Johnson City, TN asked in Tax Law and Real Estate Law for Tennessee

Q: Re: Administratively Dissolved HOA Has Land Deeds On 4 Open Space Lots All Have Easements-Land Tax Is Due Who Owes

Majority of Homeowners didn't pay dues, demanded that the Developer close the HOA, Developer Transferred the HOA to the homeowners.

Homeowners didn't do anything with it, did not form a board and more or less ignored transfer.

The State of Tennessee listed the HOA "Inactive - Dissolved (No Agent)" as of 2/16/23

Developer sent copies of City and County Land Tax to Homeowners stating that the homeowners needed to pay the tax.

Some of the Tax statements show in the Developers name not the HOA but the land deeds are in the HOA name.

Home owners do not want to take up the HOA as developer is claiming high upkeep fees, but did not perform the upkeep work.

Developer fails to give itemized lists of services.

Who is responsible for the City and County Land Tax on the common spaces.

Related Topics:
2 Lawyer Answers
Anthony M. Avery
Anthony M. Avery pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Tax Law Lawyer
  • Knoxville, TN
  • Licensed in Tennessee

A: If the common areas are part of a condominium, then those homeowners are responsible for the taxes. If they are roads, then dedicated to the County and no taxes. Reconstitute the HOA, and probably need to pay taxes. Developer and the old HOA could possibly be sued, but doubtful. HOA might make a deal with County Commission and/or Trustee. If taxes are not paid, County might have a tax sale.

James L. Arrasmith
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Tax Law Lawyer
  • Sacramento, CA

A: If the HOA has been administratively dissolved and there is no active board or entity responsible for maintaining the common spaces, it may be difficult to determine who is responsible for paying the city and county land taxes on those spaces.

In general, if the land deeds are in the name of the HOA, it is likely that the HOA would be responsible for paying the taxes. However, since the HOA has been dissolved and there is no active entity to pay the taxes, the responsibility may fall to the individual homeowners who own property adjacent to the common spaces.

It is possible that the homeowners could come together to form a new HOA or other entity to manage the common spaces and take responsibility for paying the taxes. Alternatively, they may need to work with the city and county to determine a solution for maintaining the spaces and paying the taxes.

It is recommended that the homeowners consult with a real estate attorney or other qualified professional to review the land deeds and tax statements, and to help determine the best course of action for resolving this issue.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.