Can I Get a Payment Plan to Pay My Delinquent Property Taxes?

1926 Promissory Note from the Imperial Bank of India, Rangoon, Burma for 20,000 Rupees plus interest

Most of what we discuss on this blog is the hows and whys of appealing a property tax assessment. Occasionally, however, once the amount of the property tax assessment has been agreed upon, the taxpayer cannot immediately pay the full amount owing. Thus the question becomes whether a payment plan can be negotiated with the respective taxing jurisdiction.

Chris McLaughlin recently posted an article on this subject at the Coates' Canons, a University of North Carolina at Chapel Hill School of Government blog. Chris blogs frequently on issues specifically involving property taxes. I highly recommend Chris' blogs as a source of accurate information on the property tax system in North Carolina.

A couple of take-aways from Chris' most recent post on payment plans:

  1. Although payment plans are not specifically authorized by the Machinery Act, Chris thinks they are allowed.
  2. Chris recommends that any county wishing to have a payment plan should have a written policy setting forth the parameters of its allowable payment plans, such that all taxpayers are treated uniformly. So, a taxpayer wanting a payment plan should ask for the county's policy.
  3. Chris recommends that certain financial information be gathered as part of the payment plan process, in order that the county will have that information available for use for enforced collection in the event that the payment plan is defaulted. So, a taxpayer can expect to have to provide some detailed financial information to the county as the price for getting a payment plan.
  4. Interest must continue to accrue while the payment plan is in place.
  5. The statute of limitations on enforced collection of delinquent property taxes is 10 years from the date of deliquency, which is usually January 6 of the year following the due date of the tax bill. I'm not sure I knew that one, so you learn something new every day!

As always, please write us if you have any questions.

Image is a 1926 promissory note from the Imperial Bank of India, Rangoon, Burma for 20,000 Rupees plus interest. By Imperial Bank of India - Scan of original, Public Domain.

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John A. Cocklereece, Jr.

John Cocklereece concentrates his practice on property tax appeals, business law, tax controversies, and estate planning and administration.
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