A lot of taxpayers don't realize the severity of not paying your state property taxes. Unpaid state property taxes can cause the government to put a lien against your property. Until that lien is paid, the property cannot be sold, transferred or even refinanced. If the taxes remain unpaid, the property may be sold at a tax lien sale, regardless of whether or not the owner has equity in the property.
The state property tax professionals at Paradigm Tax Group can help you with your state property tax situation. We have a team of state property tax experts that are well versed in tax law. Paradigm offers national resources and local expertise in state property tax issues.
Oftentimes, local governments will negotiate with property owners regarding unpaid state property tax. The tax professionals at Paradigm Tax Group are experienced in representing our clients during the negotiating process. Many liens can be converted into payment plans. Usually, the governing municipality will charge interest, fees and other penalties for unpaid state property taxes. However, most governments can and will roll these fees into the owner's payment plan. A property owner will be required to file an application for this payment plan, which is subject to approval by the governing body. They will also be required to prove the hardship that led to their delinquency, and prove that the hardship is recent. In other words, if the property owner lost their job ten years ago, but only missed paying the prior year's state property tax, they will most likely not be able to claim recent unemployment as a hardship. A Paradigm Tax Group state property tax consultant will ensure that the plan is equitable and manageable.
Several states offer a tax reduction or tax abatement program for cases of extreme hardship. A tax reduction in this type of situation lowers the amount of tax owed. It may also reduce or eliminate the interest, fees or other penalties. A tax abatement eliminates the debt entirely. Generally, it includes any interest, fees and penalties. Paradigm's qualified state property tax consultants can explain which programs are available in the property owner's municipality and assist them with the completion of the appropriate application process.
State property tax liens will not disappear on their own. Ignoring the problem will result in increased interest and penalties, and may have the devastating consequence of having the property sold at a tax lien auction. A Paradigm Tax Group state property tax assistant can help you take the appropriate steps to protect your rights as a property owner. We can advise you on the best course of action to resolve any particular state property tax situation.