A few questions about delinquent taxes

The Rutherford Neighborhood Alliance is kicking up dust again. This time about delinquent taxes in Rutherford County.

Specifically, the group wants to know why the county's Delinquent Tax Attorney hasn't presented a list of people who owe taxes to the County Commission since God knows when.

By RNA's research, more than $500,000 is owed to the county in back real and personal property taxes. The group estimates that, when compounded with fines and interest, the figure comes to around $1 million annually.

That's a lot of money and no one know exactly how much is owed or who owes it because the Delinquent Tax Attorney hasn't present the report that is required by state law.

How delinquent taxes work

If a property owner fails to pay taxes on his or her property, it can be auctioned after two years by the county to recoup the cost of the back taxes. Also state law allows for the county to forgive the debt owed after 10 years. Read more here

So unpaid property taxes from 2005 are late in 2006 and then delinquent in 2007. The land can then be auctioned to recoup the taxes. If the land isn't auctioned, the taxes can be declared uncollectable in 2017 and written off the county's books.

In 2017, 16 properties were auctioned and 30 property owners had their taxes forgiven totalling more than $6,500 in back taxes from 2005. (A total of more than $24,000 in back taxes was forgiven when personal property taxes were included.)

These were dismissed by Chancellor Howard Wilson at the request of the Delinquent Tax Attorney.

With fines and interest, the county lost out on around $10,000 from 2005 form real estate taxes. If that figure is written off year over year, it has an impact on the county's budget.

"Not collecting taxes legally due is bad for our finances. Not abiding by Tennessee law is bad for our character," RNA member Mike Linton said at the County Commission meeting Thursday, June 14.

Who owes these taxes?

In an email to the County Commission from April, RNA postulates that many of the tax shirkers date back to 2009 when disgraced Property Assessor Bill Boner took about 270 properties off the Greenbelt.

In Rutherford County, the law reduces the tax burden of Greenbelt properties by 33 percent on average. By reclassifying some property, certain owners ended up owing a total of more than $780,000 annually.

Some property owners weren't happy about their increased tax burden and refused to pay up.

RNA believes some of them are refusing to pay until the taxes can be forgiven.

"It is our understanding that some of the people who were removed (from the Greenbelt) paid those taxes, some defaulted and lost their land at auction and some started paying current taxes when their Farm Belt status was restored but did not pay for the years that were in arrears," RNA member Susan Allen said in an April email to the County Commission.

Why did the county auction some land but not others?

In 2017, 30 property owners had their 2005 back taxes dismissed.

A few of the dismissed taxes were owed by Home Owners Associations (which begs the question where are your dues going?), a few are businesses, but the majority (22 of the 30) are private land owners. Most owed less than $100 but a few owed into the thousands.

The same year, the county confiscated 16 properties and auctioned them off to pay for the back taxes. Most owed more than $2,000, but some owed a comparable amounts to those who had taxes forgiven.

Who is the Delinquent Tax Attorney?

A search of the county's website has no mention of who the Delinquent Tax Attorney actually is.

On a public notice that ran May 31 in The DNJ lists Roger W. Hudson from Hudson, Reed and McCreary as the Delinquent Tax Attorney.

According to a public notice printed Oct. 5, 2017, suspended attorney Jim Cope was the Delinquent Tax Attorney. Cope was suspended from practicing law and resigned his post as County Attorney in 2016 after pleading guilty to insider trading. But he was still listed as the Delinquent Tax attorney in 2017.

Why doesn't the Delinquent Tax Attorney present an annual report?

According to state law, "annually, at the July meeting of the county legislative body, the trustee shall present a report to the county legislative body of all delinquent taxpayers and double assessments in the county. This report shall be verified by affidavit of the trustee and filed with the county clerk. The report shall be spread upon the minutes of the county legislative body and municipality, respectively."

RNA has searched through county records and couldn't find any reports.

"This is odd, since according to the law such a report, verified by affidavit, should be easily referenced in the minutes of the County Commission," Linton said in a comment to the County Commission in March.

"After further inquiries, the county trustee admitted that no such list had been presented to the county commission and filed with the county clerk, but such a list was maintained in the trustee's office," Linton said.

RNA has send a letter to Rutherford County District Attorney Jennings Jones asking for his office to investigate the issue.

Now we wait for answers.

Michelle Willard is a freelance journalist who fills her days with social media marketing, politics, true crime, and taking complaints. You can complain to her on Twitter @MichWillard or by email michelle(at)murfreesborovoice.com.