What happens if you do not pay your property tax?

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  • #193600
    2bncr
    Member

    To the best of my research the government does not foreclose on property if the property taxes are delinquent. Can anybody verify this??? I think its important information that we all should be aware of. Maybe one of the attorneys frequently mentioned on this site could clear this up. Thanks alot. I am delinquent now for several years. I am sure there are many other owners who do not live here that are also delinquent.

    My heart-felt condolences Scott, regarding your mother’s illness.

    Edited on Nov 20, 2008 10:54

    #193601
    sprite
    Member

    I wouldalso like to know. I have had an attorney pay mine for me the last time in January. I may come down and do it myself this time.

    #193602
    maravilla
    Member

    Why would you NOT pay your property taxes?? I think you can do it online in the canton where your property is located. Do you have a bank account at BN or BCR? Surely they have it set up (BN does) for you to access the Municipalidad services. You want to mess with a squirrely government such as Costa Rica? I don’t. I trot myself down there every January and go to Muni the next day. I’ve even paid taxes for friends of mine who couldn’t get there to do it in person. I’m going down on January 24, so if there is anyone in San Ramon and its environs who needs help getting those taxes paid, I’d be glad to help you. But everything is being re-assessed so what you paid last year won’t be what you pay this year. I can’t get that declaration filed before December 19 when it’s due so I will probably have to pay a small fine when I do go to Muni in January.

    #193603
    Andrew
    Keymaster

    Our Costa Rica Tax Expert Randall Zamora tells me that:

    1. For property taxes on new construction: “When you were given the construction permits you had to report the value of the construction, therefore the local municipality will use that valuation as a basis for the new taxes.”

    2. How are property taxes updated & enforced? “There are mandatory reassessments that must be filed every 5 years when it comes to property taxes and every 3 years when it comes to luxury house property taxes.”

    3. Foreclosures: “Starting on 20th May 2008 there was a new foreclosure (cobro judicial) law that allows the Municipalities to start the foreclosure process after only one period of deliquency.”

    I would strongly encourage you to pay all proeprty taxes that are due.

    Scott Oliver – Founder
    WeLoveCostaRica.com

    #193604
    Imxploring
    Participant

    The other question is how will they be calculating the new taxes? Seems the Tico Times has an article today (http://www.ticotimes.net/topstory.htm) which indicates that the taxes on a $200,000 house would be $1000/yr under the proposed changes.

    Yet there is an article on this site by Randall Zamora that would seem to indicate the tax would be $45.45/yr ($200,000- 181,818 = 18,182*.25%= $45.45). That’s using the method in his example.

    That’s quite a difference… perhaps we might want to clear that up. Somehow I don’t think Oscar is going to clean up the slums by hitting “rich” Gringos for 45 bucks a year!

    I’m not sure if Randall reads the forums… this would be a really good point to clear up.

    As for paying your taxes… I’d have to agree… why chance it! I go down to the Muni in January… hand them last years receipt… they punch up the accounts…. and I pay them… quick and easy.

    Edited on Nov 21, 2008 20:05

    #193605
    Imxploring
    Participant

    Whoops… a package of cookies for the ladies in the Muni office always works wonders as well… last year they even called out the supervisor to say hello and say thank you. It’s always nice doing business and taking care of the normally very frustrating things when everyone is smiling!

    Edited on Nov 20, 2008 14:54

    #193606
    Imxploring
    Participant

    So does anyone have an idea how the new tax will be calculated? The difference in the two examples above makes you wonder! If the plan is to calculate the new tax from dollar one… it’s going to get expensive real quick! And if the new tax above and beyond the current tax rate we already pay… it gets even more interesting. Perhaps Randall can clear this up?

    Scott… my thoughts and prayers are with you… for no matter how old our loved ones get…. and how we know that we must let them go at some point… the time is never right… and the task never an easy one.

    #193607
    2bncr
    Member

    “Starting on 20th May 2008 there was a new foreclosure (cobro judicial) law that allows the Municipalities to start the foreclosure process after only one period of deliquency.”

    I am told that the above is the “process to get a judgment” for back taxes. A process to obtain the judgment only. Not a process to sell the owners property. I continue to be told that there is no such thing as a government tax sale – by any branch of the government.

    Nobody seems to be able to site a code or law that allows property to be sold (not merely liened). I think what Mr. Zamora was speaking of was the lien process, not the means by which to satisfy the lien.

    Does anybody know of anyone or even heard of anyone buying property from a government tax sale.

    I would like to think that Costa Rica is not financially inhumane, and does not steal property because of tax obligations, like the money hungry US does.

    Anyways I am still looking on the internet for a tax sale and calling realtors to ask if they have heard of one. There are a lot of realtors that contribute to this site, have any of you heard of a tax sale???

    BTW this is not an argument about whether or not to pay taxes. It is simply a matter of policy that should be public knowledge and available to all.

    #193608
    Andrew
    Keymaster

    This from Randall Zamora [ https://www.welovecostarica.com/members/department63.cfm ]:

    @@@@@@@@@@@@@@@@@@@@

    “Sorry, I was double checking my emails and found this one on my junk mail. The difference between TT’s figures and ours is that they are not considering that this tax is a progressive one, which means there is an exception value and there is where the tax applies, so:

    A US$200K house

    200000-181818=18182*0.0025 = US$45.45

    A US$400K house:

    400000-181818=218182*0.0025 = US545.45

    @@@@@@@@@@@@@@@@@@@@

    Scott Oliver – Founder
    WeLoveCostaRica.com

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