Once again, New Jersey and Illinois ranked as the two worst states in the country when it comes to property taxes, according to a new survey from personal finance website WalletHub. In order to identify the states with the highest and lowest property taxes, WalletHub’s analysts compared the 50 states and the District of Columbia using U.S. Census Bureau data to determine real-estate property tax rates. While property taxes vary from county to county across the state, WalletHub divided the “median real-estate tax payment” by the “median home price” in each state to determine the property tax rate.
The Boston, Massachusetts Redevelopment Authority (BRA) will vote to approve a controversial $7.8 million property tax break for Boston Properties and Delaware North Cos.' proposed $950 million redevelopment of the former Boston Garden site next week. The project will include 45,000-square-foot lease for a Star Market, as well as a 600-foot tower among the three-building complex. The tower prompted many vocal protests from the neighborhood; however, because it is located in a designated "blighted" area, the 15-year tax deal was confirmed. Mayor Thomas Menino's administration pushed for the deal to “secure the critical tenant (Star Market) and create tax certainty” during the first phase of the 1.87 million-square-foot mixed-use project, according to the Boston Herald.
When buying an operating business such as a hotel, many purchasers forget to obtain a tax clearance certificate from the state in which the business is operated before the sale is closed. A Tax Clearance Certificate is a certified statement from the state department of revenue which states that all tax returns have been filed and that all taxes owed by the owner have been paid.
A tax clearance certificate protects the buyer of a business from having to pay any sales and use tax owed by the business that is being purchased. This successor liability also applies when assets are purchased. If a tax clearance is not obtained and the prior owner did not pay their state sales taxes, withholding taxes, and various state excise taxes, the new owner will be required to pay any tax, interest and penalties that would have been due from the prior owner.