Questions on Property Tax Laws

In the United States, property taxes differ from state to state and they are often based on the fair market value of the property. These rates have increased to mirror and exceed similar rates in other countries with certain states in the country exceeding 5%. Also, in some states, property tax is separated into two separate taxes—one that is imposed on the land value and the other on the value of the building.

Listed below are a few questions answered by real estate lawyers on property tax related issues.

I am retired and have property tax of $6000 to pay. How can I prevent my house from being sold by the government for back taxes?

If you are not able to raise the money, you could look at a Chapter 13 bankruptcy. That might help you pay the arrears over the next 60 months but you would have to continue paying the future taxes as they become due. There isn’t an option through which you get to keep your house and not pay the taxes.

If I have a property tax lien on a property in Texas, is the county assessor allowed to place a lien on another property that I own in the same state, even if they are totally unrelated?

Property taxes are attached to a specific tract of land. They can’t be attached to another property, nor can they become personal liabilities of the owner. In order to collect the property tax, the taxing authority can place a lien on that specific piece of property and then foreclose on it. They cannot go after the owner or the owner’s other assets for payment of the taxes.

If an individual does not pay his property tax and the county liens the property for back taxes, isn’t the county tax collector supposed to send a letter that states that taxes are owed, the exact amount owed, and the date they are due, before the property is sold at a delinquent tax auction?

The county mails out tax bills annually and after that it becomes the property owner’s responsibility to pay the bill(s). If the taxes haven’t been paid, the county assumes the property owner knows about the tax and is delinquent. Also, the owner is legal obliged to visit the County Tax Office and see if the county is willing to enter into an installment payment plan for unpaid property taxes. However, the county is not legally required to send more notices to the owner stating that since he or she is in default the property will be placed on the Sale List for Delinquent Taxes.

I recently bought a house in Yonkers from the first owners and want to know how I can get my property tax decreased on it.

The links below contain three documents that you need to use to file a grievance in the City of Yonkers and appeal the assessment that was made on your house.

Grievance Complaint on Real Property Assessment
RPTL-730 - Petition for Small Claim Assessment Review
What To Do If You Disagree With Your Assessment

The link in PDF format can be accessed here: http://www.yonkersny.gov/Index.aspx?page=1262

It seems that, without my knowledge, my spouse got my name removed from our Property tax bill. How would she have done this?

The law requires that the property bills be sent to the "property owner of record". For someone to change the name on a tax bill, a new deed needs to be created and recorded. If you check with your Country Recorder’s records, you could get a copy of the latest deed filed. Alternatively, it is possible that the bill might have contained an error or oversight. The records on file should clear things up for you.

When property taxes are not paid by the due date, the taxing authority will assess the penalties and the interest. It could also act and enforce its lien. While these procedures vary from state to state, the lien can usually be sold by the taxing authority to a third party, who will then attempt collection. Usually, in most states, the taxing authority is allowed to seize the property and offer it for sale, generally at a public auction.