If you owe three years worth of real estate taxes on a piece of property there’s a good chance the property is going on the auction block. Cowley County commissioners recently approved a tax foreclosure sale involving approximately 200 properties with taxes three years overdue.
Delinquent notices that went out in April had good results. Many taxpayers paid their overdue bills and kept their properties from foreclosure.
“We had about 470 letters go out, so we got a good response from the letters and people were able to come in and catch up on some taxes,” county treasurer Kathy Foust said.
The properties left with unpaid taxes after the April notice became eligible for the foreclosure sale. The process leading up to the sale is a lengthy one and includes publication of delinquencies in the local newspaper. It may be fall before the process is complete and the actual sale is held, according to Foust.
“They have until an hour before the sale to redeem (the property).” she said. “At the present time, if you owe all three years, you have to pay it all at once.”
The last tax sale was in 2006. Foust said she has noticed since then more people are coming in to set up payment plans and more people are using credit cards to pay their bill.
She says the sagging economy is making it more difficult for property owners to pay their taxes on time.
“With everything else raising – the grocery bill is raising, the gas bill is raising. Everything keeps going up,” Foust said. “People are having a hard time.”
While payment plans are helping, they’re also costing the taxpayer more in the long run since the interest keeps accumulating until the bill is paid off. The same proves true for those using credit cards.
The credit card companies charge a 3.49 percent interest fee. “That’s $3.49 for every $100 it’s costing them,” Foust said. “Some want to pay that way.”
The treasurer’s office doesn’t receive any of the proceeds from the credit card companies’ fees. Clerks always explain the additional cost to property owners. Some change their minds and decide against using a credit card while the additional expense doesn’t matter to others, according to Foust.
She’s also noticed more people are taking advantage of the revitalization programs the two larger cities offer. Those who live in areas where home improvements are covered in the program receive a rebate on their taxes, Foust said. And it doesn’t have to be an old structure.
New buildings are covered to if they are in the approved areas.
