Question

Margot purchased shares in a Hawaii Co-op a little over a year ago. She just realized that she never received a property tax bill. Which of these statements might explain this?

a) Co-op purchasers have a two-year grace period before they're required to pay property taxes.
b) Co-ops are personal property, so aren't subject to property taxes.
c) Margot's tax bill got lost in the mail.
d) The cooperative corporation pays the property taxes.

Answer 1

Margot hasn't received a property tax bill because in a co-op, it is the cooperative corporation that pays the property taxes for all its units, not the individual owners.

Step-by-step explanation:

Margot purchased shares in a Hawaii Co-op and is concerned about not having received a property tax bill. The reason Margot has not received an individual property tax bill is likely because in the case of a co-op, the cooperative corporation pays the property taxes on the entire building or complex, rather than the individual share owners being billed directly for the value of their shares. This is a common structure for co-ops, as opposed to condominiums where individuals do receive separate property tax bills for their units.

Furthermore, property taxes in the U.S. are typically imposed by municipal governments and are based on the assessed value of real estate; these taxes support local services and infrastructure. The concept of a two-year grace period for property taxes does not apply here, as property taxes are due annually and co-ops do not change this fundamental aspect of tax collection. Margot's situation is not uncommon for co-op owners and does not signal any errors such as lost mail.