PLYMOUTH — Marshall County commissioners set a few minimum bids as low as a buck for an upcoming tax certificate sale tentatively set for 10 a.m. May 20.
But buyer beware: Perennial properties are on the tax sale list, and the $1 properties are abandoned railroad rights of way that were supposed to revert to adjoining landowners.
However, the landowners never completed the process to take title, so the titles remain in the name of US Railvest or Plymouth Short Line, and the taxes go unpaid each year.
If the tax certificates to these properties are sold, the purchasers may have an issue trying to obtain title since they are not adjoining landowners.
“If they can’t attain the proper title, they’re only out a dollar,” auditor Penny Lukenbill explained.
Some of the properties were assigned to the city of Plymouth, town of Culver, the county, LaPaz Legion and the Department of Natural Resources.
Seven properties also were set at a minimum bid of $100, four of which are lots at Yogi Bear. Two properties were set at the minimum price of $2,000.
Closer to sale time, the properties will be listed on the auctioneer’s website at sri-taxsale.com/County/MARSHALL, where nearly 20 properties already are listed for the April 26 sheriff sale.
The sheriff sale is for foreclosed properties. Tax certificate sales relieve potential buyers from paying delinquent taxes, allow commissioners to acquire the lien without taking title and get the properties producing taxes again.
Lukenbill said her office also may be hiring SRI to take over a state-mandated homestead verification database for the 15,000 homes in the county.
With many second homes around lakes in the area, the verification is to make sure homeowners are not declaring more than one home as their primary residence.
“Not only do you get a $45,000 homestead deduction, but the assessed value is reduced 25 percent,” Lukenbill said. “That could make the tax rate more for others.”
After three months of trying to verify 15,000 homes, the auditor’s office has only managed to get to the “C’s” in the alphabet.
SRI has offered to either complete the homestead verification database for $3,600, or do the data input for free and take the process a step further by sending out letters if duplicate homestead deductions are found.
Violators could be charged back taxes for three years, plus delinquent penalties and a 10 percent civil penalty.
SRI would get 25 percent of any additional taxes taken in.
“If they don’t collect anything, they don’t charge,” Lukenbill said.
Lukenbill mentioned a mercy period for those who come forward and respond to the letter.
“It is confusing and a lot may be inadvertent; however, some would probably do it on purpose to save a buck,” she said. “We just want to make sure everyone is being kept honest.”
The database deadline is 2013. Commissioners took the recommendation under advisement pending a legal review by the county attorney.
Staff writer Virginia Ransbottom: vransbottom@sbtinfo.com 574-235-6344