Delinquent property tax enforcement can help municipalities interrupt the cycle of decline and ensure problem properties end up in responsible hands to become neighborhood assets. However, most delinquent property tax enforcement and tax foreclosure systems are inequitable, ineffective, inefficient, and in need of reform.
Tax delinquency is the single greatest indicator of property distress. Tax delinquency can signal a failure to uphold other obligations of property ownership, including mortgage payment and property maintenance, and ultimately lead to property abandonment.
Property taxes are typically the largest source of revenue for local governments. Delinquent taxes, therefore, result in the detriment of other services. It is crucial for local governments to use an equitable, efficient, and effective delinquent property tax enforcement process to transfer problem properties and fund services that support healthy, safe, and vibrant communities.
Property tax enforcement processes are complex and vary both by and within states. The way these processes are defined by law and how they are enacted locally plays a large role in a community’s ability to fund public services, stabilize and strengthen neighborhoods, protect vulnerable property owners, and minimize the harm vacant, abandoned, and deteriorated properties pose to residents.
Delinquent Property Tax Enforcement Resources
What Tyler v. Hennepin County Means for the Future of Property Tax Foreclosure
On May 25, 2023, the United States Supreme Court released its opinion in Tyler v. Hennepin County, making a rare but significant incursion into the realm of property tax law and, more specifically, the state and local government practice of property tax foreclosure.
Learn what the SCOTUS decision means for property tax law in your community and how you can seize this moment to make property tax systems more equitable, efficient, and effective for everyone.