, Councilwoman Peggy Doubleton noticed that the city uses an Allowance for uncollectible property taxes. This seemed odd to her because the city had recently sold several acres of land that had been seized for nonpayment of property taxes. At the next council meeting, she moved that the city no longer provide for uncollectible property taxes because the city had the right to seize property for nonpayment of taxes. As a result, it could eventually recover any lost revenue. Further, by eliminating this allowance, revenues could be increased immediately, and additional services could be provided without incurring a deficit. Would you vote for Councilwoman Doubleton’s motion if you were a council member? Why or why not?
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