Nov 18, 2007 12:18 pm US/Eastern
More Homeowners Skipping Out On Property Taxes
SOUTH FLORIDA (CBS4) ―
South Florida's skyrocketing property taxes have more and more homeowners throwing in the towel because they just can't afford to pay them anymore.
CBS4's news partners at the
Miami Herald report both Miami Dade and Broward counties had a record number of homeowners defaulted on the tax bills. The total unpaid amount came to near $365 million.
In Miami-Dade County, 1 out of every 16 residential homeowners did not pay their 2006 property-tax bills. That's a 41 percent increase from the year before. In Broward, 1 out of every 21 residential homeowners didn't pay: that's up nearly 54 percent from the previous year. A data analysis found in both counties, investors, second home owners, and those with no homestead exemption made up 65 percent of the unpaid accounts.
As the 2007 tax bills begin to arrive in the mail, many are expecting the number of unpaid accounts to go even higher. As for the counties' coffers, the unpaid tax revenue is not affecting their bottom line. The revenue shortfall, or debt, is sold off each year to investors who pay the delinquent amount in exchange for an interest-bearing lien called a tax certificate.
Homeowners who fail to pay their taxes for two consecutive years are at risk of losing the property unless their lender pays the back taxes for them to prevent the sale. Most lenders, however, will not make tax payments on loans in foreclosure.
(© 2007 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
CBS4 news partner The Miami Herald contributed material for this report)
