Property at 403 E Broadway Street in Paullina was purchased by the City of Paullina at Tax Sale. It is scheduled to go up for tax sale again in June. If that were allowed to happen the City risks losing the property and its investment in the property. The City had a couple of choices to consider to protect their investment.
Currently, the property sitting at the northeast corner of East Broadway and North Maple Street has property tax, Special Assessments, and nuisances. For property taxes, the city can request that the county abate, or forgive those taxes. The city can pay the special assessments and nuisance taxes or it can cancel those special taxes. These dollars are owed to the city so if the city pays those taxes the money, except a $5.00 fee to the county for collection, comes back to the city. City Attorney Tisha Halverson noted the questions for council to consider before casting its vote for a resolution. She pointed out that when deciding how to proceed, council should determine its purpose for owning the property. If council chooses to pay the special assessments on the property, the city could potentially choose to include recovering those fees in a sales price and pass them on to a buyer. At the same time, those special assessments may deter a potential buyer away from the property. Paying those taxes would keep the special assessments in place. If council plans to use the property for a public purpose they may want to consider canceling the special taxes. It’s the city’s money for street improvements and for nuisance abatement.
The two kinds of taxes, property and special are two separate issues.
The property taxes due is $796.00. Halverson saw no reason not to abate those taxes. She further explained that the more than $16,000 currently due in special taxes could be considered a bit longer by council before making a decision. Special taxes will be delinquent on April 1, 2023 and eligible for tax sale at that time.
Council passed a resolution to request an abatement on the property taxes, approximately $796.00.
No action was taken on the special taxes due.