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Malden officials warn new tax software and state law could leave property buyers facing old bills
Summary
City Clerk/City Collector Mandy Lewis warned that a new tax system that bills by parcel, not name, could lead new property owners to receive notices for prior unpaid taxes. City Attorney Jonce Chidister also cited RSMo 140.420, which can bar collection of special-tax liens after a Collector s Deed is issued.
Malden, Mo.
City Clerk and City Collector Mandy Lewis told the Malden City Council on July 21 that the city's new tax system categorizes real-estate taxes by parcel number rather than by owner name. She warned that when buyers acquire property without a title search, they may receive bills showing past-due taxes that predate their ownership.
"If the new owner purchased the property directly and a title search was not conducted, City of Malden back taxes may not have been paid," the minutes record Lewis saying.
City Attorney Jonce Chidister explained that, by statute, property taxes remain attached to the parcel regardless of owner and said the council can, at its discretion, forgive back taxes up to a cut-off date or on a case-by-case basis, though he advised against the latter approach. He also told the council that RSMo 140.420, enacted last year, can affect the city's ability to collect on special tax bills: once a Collector's Deed is issued by the county, liens placed for demolition or maintenance may not be collectible.
Lewis said she will attend the August tax sale and will report back if any properties are purchased and special tax bills are paid.
Why it matters: changes to billing methods and the interaction with state statute could shift the incidence of unpaid municipal liens and affect city revenue. Property buyers and title professionals should be aware of potential outstanding local obligations.
What remains unresolved: The minutes do not list how many property accounts may be affected or whether the city will adopt a forgiveness policy or other preventive steps.
