06-F Tax Proposal - McCreary - Laserfiche WebLink

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CI'rY OF PALES'i"INE - REPOR'1' ON COLLEC7'ION OF ELINQt1EN2' PROPER2"Y TAXES DEFINITIONS AND COMMENTS REGARDING CHARTS 3, 4 AND 5 Lawsuits/Judgments From October 1, 1999 through September 30, 2000, the Firm has filed 76 delinquent tax suits on 100 parcels, totaling $96,385, for the collection of delinquent taxes. Often property owners enter into payment arrangements subsequent to the filing of suit. Further prosecution of these delinquent tax suits is abated as long as the taxpayer complies with the payout agreement. If the property owner makes no effort to pay after suit is filed and citation is served, or if the taxpayer defaults on a payout agreement, judgment is sought. The Firm has obtained 40 judgments on 53 parcels, totalling $40,270 in delinquent taxes. The Firm held 4 tax sales in which 32 parcels were posted for sale to recover $35,307 in delinquent taxes. Bankruptcy Accounts on which collection activity is prohibited by automatic stay under the United States Bankruptcy Code. The Firm has filed 20 original proofs of claims for pre-petition taxes, involving 25 accounts for $22,205 in delinquent taxes. The Firm monitors the progress of bankruptcy cases and filed appropriate motions and objections with the Bankruptcy Court to insure that the tax claims and the tax liens are accorded the highest possible priority. The amount of the claims which will ultimately be paid, particularly in Chapter 7 cases, cannot be estimated. Insolvent Personal & Abandoned Real Property Tax accounts on which delinquent notices mailed by the Firm have been returned to us by the U. S. Postal Service as undeliverable or accounts for which the Appraisal District or Tax Office has been unable to determine an address. The Firm is engaged in an extensive address research program. When new addresses are found, notices are promptly sent. However, without an accurate address personal property delinquent taxes are, as a practical matter, uncollectable. Some of the these accounts represent mobile homes which are no longer in the County. In most cases, the Appraisal District has no knowledge of the whereabouts of the owners of these mobile homes. As such collection activity against the owners is effectively precluded, these accounts are uncollectable. There are numerous business personal accounts where the business is no longer operating. When a business ceases operation, often the owner leaves the County and/or State. Even if the owners of the business can be located, they are usually "judgment proof". Many of these businesses were corporations which are either defunct or have no assets. The whereabouts of the owners of a few real property accounts are unknown. These are unimproved lots or vacant acreage tracts making it extremely difficult to locate the owners. In some cases, the record owners are deceased and their heirs are unknown or cannot be located. The owners of these vacant and abandoned properties will be served with citation by publication and the properties sold at tax sales. McCreary, Veselka, Bragg & Allen, P.C. ► ~ ~I R 17 ~ ~ 7