For the small cost of $8.41, an 83 year old Michigan man lost his property. If he had sought out professional advice he should have been able to avoid this catastrophe.
Last year a Michigan court of appeals allowed for the seizure of a rental property purchased for $60,000 in order to satisfy a delinquent property tax debt of $8.41. The owner forgot to pay his $496 in 2011 property taxes, discovered the error, and in 2013 paid the amount in full. He did however fail to properly account for interest and ultimately underpaid by $8.41. The County foreclosed on the property and sold it at auction for $24,500 to satisfy the $8.41 along with $277 in additional penalties and interest. The county refused to refund any of the surplus from the sale.
States like Michigan, Massachusetts, Minnesota, North Dakota and Oregon have aggressive property seizure laws intended to deprive criminals of their spoils and means of continuing their nefarious behavior. The underpayment of property taxes is not a crime in Michigan but a law intended for criminals seems to have been perverted for no other reason than to add to the state’s general fund. Other states will at least return any surplus after the tax debt has been satisfied.
If you have unpaid taxes, either federal or state, you need to at least consult with a licensed tax practitioner. Experienced tax pros know how to make sure that your payoff is correct and binding. You also have rights in the face of tax seizures and we know how to protect those rights. Contact Weiss & Associates for help.