Hundreds of homeowners in south Atlanta are ending up with tax liens that range from $50 to thousands, some critics say, without the homeowners' knowledge.
ATLANTA -- Hundreds of homeowners in south Atlanta are ending up with tax liens that range from $50 to thousands, some critics say, without the homeowners' knowledge.
What begin as small liens on low income properties often balloon into obligations of hundreds or thousands of dollars.
When a homeowner has a lien against their property, the county can sell the lien to private firms for collection after 30 days, a practice that has been banned in more than a dozen states.
Those firms pocket any interest or fees on the collection after paying back the value of the lien to the county.
Fulton County Tax Commissioner Arthur Ferdinand says his office alerts taxpayers, but some choose to ignore it. But others say they are never given notice, and are only made aware when they are on the hook for major collection fees.
The situation has given rise to a growing fight between one of the most powerful lawmakers in the state and Commissioner Ferdinand.
"I had a gentleman show me a $16 dollar lien that Arthur sold and started tacking on all the fees. Now the taxpayer is going to owe 500 percent more," Senate Majority Leader Chip Rogers said.
Rogers says the commissioner is off key and once he gets his hands on the commissioners' records, he'll be able to prove it. But so far, he says the office won't turn them over.
"For him not to turn over public records is very disappointing," Rogers said.
"The information [Rogers] requested was to get my entire database. Basically that's far too difficult," Ferdinand said, adding any information Rogers wants is available on the county's website.
Ferdinand says the county has 2500 payment programs to assist homeowners.
"About three years ago, I initiated a policy that we would not process a lien under $50. I feel very confident that what I do is better for the citizens than foreclose on them when they get into difficult times."
But Rogers insists the Commissioner's office is putting low income homeowners in jeopardy.
"What the Fulton county process has done is target low income neighborhoods, where people don't understand they can't afford to hire a tax attorney," Rogers said.
"The fact is I don't target anyone and the low income houses under $75,000 pay zero taxes. So, I'm not targeting anyone."