San Nicolas Proposes Reducing Statue of Limitations on Property Taxes Owed From 30 Years to 10 Years
- Written by Kevin Kerrigan
The current law authorizing collection of un-paid property taxes for up to 30 years was passed in 1951, according to a release from Senator San Nicolas.
He points out that the statute of limitations for all taxes under the IRS Code is just ten years and Bill 101 would bring "uniformity" to the "pursuit and collection of all taxes."
The release quotes Senator San Nicolas as saying “We should not hold property owners to a different standard of record keeping than other taxpayers. It is about applying a time frame that is fair and reasonable for everyone.”
Following an oversight hearing on Rev & Tax in January, San Niolcas called on Governor Calvo to beef up staffing at Rev & Tax in order to collect what he said was more than $100-million owed, $91 million of which is more than 1 year past due, and some of it, has been owed for more than 10 years.
During the course of that oversight hearing, Deputy Rev & Tax Director Marie Benito acknowledged that Rev & Tax has not launched an investigation, nor seized any property in more than 20 years, despite the more than $100 million dollars in back taxes owed to GovGuam.
READ the release from Senator San Nicolas below:
FOR IMMEDIATE RELEASE
May 2, 2013
Senator Michael F.Q. San Nicolas today introduced Bill 101-32 (LS), or the Responsible Real Property Tax Statute of Limitations Act, which would reduce the statute of limitations on property taxes due to the government. Current law allows the Department of Revenue and Taxation to pursue and collect owed property taxes for up to 30 years; the legislation would reduce that time frame to ten years.
The statute of limitations on the collection of real property taxes became law in 1951 and has not been changed since. By comparison, other taxes possess statutes of limitation which are far less than those for real property; all taxes administered under the Internal Revenue Code have a statute of limitations of ten years.
“There needs to be uniformity with regards to the pursuit and collection of all taxes that are owed to the people’s government,” said Senator San Nicolas. “We should not hold property owners to a different standard of record keeping than other taxpayers. It is about applying a time frame that is fair and reasonable for everyone.”