Tax revolt

[Sapiens]

Tax revolt

Ok, the headline is about 18 months too early, but give it a little bit and we shall start seeing some serious headlines...

If it was up to the banksters and politicos, you would not keep a single cent of your wealth. Let's see how the local government politicos react at the drying up of cash on Main Street.

[Sapiens]

Re: Tax revolt

These are just some of the headlines coming out:

Tax revolt already is top story of 2009

Tax revolt, anybody?

Property tax revolt grows

[bill]

Re: Tax revolt

These are just some of the headlines coming out:

Tax revolt already is top story of 2009

Tax revolt, anybody?

Property tax revolt grows

New business opportunity
“Tax Lien Certificates”

[Slimprofits]

Re: Tax revolt

The Wall Street Journal, which yesterday published an overview of cap efforts, noted the protests of property owners in Hampton, upset over tax hikes that for one homeowner hit 30 percent year-over-year. About 100 town residents are advocating for a reassessment of property values there, the Journal said.

In its story, the Journal recounted protests and tax cap proposals from Arizona to Indiana to New York state. But even that wasn't an exhaustive list.

In December, angry property owners rallied outside city hall in Hoboken, N.J., according to local news blog Hoboken Now. Also that month, The Sun News of Myrtle Beach, S.C., reported on a tax revolt brewing in nearby Brunswick County, N.C.

And in Oklahoma City, the Associated Press reported on the efforts of a state lawmaker trying to lower the amount annual property taxes could be hiked, warning of a "taxpayer revolt" if state law wasn't changed.

unionleader.com

[bill]

Re: Tax revolt

New business opportunity
“Tax Lien Certificates”

Bankers leave nothing for us little guys.
http://www.consumerwarningnetwork.co...cked/#more-695

Foreclosure Crisis Having Impact on Delinquent Taxes
May 29, 2009
This is a bad time of year for delinquent property taxpayers.
Local tax collectors are about to begin a yearly ritual that puts homeowners who don’t pay their taxes on the hook for *interest on what they owe, sometimes as much as 18-percent interest. It’s the annual tax certificate sale, and it brings in big profits for investors.
With foreclosures way up, so is the amount owed in delinquent taxes. In Hillsborough County, Florida, which is the Tampa area, $161-million in delinquent property taxes is owed for 2008.

The list for all the properties in Hillsborough County that owe delinquent taxes is bigger than two Sunday newspapers combined. There are some 46,000 delinquent properties for 2008. That’s a 40% increase over just two years ago.
The Tax Collectors Office says the increase in foreclosures is having an impact on people paying their taxes. “They’re not paying them as soon as they used to. They’re paying them a little later and some are going unpaid. And as a result we have more delinquent taxes this year than we’ve had before,” said Charlotte Luke Director of Data Processing.
Investors Cashing-In on Homeowners

Tax Collectors sell these tax certificates to recover the delinquent property tax money owed by homeowners, which is used to run the local government. Investors buy the certificates, which are essentially liens on the delinquent property. History shows they have a high likelihood of a good return.
An investor buys a certificate on a certain property, pays the taxes and in exchange earns interest on the delinquent amount the homeowner owes. That interest rate can be as high as 18% and is generally bid down by investors in an auction. It can go as low as 3%, but last year, averaged about 10%. That’s a pretty hefty profit in these tough economic times.
In addition, part of what makes these certificates so attractive is that investors are guaranteed at least 5% in Florida, if the homeowner pays up in the first 3 months. So even if you bid your profit down to 3%, you can still make 5%. That’s 2% in free money, guaranteed by Florida law.
It’s pretty much guaranteed money. When the homeowner finally pays the taxes, which most do, they get stuck paying the interest on top of the taxes they owe. The price of being late.
If the property goes to foreclosure, investors still have a pretty high likelihood of being paid. These tax certificate liens are first in line to be paid, even before the mortgage. So, whoever holds the mortgage likely steps up and pays the taxes, plus interest.
Look who’s Cashing In

Those big returns make them attractive investments, and you might be surprised at just who is cashing in.
Luke, with the Hillsborough Tax Collectors Office, says big banks like Bank of America and J.P. Morgan Chase are among the biggest buyers. She says lending institutions often purchase the certificates in droves through middle-man companies, like Gulf Coast Holdings.
“Good interest rate. Return on their money.” Luke says that’s why these big banks are major players here. “They got in the game when the interest rates were going down. You invest in a property. It’s a quick return on the money.”
She says that guaranteed 5% return is also a major factor for the high level of interest from big institutions. “You just made 5% on the money you gave us for that certificate. Whether they (property owners) pay it next month or you only held it for a month or a few months, you’re guaranteed 5%.”

Conflict of Interest

In other words, these banks are making a lot of money off of delinquent taxpayers, who also in many cases these days are struggling homeowners facing foreclosure. And there lies the potential conflict.
Some homeowners say it’s not fair for big banks to cash in on homeowners facing foreclosure, especially since many borrowers have found it very difficult to get their lenders to do loan modifications to help them avoid foreclosure.

http://www.youtube.com/watch?v=5Gjw5...layer_embedded

[cjppjc]

Re: Tax revolt

Look who’s Cashing In

Those big returns make them attractive investments, and you might be surprised at just who is cashing in.
Luke, with the Hillsborough Tax Collectors Office, says big banks like Bank of America and J.P. Morgan Chase are among the biggest buyers. She says lending institutions often purchase the certificates in droves through middle-man companies, like Gulf Coast Holdings.
“Good interest rate. Return on their money.” Luke says that’s why these big banks are major players here. “They got in the game when the interest rates were going down. You invest in a property. It’s a quick return on the money.”
She says that guaranteed 5% return is also a major factor for the high level of interest from big institutions. “You just made 5% on the money you gave us for that certificate. Whether they (property owners) pay it next month or you only held it for a month or a few months, you’re guaranteed 5%.”

Conflict of Interest

In other words, these banks are making a lot of money off of delinquent taxpayers, who also in many cases these days are struggling homeowners facing foreclosure. And there lies the potential conflict.
Some homeowners say it’s not fair for big banks to cash in on homeowners facing foreclosure, especially since many borrowers have found it very difficult to get their lenders to do loan modifications to help them avoid foreclosure.


You could not have made this up, if you were given decades to do it. The surrealistic qualities of the last 20 years are Kafkaesque, and so tragic.

[tastymannatees]

Re: Tax revolt

I read that there were 4000 tax revolt organizations formed in the 1930's and they where quite successful at getting taxes cut. Most municipalities bridged the gap by taxing things like liquor. I am not sure we have as much room to increase taxes on anything today.

Family's are already at the margin - What was that statistic the other day? something like the average household has a two week cushion of cash? one trip to the hospital, one major car repair, food, heating oil doubles and they are wiped out.

You are eating beans and the local fireman or UAW worker has a $100K pension? It's going to be interesting that's for sure.

[ax]

Re: Tax revolt

Tax revolt

Ok, the headline is about 18 months too early, but give it a little bit and we shall start seeing some serious headlines...

If it was up to the banksters and politicos, you would not keep a single cent of your wealth. Let's see how the local government politicos react at the drying up of cash on Main Street.

Taxless revolt.....

"The carnage in state budgets is getting worse, a report said Thursday, with places like Arizona being hurt by falling revenue on multiple fronts, like personal income and sales taxes. Other states are having mixed experiences, with some tax categories stable, or even rising, even as others fall off the map...."

http://www.nytimes.com/2009/06/05/us...1&ref=business