Thread: Property taxes
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Old 05-19-2007, 02:39 PM
farmer_giles_of_ham farmer_giles_of_ham is offline
Mental Jujitsu
 
Join Date: May 2007
Posts: 889
How to Avoid Property tax

Find the right form from the tax assessors office and check the right box. 'Exempt'. How about -'homeless shelter'? Or 'private property'? Try to research the supporting regulations to look for clues.

Heres what I would do-

1. Deed property to a corporate name (just a private trust). Super easy, did it many times. This first step is not absolutely required, but helpful for privacy.

2. Have trust or whoever sign over all right, title, interest, use, posession, etc to another 'person' (another trust-name). Make this a real tight security agreement and include an executed 'quit-claim' deed as part of the package.

3. File this in the UCC real-estate section of the local recorders office. Also file as a mortgage, and as a mechanics lien. Just do it, and take yes for an answer. I did it.

4. All of the above transactions will accrue a filing number. Now execute another 'quit-claim deed' (only needs one signature- of the one quitting), and DEED THE PROPERTY OVER TO THE COUNTY. I am not kidding, give it to the county, the empty title that is. Sign it All rights reserved: subject to ucc file # xxx, lien # zzz, mortgage # hhh, so thats clear. Give the county business address for the owner address

Now what happens?

They can't take the property, they never bought it and you have all these prior liens and securities against the property. They have no actual right to the place. You even have the real title, included in the liens etc. You can always foreclose and take the property back whenever you like. (make sure the security is well written and clear)

The tax statement will go right back to the county, where it will either be

paid
exempt
or ignored

2 out of 3 gets you out of the property tax. Keep track of the situation and see if the property becomes exempt or the tax paid.


Send private message and I will forward an example security agreement that might be helpful.
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