County treasurer forced payment on past tax that wasn't mine.

[hallwaykansas]

My mother owned a tanning salon from 1999-2002. Last month she went to get her auto tag renewed at the Court House. She was told that she would have to pay back property taxes on the tanning equipment from 1996,97,98,99, and 2000, before she would be allowed to get her car tag. She put up a fight that she didn't own the business until late 1999, but they told her that their hands were tied and she had to pay $1439 in full before they would take her tag payment. The tag was expiring that day so she paid in full just to get her tag. They told her to get a lawyer and sue the past owners to try to get any of it back. None of this sounds right to me. Is it legal for them to force her to pay taxes for years that she didn't even own it? They told her that they got her name from an appraiser that just happened to know that she owned it at some point. She doesn't have any records of owning the business to show the years she owned it, it was over 10 years ago. In 10 years there was never a bill, notice, or hold of any kind. Any suggestions or advice is greatly appreciated.

Thank you,

Tony

 

[hallwaykansas]

Also, her tax preparer only keeps records for 7 years, so she said that she can't help her.

 

[FlaRiptide]

The salon's prior owner most likely did not pay the business tangible taxes on the equipment. Thus the new owner, your mother, must pay them. She purchased the business, lock stock and barrel. The taxes were a business liability that were not recorded on the salon's financial reports at the time of the sale. The prior owner was negligent in not making your mother aware of this outstanding debt.

I'm guessing that the statute of limitations is up and she would therefor have no recourse against the prior owner.

Have her check with her accountant regarding payments toward tangible property during the time she has owned the business.

Tangible property records that don't flow properly with all the additions and deletions will raise a red flag with the tax collector's office.

I find it curious that this problem wasn't discovered years earlier. Perhaps it just went dormant and due to the economic times, the tax authority is reviewing old debts.

 

[FlaRiptide]

I just reread your post and realized that your mother no longer owns the salon as of 2002. I would speculate that your mother would not have been responsible for the taxes in arrears. The new and current owner would become liable. Perhaps the salon has gone out of business and that is why the tax authority hooked onto your mother.

When you sell/buy a business you sell/buy all the receivables and liabilities along with the assets.

I'm not an attorney, though I would think your mother could recover the payment from the current salon owner by civil suit if the business is still viable.

Unless someone else replies to this post, consider consulting with a local tax attorney.