Property Tax Deferral – a new concept. Post 76:

Elderly or disabled homeowners may defer property taxes

Charles M. Shannon, Chief Appraiser Fannin County Appraisal District

Feb 16, 2008

Texans aged 65 or older or who are disabled may postpone paying delinquent and current property taxes on their homes. They may take advantage of a tax option called “tax deferral” by signing an affidavit at the Fannin County Appraisal District office.

“If the affidavit is on file, an older homeowner or one who is disabled cannot lose a homestead because of delinquent property taxes,” explained Charles M. Shannon, Chief Appraiser Fannin County Appraisal District.

Once a homeowner files a tax deferral affidavit with the appraisal district, no taxing unit can start or continue a lawsuit for delinquent taxes as long as that person owns and lives in that home.

Two new provisions in the law now address how an age 65 and older or disabled homeowner with a pending sale to foreclose on the homestead’s tax lien may halt that sale. And, the law extends the tax deferral to the surviving spouse of an individual who deferred the taxes on the homestead if the surviving spouse was 55 years of age when the deceased spouse died.

Shannon stressed that the tax deferral only postpones paying taxes on the home; it does not cancel them.

During the deferral time, taxes and interest of 8 percent per year continue to add up.

He said, “When the qualified homeowner or qualified surviving spouse no longer owns and lives in the home, the taxes become due. If the taxes are not paid, taxing units can then sue to collect all the deferred taxes and interest.”

There is no penalty on the taxes during the deferral time. However, filing the deferral affidavit will not forgive the penalties that are already due. Also, if the taxes remain delinquent after the deferral ends, a taxing unit may charge an added penalty if the account goes to a delinquent tax attorney beginning on the 181st day after the deferral ends.

See the entire story: http://www.ntxe-news.com/artman/publish/article_43859.shtml

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Coach Mitch’s REFLECTIONS

I like this

In these days of economic dislocation, it is important that citizens get some consideration from the onerous reach of government.

We need a better way

What government has imposed (taxes) it can choose to not collect (tax deferral).

There is a quickly growing percentage of people who cannot keep up with the ever increasing costs that our governments are imposing on US.

The cost of government is probably our biggest cost. Think about it. I’ve not done the research for some time but I’m sure the percentage of bite has not gone done. The government has long taken at least 60% of our income. You do the math.

Add up all the taxes that you know about and then ask the question, “Are there any taxes that I don’t know about.” You bet there are. There were 119 taxes on making a loaf of bread! The Grace Commission found that fully 33% of government budgets are waste, fraud and abuse. That’s enough to pay off the national debt!

Property taxes are outmoded

There used to be a time when landed persons were few in number, had great wealth and held great sway. The landed gentry were looked upon as the proper subset of the population that should pay the bulk of the taxes. Property taxes may have been a good idea 250 years ago but their day has passed.

We need a better way to tax

Today we have many ways to tax. The most onerous is the property tax because it gives no choice to the tax payer. We must have a roof over our head. Renters pay the owners taxes through higher rents. Ever higher property taxes are squeezing homeowners out of the very homes where they raised their families and just at the time in life when they need their friends and family the most – in their elder years, when they are on less or fixed incomes.

Consumption taxes allow the taxpayer to choose whether to purchase the item. The tax might have the effect of pricing the item out of reach. That depresses the economy. However, with the pressure of property taxes removed, rents should go down and homeowners will have thousands more spending power. That improves the economy.

Income taxes were unconstitutional prior to the 13th Amendment in 1913. That was also when we created the private Federal Reserve and required the popular election of Senators; all acts which have significantly diminished our liberty.

The Flat tax has the benefit of eliminating the onerous effect of special interests on our tax system. It also allows the poor to have some self-respect because they can know that they are taxpayers instead of tax takers.

The punishment must fit the crime

If someone cannot pay their property taxes, how is it reasonable that the punishment is to take their house? I do not see how society is benefited by this action. I do not see the fairness in the harshness of this punishment. If undressing a prisoner is considered torture, as in Abu Gareb, then how is it reasonable and permissible to take someone’s home, just because they cannot pay their taxes?  How is taking someone’s home not cruel and unusual punishment?

The law is on your side

While I think that property taxation should be changed, it is currently the law of the land. As in every human endeavor, there is opportunity waiting to be taken advantage of.

Millions today are in mortgage foreclosure. It is known that at least 50% do not talk to anyone about their situation. Coach Mitch’s “Ridiculously Simple System…” allows you to help those who have no one else to turn to.

Tax delinquents are like everyone else. They are embarrassed that they cannot pay their taxes. They are fearful of the consequences. They become frozen with this fear. They do not look for answers. They wait for the day of eviction with trepidation and their only hope is that a white knight will appear and save them.

You are the Knight in White

You do not have competition for these properties because this is an untapped market. There are very few real estate investors who even know about tax delinquent property, much less seek to invest in it.

No one is talking to the idea of dealing with tax delinquents prior to the tax auction. This is an idea unique to Coach Mitch. I have developed my idea into a system and it is so easy to do that I had to label it the Ridiculously Simple System. While the system works well, it is not obvious.

If you are seeking a way to move from the rat race to a more comfortable place, then Coach Mitch’s “Ridiculously Simple System…” can make a good case that you can be an ace in the house chase. Starting with this good knowledge base and operating with empathy and grace, you can put a good face on a delinquent taxpayer’s disgrace.

SeeCoach Mitch’s “Ridiculously Simple System…”for details.

Git ‘er done –