Unpaid property tax bills left America’s cities and counties with a financial shortfall of more than $15.7 billion
JUPITER, FL, USA, June 30, 2020 /EINPresswire.com/ — The National Tax Lien Association (NTLA), the #1 educator and non-profit tax sale trade association, recently released research that shows how many property owners failed to pay their taxes on time; additionally, how much each US state is owed from the non-payment of property taxes. The report release in June 2020 does not take into account a predicted 30% increase in delinquent taxpayers as a result of the COVID-19 pandemic.
The data, aggregated by Brad Westover, NTLA Executive Director and Founder of the NTLA Foundation, demonstrates the ill effects of what a $15 billion budget deficit creates on local governments if no mechanism existed to collect these delinquent taxes. With $15 billion dollars, America could build 333 new high schools or pay 300,000 more high school teachers’ salaries!
Currently, 30 US states sell tax certificates to the private sector, in 2019 alone, over $4.3 billion of lost revenue was recouped to fill local government budgets. These funds go directly to fund public schools, emergency services, etc. More cash-strapped states and local governments will turn to tax sales to avoid defaulting on their obligations or cutting school funding.
“The NTLA has a responsibility to report on the ramifications and imminent repercussions that will occur in 2020-2021 as a result of the current social and economic issues the United States faces from COVID-19,” said Westover. “This report will establish the ‘pre-COVID’ baseline by which the economic hardship of the Coronavirus will be measured against for years to come. Next year will likely reach a historic high in America of $20.5 billion in unpaid property taxes.”
“The good news for the 30 states that do sell delinquent taxes is that they have an effective tool to recoup lost revenue without raising taxes,” continued Westover. “Nobody wants higher taxes with this new economy—and the icing on the cake is delinquent taxpayers generally have 2-3 years to pay which over 99% of them eventually do without facing losing their properties.”
“If there ever was a win-win solution with the private sector and public sector working together, this is it!” remarked Ted Doman, NTLA President. “Governments have funds to operate and investors lend money for a time for delinquent taxpayers to recover.”
To read the full report, click NTLA 2020 MARKET RESEARCH REPORT.
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About the NTLA
The National Tax Lien Association (NTLA) was founded in 1997 as the not-for-profit trade association for the tax sale industry. It is dedicated to representing the interest of investors, lenders, service providers, and government officials regarding tax sales, as well as promoting the benefit of those sales as reliable income for municipal, county, and state budgets. The NTLA provides networking and training opportunities for professionals and novices in the tax sale industry. For more information, visit the NTLA site at www.NTLA.org.
About the NTLA Foundation
The NTLA Foundation was established to provide economic relief to individuals and families—namely the elderly, disabled veterans, and others—who are in hardship in danger of losing their properties to tax foreclosure. For more information, visit the NTLA Foundation site at www.ntlafoundation.org. You can help. Donate today.
Source: EIN Presswire