Paying property taxes if you have near zero income?

[sethmachine]

Hi,

Suppose someone bought a home, fully paid off the mortgage, and has little to no income (they stopped working either intentionally or unintentionally).

If they can't pay property taxes because they do not have the money and no income to generate the property taxes but they own the property 100%, what will the state/town do? Surely if the property is valued around $500,000 and property tax is something like $5,000, the town can't just seize the whole asset.

The person also never plans to work again or increase their income.

[greenskeeper]

it would have to go through procedure, but certainly the taxing authority could put the property up for auction

with property taxation you never truly "own" your home

I'm not a fan of it, and would rather see it replaced with an increase in sales tax with fewer or no exemptions

[Nutria]

Surely if the property is valued around $500,000 and property tax is something like $5,000, the town can't just seize the whole asset.

Not immediately, of course, but they'll add penalties + interest, and slap a tax lien on it. Then you don't pay them next year and the year after...

Then they foreclose (or sell the lien to an investor who forecloses).

[Gailete]

Hi,

Suppose someone bought a home, fully paid off the mortgage, and has little to no income (they stopped working either intentionally or unintentionally).

If they can't pay property taxes because they do not have the money and no income to generate the property taxes but they own the property 100%, what will the state/town do? Surely if the property is valued around $500,000 and property tax is something like $5,000, the town can't just seize the whole asset.

The person also never plans to work again or increase their income.

In my area, you get your name and property listed in the paper as being delinquent and the third year if you haven't paid they sell your property for what they can. The property you are describing is what those real estate flippers talk about buying, 'a distressed property'. Get it for cheap at a tax auction and then sell it for it's real value.

I don't know how anyone can live like this as not only are there taxes to pay, unless all heat and cooling, etc. are done by passive solar heat, etc. how is the guy paying his utility bills and grocery bills, and medical expenses, just fill in the blank. If the person ends up out of work for the rest of his life due to a disability I would say they need to sell out immediately and get something much cheaper so they have the proceeds to live on. If they intentionally said take this job and shove it, I hope they have some idea how they will live on moonbeams and wishes. Kind of hard in todays world. Taxing bodies do not care why you haven't paid your tax bill, they only care about getting the money and will embarrass you in the paper to boot showing that you are a deadbeat. At least that is how they do it in my area.

[JoeP]

it would have to go through procedure, but certainly the taxing authority could put the property up for auction

with property taxation you never truly "own" your home

I'm not a fan of it, and would rather see it replaced with an increase in sales tax with fewer or no exemptions

Yep, nobody owns a house in the literal sense, unless it is a mobile home. Even then, as soon as you plant it, you'll need to pay the local government "rent" even if you never use the services they provide.