Property Tax Delinquency in the United States

How does a municipality create a property tax enforcement system that is revenue maximizing (property tax collection is as close to 100 percent as possible) but also fair (homeowners are able to remain in their homes)? It is critical for a municipality to have a property tax enforcement system that is equitable, efficient, and effective, resulting in maximum tax revenue without unnecessary harm to a municipality’s vulnerable residents. Municipalities must provide relief for homeowners who cannot pay but also enforce collection for those who can pay. It is difficult to strike this balance because municipalities usually cannot distinguish between property owners who cannot pay, those that do not want to pay, and those who may be impaired and do not know they need to pay. An effective property tax collection system employs enforcement measures that are tailored to these different types of property owners.