Property with tax arrears owing

[jima]

I am in the process of acquiring a property (strictly recreational, no services, no municipal road frontage) that has a large amount of taxes owing on it. There is a outstanding tax certificate on it and in the past 1.5 years the taxes owing have doubled.
Other then letting it go to tax sale and making outlandish beer bets with you guys about if it redeems or not has anyone ever approached a municipality about the tax arrears. Are there any options for me?
?   Has anyone had success getting a municipality to abate owed back taxes?
?   Is there any higher authority (IE OMB?) I can appeal the increase in taxes to try to get some relief from the huge increase in the past 1.5 years?
?   Is there an accounting 'request' I can make of the municipal bureaucrat that would ?convince? them to consider reducing the taxes?

Any idea?s information would be appreciated.

[Dave2]

Jima: 

I think it is important to not to put the cart before the horse in a case like this.

Assuming it is a regular real estate offer of purchase and sale the seller should be
giving you clear title, which includes payment of all outstanding claims. 

In your closing; the payment should be split into two sums; one to the municipality for the outstanding taxes if the current owner cannot come up with the money and the remaining to the owner(s). 

In general I believe there is not much you can do for back taxes when property is owned by someone else.  Once you are the owner you can appeal tax burden for FUTURE in regular way. 

[Frank]

When a property is placed into a registration situation the Municipality adds all kinds of taxes related to their costs of conducting the process that leads to a tax sale, so what you are seeing as an increase in tax levels may be additional costs being added.  The Municipality will provide an accounting, but it would have to go to the current owner.

There is absolutely no way on earth that any Municipal Treasurer will give you one inch of reprieve on these costs, or the original taxes and penalties for non-payment.  You are whistling dixie ... so-to-speak.

Dave is correct in that if the increase is due to erroneous assessment then you should appeal your assessment once you take ownership.

 

[jima]

Thanks for the replies. I?m getting this property through non-conventional means. I was aware of the tax situation before I started down the road. I?m fully prepared to take care of the taxes but I thought there might be a way of seeing if I could get some relief. I had hoped that someone had been down this road and had a positive outcome?I guess I'll keep whistling. Thanks again.

[Dave2]

Thanks for the replies. I?m getting this property through non-conventional means. I was aware of the tax situation before I started down the road. I?m fully prepared to take care of the taxes but I thought there might be a way of seeing if I could get some relief. I had hoped that someone had been down this road and had a positive outcome?I guess I'll keep whistling. Thanks again.

Jima:

As Frank said a Municipal treasurer has very little room to meneuver.  You have to remember they also collect the taxes for the School Board and upper levels of Muncipal government (E.g county).  

Hopefully your purchase price from the owner more then compensates for the taxes you have to pay. 

[ErnestBidder]

  There can be certain circumstances over time that can negatively affect charges against a property. It is important that historical documents be retained over some years, if not decades. Some things, such as former structures on the property, assessment records, literally anything might not now have affect, but this can change over the years. Under fairly narrow circumstances, it is possible to structure a reduction in back taxes, but it takes some time, and a persuading reason. I do not wish to reveal private information, but one must consider their own situation at such time as it may present itself. Anyone seeking some further direction, in a specific case, can pm me for assistance.

[jima]

Thanks for the replies and information and on this topic. I had a good meeting with the municipal treasurer and while I didn?t get a reduction in back taxes I did get favourable terms which was more than fair.