Request By:
J. Stewart Wheeler
Wheeler & Wheeler
Attorneys-at-Law
Post Office Box 328
Russellville, Kentucky 42276
Opinion
Opinion By: David L. Armstrong, Attorney General; By: Alex W. Rose, Assistant Attorney General
You inquire about the the period of limitations applicable to real property taxes and indicate that you believe it to be five years. It is true that KRS 134.420 provides for a lien ". . . for five years following the date when the taxes become delinquent . . . ." However, with respect to real property taxes the statute of limitations is extended for an additional period of slightly more than three years.
Property taxes are payable on September 15 of the year they are assessed and become delinquent on January 1 of the following year. KRS 134.020. The initial tax collector on both real property and personal property tax bills is the sheriff of the county. If the sheriff is unable to collect the personal property tax bills, he must eventually turn them over to the fiscal court. KRS 134.370. But the uncollectible delinquent real property tax claims are sold by the sheriff at the courthouse door. KRS 134.430(3); KRS 134.440. Normally there are no bidders at these sales. In that event, the sheriff is required to purchase the tax claims in the name of the taxing authorities. KRS 134.450(2). No matter who purchases the tax claim, it is thereafter known as a certificate of delinquency. KRS 134.440(2); KRS 134.450(2). The sheriff then gives the certificates of delinquency to the county clerk for filing. KRS 134.450(3). No action may be taken to collect upon the certificate of delinquency for three years from the date of its issuance. KRS 134.470. That statute further provides, "During the three (3) year period the statute of limitations shall be suspended in all respects and shall be continued in all respects for five (5) years thereafter."
From the foregoing, it should be clear that the owner of a certificate of delinquency is legally entitled to enforce his lien against the delinquent property at any time after three years from the date of the issuance of the certificate of delinquency up to eight years from the date of the issuance of the certificate of delinquency. Since the sheriff must settle his accounts with the local taxing districts and the county fiscal court by June 1 of each year, the tax sale which serves to convert the real property tax claims into certificates of delinquency will normally occur no later than April or early May of the year following the assessment date. This means that if the normal tax procedures and tax calendar have been followed, a valid tax lien on unpaid real property taxes would extend back as far as the 1976 tax year.