Connection Between Appraisals, Listings, and Collection Liens on Real Property Responsible Taxpayer 5
What is a Lien? The right to satisfy a debt out of a particular piece of property Lien be created by: –Contract –Court order –Statute 6
When Do Property Tax Liens Attach? GS 105-355 Real Property: January 1 –No recording or filing required Personal Property: date of levy –No lien on PP until collector seizes it! 7
Liens on Real Property They include: –Taxes on RP itself –Taxes on personal property owned by same taxpayer in the same jurisdiction as Jan. 1 (GS 105-355(a)) They do NOT include: –Taxes on RMVs (GS 105-330.4(c)) –Taxes on other parcels of real property 8
Liens on Real Property Required for foreclosure Survive transfer Super-priority –Paid before mortgage liens 9
Taxes on which of the following property create a tax lien on Trump’s Dare County beach “cottage”? 16 1.His 2012 Corvette registered in Dare County. 2.The boat moored in Dare County. 3.His Village People albums kept at the “cottage”. 4.The Charlotte penthouse apartment. 5.All of the above.
Liens on Personal Property Attachment and Garnishment: –Any $$ owed to responsible taxpayer –Wages, bank accounts, rents Levy and Sale –Any tangible personal property owned by responsible taxpayer –Collector must seize and secure –Does not need to be the property that generated the delinquent taxes 17
Who is the Responsible Taxpayer? Taxes on Personal Property: (previous) Jan. 1 listing owner. Taxes on Real Property: record owner on date taxes became delinquent (Jan. 6) and all subsequent owners
Trump sells his beach house to Paris Hilton in December 2012. The 2012 property taxes become delinquent. May the tax collector… 19 1.Seize & sell Trump’s boat. 2.Levy & sell Paris’ Hummer. 3.Foreclose on the house. 4.2 & 3. 5.Any of the above.
Trump sells his boat to Coach K in December 2012. The 2012 property taxes on the boat become delinquent. May the tax collector… 20 1.Seize & sell Trump’s Corvette. 2.Seize and sell the boat. 3.Garnish Coach K’s wages. 4.2 & 3. 5.All of the above.
Listing and Collections May correct names of listing taxpayers at any time retroactively without time limit –GS 105-302(b) and 105-306(b) Discoveries are a tax for the fiscal year in that opens in the calendar year of the discovery is made –GS 105-312(i) 21
Listing and Collections: Scenario 1 Trumps fails to list his speed boat for taxes in 2012, 2013 and 2014. Trump sells his boat to Coach Roy in 2014. Boat discovered in late 2014. 22
Whose name should be on the discovery bill? 23 1.Trump. 2.Coach Roy. 3.Both.
If the discovery bill is not paid, who is responsible for those taxes? 24 1.Trump. 2.Coach Roy. 3.Both.
Listing and Collections: Scenario 2 Trump builds a 10,000 sq. ft. boat house on his Dare County property in 2012. He never lists the boat house for taxes. Trump sells house to John Edwards in 2014. Boat house discovered in 2015. 25
Whose name should be on the discovery bill? 26 1.Trump. 2.Edwards. 3.Both.
If the discovery bill is not paid, who is responsible for those taxes? 27 1.Trump. 2.Edwards. 3.Both.
Listing and Collections: Scenario 3 Trump has never listed his boat for taxes. In 2012 Trump sells his beach house to Dean Smith. Boat discovered in 2013. 28
Is the discovery bill for the boat a lien on the beach house? 29 1.Yes 2.No
Personal Property Discoveries Following Sale of Real Property GS 105-306(b) states that listing records can be changed retroactively GS 105-355 states that liens can arise retroactively when corrections are made But... GS 105-312 states that discoveries are considered part of the levy for the fiscal year that opens in the calendar year of discovery (not retroactive) 30