By: Diane Benjamin
McLean County Board member Dave Selzer has a problem paying his property taxes. See this previous story: http://blnnews.com/2016/02/15/dave-selzer-tax-deadbeat/
More information has surfaced.
First, there is a thriving business buying taxes for people who can’t afford to pay them:
http://www.professorprofits.com/states/county.php?state=IL&county=McLean
Unpaid property taxes create a serious cash-flow problem for McLean County, Illinois.
To solve this problem McLean County, Illinois allows investors to pay off these taxes. In exchange the investor receives the McLean County, Illinois lien for taxes. A real estate tax lien is simply a claim for delinquent taxes.
Why would investors do this?
Well, depending on Illinois laws and competition, savvy McLean county tax sale investors can realize high-yielding returns with tax lien certificates and/or purchase real estate for a fraction of its true market value with Illinois tax deeds.
The taxes are auctioned, the buyer charging the lowest interest rate to the homeowner wins.
This information was obtained under the Freedom of Information Act (filed by a citizen): Selzer Property Taxes
In 2012, the taxes were bought at 1% interest.
In 2011, the taxes were bought at 12% interest.
In 2010, the taxes were bought at 2% interest.
2013 tax information was omitted from the FOIA request, but the interest rate is listed on the County website – 1% http://mcleanil.devnetwedge.com/view/RE/14-27-254-012/2013
2014 taxes were bought at 0% interest. – See the previous story above. Why would Shannon Logston buy taxes at 0% interest? Why were 2010 bought at 2%, 2011 bought at 12%, then 2012 bought at 1%? The maximum interest rate allowed is 18%. If the buyers were trying to make money, 2011 makes sense. The other years don’t.
I do know from the FOIA that 2010-2012 taxes were bought by Realtax Developers, Ltd. Guess who Realtax is? The same people wanting to unload their properties in downtown Bloomington and payoff their loan on the Ensenberger’s building! Merle and Carol Huff!
Source: http://www.ilsos.gov/corporatellc/CorporateLlcController
There’s more.
Additional FOIA requests being filed.
Selzer has some explaining to do! Can he be trusted to serve on the County Board?
and the plot thickens…. wow great work Diane!!! makes you wonder just how corrupt officials are around here!!
However when a past alderperson had a couple of misplaced tax exemptions local potted plant council raised hell and initially refused to seat her. Now this surfaces and those same folks sit silent. Even though the taxes (are paid by another party) one can only imagine the favors and conflicts of interest going on. Now enter the Huffs exhibiting slumlord tendencies by letting the Front and Center building deteriorate yet buying other folks problems. Seems as though the good citizens of Blm. will continue to get the shaft.
The Council sits silent about Federal indictments of County officials. Tax liens are low level issues.
It appears that the Huffs have owned this business since 10/14/1970. That is a lot of years to cash in on property liens. They should not have needed any TIF or should not need to be bailed out now.
Exactly!!!!! If they can buy these properties on their own for pennies on the dollar because someone is delinquent on their taxes, then why do they need all the perks the city is ready to hand them. TIF districts are all about government picking winners and losers and this is but one example of how people who actually pay the high taxes come out on the loosing end.
Who knows–the Huffs may have acquired the downtown properties using the same method.
To Skunk and 4-H: your comments suggest the taxes are being bought as an investment by Realtax Developers LTD with an expectation to earn interest on the value loaned. What if there is never any plan to recoup the investment from the property owner? The County gets it money. The property owner keeps his/her property.
Wow this stinks. I hope one of your FOIA requests is for all the taxes that the Huffs have purchased. Would be very interesting to see what they charge the common folk.