PRESS RELEASE FOR IMMEDIATE RELEASE May 10, 2001 Delinquent Property Taxpayers Get Final Warning Before Tax Sale WASHINGTON, DC - The District of Columbia Office of Tax and Revenue (OTR) this week is mailing 11,866 final notices of property tax delinquency, in an effort to collect outstanding taxes before the properties are sold at the annual tax sale. This year, included with the notice for the first time, OTR is listing real property tax delinquencies from tax year 2000 and as far back as 1993. The bill also includes liens reported from other District agencies. Under District law, old liens must be satisfied before payment is accepted for the latest real property tax. In some cases, tax balances will be very large due to the period of delinquency. Property owners have until the July 16 tax sale to pay their taxes in full, including penalties and interest, to prevent their property from being sold. However, tax officials advise owners to pay their liabilities by June 14 to avoid having their properties advertised in the newspaper as going to auction. "The real purpose of the delinquency notice is to encourage property owners to pay their real property taxes, avoid the embarrassment of tax sale advertisement, and maintain possession of their homes and businesses," said Herbert J. Huff, Deputy Chief Financial Officer for Tax and Revenue. "We are making every effort to ensure that taxpayers are informed of all their liabilities and that they have ample opportunity to become current." Huff added that last year's final notice of delinquency was an extremely effective collection tool. "We collected $14.4 million in delinquent tax revenue as a result of the notices," he said. Last year's tax sale generated another $10.2 million for the District, representing 3,656 properties. For properties ultimately sold at tax sale, the newly enacted Tax Clarity Act extends the redemption period, allowing an owner to pay back taxes up to the time a tax deed is issued. Purchasers must wait six months after the tax sale to file a foreclosure action in DC Superior Court. If the original owner redeems a property, the tax sale buyer will be reimbursed their purchase amount plus legal and title search costs, and an 18 percent annual interest rate paid on the tax amount. Those interested in acquiring a property at tax sale should understand and follow all procedures, OTR officials advised. "A purchaser should do the research to see what other District liens are owed on the property," said Tax Sale Manager Connice Hogue. Buyers must make sure they can afford to assume all liabilities, such as old water and sewer charges and nuisance fees. "They also should make sure they know what they are buying," Hogue said, noting cases where buyers were stunned to discover that they had purchased only a vacant lot, not a house. OTR will hold two seminars in early July to educate owners and purchasers on the tax sale process. Pre-registration is required. Those interested should call Customer Service at (202) 727-4TAX (4829), or visit the walk-in center at 941 North Capitol Street, NE.