NY Firm Buys Unpaid Tax Bills

Published on:
12 September 2006 at 10:21 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00038312-ny-firm-buys-unpaid-tax-bills/

Some go to Kentucky for the bluegrass. Others, like Sass Muni V, a fairly large group of Manhattan investors, are buying up delinquent property tax bills.

Vinay Jessani, a vice president for Sass Muni V, said the group is obtaining liens on land and houses in 27 Kentucky counties and other states by buying up delinquent property-tax bills.

The profit for groups like Sass Muni V comes off the interest ? for instance, 12 per cent in Kentucky — on the tax bill that state law says must be paid to the lienholder within a year. The investment group isn?t the only one who wins; county and state government agencies receive revenues that might otherwise be lost, Jessani told the Lexington Herald-Leader.