Reference no: EM132478923

Reck: Accounting for Governmental and Nonprofit Entities

Research Case - Delinquent Taxes and Taxes Liens. When property taxes become delinquent, governmental entities often accrue interest and penalties on the delinquent taxes or choose to sell the rights to collect such taxes, interest, and penalties to external parties. Select a local municipality of your choice. Using information from the government's website, respond to the questions below. (Hint: Search for delinquent tax collection process, delinquent property taxes-FAQs, tax lien, etc.)

Required

Question a. What happens if a taxpayer fails to pay property taxes on time? When do taxes become delinquent? What happens if a taxpayer fails to pay delinquent taxes? At what point does a tax lien attach to the property? What interest charges and other penalties or fees are assessed to the delinquent taxpayer?

Question b. If delinquent property taxes or tax liens are sold at public auction, what rights are purchased by the buyer? Is there a possibility, at some point in time, that the tax lien buyers can attain legal title to the property for which they hold the tax lien? (This may be called a treasurer's deed.) If so, describe this process.