A county in Georgia is considering adding another factor to property tax collection and to the imposition of property tax liens: rain. In Rockdale County, the board of commissioners is awaiting further information on the proposed idea of adding stormwater collection fees to the list of things that can be placed as liens on properties if left unpaid[1]. Currently, the fees are very difficult to collect from property owners, many of whom “deride it as a ‘rain tax’” or simply move away without paying. Currently, the county has no recourse when this happens.
Stormwater fees are fees assessed property owners based on the amount of “impervious surface” on their properties. Basically, if water runs off it, then that surface is taxed, generally in Rockdale County for a sum around $40. The fees help support building, repairing and maintaining “stormwater infrastructure,” or storm drains, culverts and pipelines. Currently, the board of commissioners is concerned that making stormwater fees like city water bills in that they can be tacked on to property tax liens or simply placed as liens against a property by themselves and eventually, if left unpaid, sold at auction to a bidder who must try to collect the lien themselves, then has the option of foreclosure, could create a larger spending outlay than the situation warrants. Based on some calculations, it could cost $250 to collect the original $40 fee.
However, the county is not ruling the option out, but simply waiting for more information. As more municipal budgets suffer with falling property values leading to lower property taxes and property owners simply failing to pay, this type of additional lien on a home could become more popular as a way to enforce and increase collections. As a tax lien investor, do you support this type of addition or do you prefer to keep property tax liens simple?
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[1]http://www.rockdalecitizen.com/news/headlines/County_defers__on_tax_liens_for_stormwater_fees_114618394.html