Tax
bills need to be paid before sale
By:
JESSICA SINGLETON
The deadline
for property tax payment has come and gone, but homeowners still
have time to pay their tax bill before it is up for sale in April.
Owen County Sheriff’s Office Deputy Clerk Tracy Lucas said
the next payment deadline is Jan. 31. Until this deadline, homeowners
can pay the bill with a 5-percent penalty. After the deadline,
she said the penalty for late payment raises to 21 percent. However,
if the unpaid bill is sold in April, the fees could go even higher.
Lucas said the Owen County Sheriff’s Office holds the bills
until April. At that time they will gather all the delinquent
bills and put them up for sale. She said a date for the sale has
not yet been set. Those that are not sold are handed over to the
Owen County Clerk’s Office who puts a lien on the property.
Owen County Clerk Joan Kincaid said companies and individuals
can buy the delinquent bills and put an additional lien on the
properties.
“(This past year) a company would come in and buy a large
group of tax bills,” she said.
She said once the bill is sold, homeowners must contact the company
holding the bill to make arrangements to pay the taxes and all
the additional fees.
According to the Department of Revenue, the tax bill holder can
charge the homeowner only the amount listed on the bill plus interest
and fees. However, the allowed fees can be more than double the
face value of the bill. The holder can legally charge attorney’s
fees up to 100 percent of the face value for bills less than $350.
For bills valued at $350 to $700, the limit is 80 percent. For
bills valued more than $700, the maximum attorney’s fee
is 70 percent of the face value. Companies can also charge all
the collection and litigation costs and up to $100 in administrative
fees.
The Department of Revenue requires the bill holder to notify the
property owner within 30 days of the purchase. Also, they are
required to give at least 15 days notification prior to taking
any action.
Kincaid said in previous years, very few bills were sold, but
this past year, 119 tax bills were purchased by companies. She
expects a similar number to be sold this year.
“This has happened in the larger counties in the state for
years, but it affects all 120 counties now,” Kincaid said.
Before the April sale, payment can be made at the Owen County
Sheriff’s Office. Afterward, unsold bills can be paid at
the Owen County Clerk’s Office.
“The way to avoid all of this is to pay the bill,”
Kincaid said.
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