Outside firm will help recoup overdue taxes

CELINA - Mercer County Treasurer David Wolters is turning to a nationwide lien purchaser to recoup delinquent real estate taxes.

This is the first time the treasurer's office, which going into 2018 had a carry-forward or accumulated delinquent tax balance of $800,000, will conduct a real estate tax lien sale to recover money owed to the county, Wolters told the newspaper on Tuesday afternoon.

Not all property owners with delinquent taxes will be targeted, just those on a case-by-case basis who have shown "very little effort to the pay the county," Wolters said.

"With regards to delinquencies, we look at various options in working with taxpayers to attain payment of delinquent property taxes," Wolters said. "Should there be an acceptable solution and the taxpayer qualifies, we may offer short-term contracts with payment plans. On many occasions, this financing strategy works, and the outcomes are positive for both the county and the taxpayer."

Since coming into office, he has seen a need to address the carry-forward balance, Wolters said. Working with Tax Ease, a Texas-based real estate tax liens purchaser, is a last resort short of foreclosure to capture delinquent taxes, two-thirds of which would go to school districts.

"Although Mercer County historically has seen comparatively low annual aggregate delinquency percentages, we continue to see carry-forward delinquency balances," Wolters said in a news release. "These balances may be initially small, but many times when there is a period of payment inactivity or payment reduction, the balances grow and become significant. As a result, monies allocated for funding schools, townships, fire districts are hindered and delayed contingent upon the time period and expenses required by legal notices, court filings, etc."

Wolters plans to conduct real estate lien sales annually, beginning in November. He said liens on as many of 50 parcels of land will be sold to Tax Ease. His office oversees about 29,500 parcels totaling $46 million in real estate and mobile home taxes.

His office will mail sale pre-notices in October, giving affected property owners a month to pay their delinquent taxes before they are sold to Tax Ease.

"In a tax-lien sale, a third party purchases the amount of delinquent taxes, interest and fees owed to the county," Wolters wrote. "Upon the completion of the sale, the county is paid for the taxes owed, and the taxpayer enters into a monthly collection arrangement with the third party. The taxpayer then makes payments to the third party and not to the Mercer County Treasurer."

Tax Ease, Wolters said, earns its cut by assessing interest on the payments owed by the taxpayer.

Wolters said Tax Ease came recommended as an excellent tool to recover carry-forward balances by treasurers in other counties.

"Tax Ease currently has contractual relationships with 36 Treasurers' offices within the State of Ohio for the purpose of purchasing real estate tax liens," Wolters wrote. "Tax Ease will partner with us in managing these collections."