Property tax delinquencies down but still a concern

Property taxes are what fuel local government, and when people don’t pay them on time, Ozaukee County Treasurer Josh Morrison gets nervous.

Not so much about the effect on county coffers, but what it means for taxpayers.

With the deadline for paying 2018 property taxes being July 31, “if they wait until August, the interest and penalties go back to February,” Morrison said.

Morrison has a couple tips for taxpayers to avoid those penalties. 

First, get payments in the mail by July 31 since the law allows his office to honor the postmark on payments received by mail. Morrison suggests getting the check in the mail by July 25 just to be safe.

Secondly, he advises not using bill pay through a bank.

“That can take up to two weeks to clear,” he said. 

Payments can also be made in person by coming into the treasurer’s office in Port Washington or at any Port Washington State Bank branch.

Residents of the Town and Village of Grafton and the Village of Bayside must pay their property taxes at their local municipal offices.

For people who don’t pay their property tax bill, the consequences could be worse than paying interest and penalties, however.

They could lose their house.

Fortunately, the number of property owners facing foreclosure or behind on their property taxes has dropped in recent years, county records show.

The number of properties in delinquency at the beginning of the year was 157, tied with 2017 for the lowest in the last six years. In 2018, there were 170, 182 in 2016, 201 in 2015 and 283 in 2014.

It’s essentially a three-year process before the county forecloses on those properties so that this year, properties in delinquency for 2015 are facing foreclosure this coming June 24.

At the beginning of this year, 26 properties were facing foreclosure. That number has been reduced to eight, Morrison said recently.

“We started at 26 this year and being down to eight is pretty good. You go to other counties, they have hundreds. Ozaukee County is very fortunate in that regard.”

Morrison said he’s not sure why the number of delinquencies and foreclosures are down, but suggested it probably has something to do with the good economy.

Under Wisconsin law, property owners who are delinquent after one year have a two-year “redemption period” to pay off all taxes, penalties, interest, and other costs before the county can start the process to obtain title. 

Those fees and penalties can be $500 or more, Morrison said.

After the redemption period ends, there’s still time to avoid foreclosure, Morrison said.

“I will take the money from these people up until I walk through those doors at court,” he said. “If we can have them off (the delinquency list), I’d rather have them off.”

By law, the county is required to offer payment plans to help people catch up on their taxes.

“As long as you’re timely (with payments), you won’t be on the list,” Morrison said. “The idea is to get you caught up and keep you off the list.”

There currently are 11 properties on a payment plan, county records show.

“We do a ton of outreach and try to get them in and get them paid and help them through the situation and look for solutions,” he said.

Property owners don’t have to pay back all back taxes to avoid foreclosure, Morrison added. They just have to pay the year’s tax bill for which they are facing foreclosure, in the current case, for the year 2015.

“As long as 2015 is paid, they are out of foreclosure until the next year. even if they are behind on 2016, ‘17 or ‘18,” Morrison said.

Morrison said tax foreclosures often involve unimproved land parcels, perhaps used for hunting, and not a primary residence. “People just end up letting it go,” he said. “They’d be better off selling it.”

Last year, there were two tax foreclosures, both vacant land parcels, he said.

  If the county forecloses, the property belongs to the county, which then sells it at  fair market value through a sheriff’s auction after an appraisal.

A property that is auctioned is almost always purchased by the lien holder, usually a bank who holds the mortgage, Morrison said. 

“In the case where a property owner is also delinquent in their mortgage payment, statutorily, we’re no. 1 in line,” Morrison said. “I’ve never had a situation where there’s an existing mortgage and the bank doesn’t come through and pay the back taxes.”

For more information on paying property taxes, go to www.co.ozaukee.wi.us/144/Treasurer or call 284-8280.