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.
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.
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.
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