Do Delinquent Property Taxes Mean No Income Tax Refund?
If you owe back property taxes, will you not get a tax refund? (via Ask) Your Federal income tax refund is likely safe because property taxes are collected by state governments. Your state income tax refund is also probably safe, but that’s because the state has a much easier way to collect property taxes in arrears: tax lien sales. Normally once a year, counties or states will “sell” the rights to collect unpaid property taxes on a property to whomever wants to buy them. The buyer then jumps to the head of the line on most liens placed on the property (like mortgages and judgments, but not other state tax liens). When you go to sell the property, you’ll have to cough up the money to pay off those liens. There are also tax deed sales in which your property is sold out from under you to pay off your delinquent taxes. Obviously this is far worse than just having a lien placed on your property. So the answer to this question is no, your tax refunds will likely not be affected; but you mig
