By Marissa Maier
The North Haven Village Board is getting ready to hold their annual tax sale, when potential investors are allowed to bid on delinquent taxes on properties in the village. Georgia Welch, the village clerk, noted at Tuesday’s board of trustees meeting that two parcels fit this bill. One tax bill is for around $530, while the other is roughly $650, pointed out Welch.
“It is an annual thing that every municipality that collects taxes does. Any time there are lien taxes that run almost a whole year late by law a municipality can sell the taxes that are due to anyone who wants to buy them,” explained village mayor Laura Nolan.
The tax sale business can be extremely profitable as the investor who pays the taxes then owns an interest in the property. The investor also must be paid back their initial investment plus one percent interest for every month the debt goes unpaid.
“It is a type of investment,” noted Nolan. However, those in the tax sale business often buy bundles of delinquent taxes in larger areas and earn thousands, whereas in North Haven one would make only a few dollars, remarked Welch.
“It isn’t worth the effort,” said Welch. “In other townships, people will buy them all up and make a nice tight profit.”
Trustee Jeff Sander wondered how the village would sell the delinquent taxes. Welch answered they would be sold on a first come first served basis, but added the delinquent taxes have never been sold. Apparently, a man in the tax sale business visited the village last year to check out the delinquent properties but quickly lost interest when he saw how marginal the tax bills were. Notice of the tax sale must be published three times, with the last date being March 11.Welch noted that the actual tax sale will be held on Tuesday, March 16.