County reaps tax windfall

The Daily Inter Lake

Past-due property taxes paid after New Jersey firm announced intent to buy liens

More than $3 million in past-due property taxes have been paid up or purchased in Flathead County in the last few weeks.

The surge in tax payments was prompted by Mooring Tax Asset Group, a New Jersey firm that purchases tax liens across the nation.

Two weeks ago, the company sent letters to 1,575 delinquent taxpayers here, saying it intended to purchase their tax lien from the county unless they paid their tax bills within two weeks.

Mooring representative Lambros Xethalis said the company's interest in this area was prompted by the unusually high number of delinquencies.

"I don't think any other county we looked at [in Montana] had more than 900 past-due owners," he said. "When you don't have companies with our wherewithal coming in, property owners often ignore their tax obligations. This is a way of forcing the tax rolls to become more current."

Flathead County Treasurer Adele Krantz said the county didn't hire or invite Mooring to come in and clean up its tax rolls.

Nevertheless, she said, $1.82 million in past-due taxes have been paid off since Aug. 21, when Mooring sent out its letter.

During the same period last year, the county collected $436,000 in past-due property taxes.

Mooring also chose to purchase 490 tax liens that weren't paid up within the two week deadline. That will net the county another $1.21 million.

Property owners can still redeem their tax liens even if they're acquired by Mooring. It won't cost any more than it would if the liens were still held by the county, either. They just have to pay the applicable taxes, penalties and interest.

That money would go to Mooring, reimbursing the company for its initial costs and allowing it to earn interest on its investment.

In cases where the taxes are at least three years past due, Mooring could apply for a tax deed and take the property.