As the country moves closer to a mortgage meltdown ignited by property owners straining to make monthly payments, more property owners in Leelanau County are not paying their taxes.

The value of property in Leelanau County for which back taxes are owed to the point that the property is in danger of being forfeited has increased dramatically in the past year.

Some $577,248 in 2006 property taxes is listed as delinquent, according to a flyer authorized by the Leelanau County Treasurer's office and inserted in this week's Leelanau Enterprise, representing some 203 property holders and lien holders. One year ago, only $131,588 was listed on 84 parcels for 2005 property taxes.

By far, the largest amount owed by one entity is Suttons Pointe Development, developer of the Bay View condominium project in Suttons Bay Village, although other developments are listed. Suttons Pointe, which began construction in 2004 on a massive project that was projected to eventually double the size of Suttons Bay Village, owes $177,000 on 42 condominium units.

But even taking the Suttons Pointe units out of the back tax list leaves 161 units for which $399,344 is owed.

The higher numbers represent a pattern felt across the state, Kilway said.

"There has been a lot of emails flying around from the county treasurers' association, and it's interesting because a lot of them are saying their forfeitures are up this year. This seems to be a statewide trend."

Kilway said the property tax sale represents a near foolproof method of recouping back taxes, as property owners must pay up or lose their land. The county is first in line to collect back taxes when the property is sold. An auction will be scheduled this summer in conjunction with neighboring counties to sell property taken over by the county.

In the meantime, a "revolving fund" maintained by the Treasurer's office has already paid the state and local units of government the amounts left unpaid by property owners.
Other items of interest in the delinquent tax list, which is being inserted in the Dec. 20 and 27 and the Jan. 4 editions of the Enterprise:

• The second-largest development owing back taxes was Brewery Creek in Greilickville, which was designed as a large retail and office center with some residential units. The development has failed to take off — and owes $35,957 in 2006 taxes over 10 property units.

• Kilway reports that one property owner did make payment by Nov. 30, as required to stay off the published list, but her property was inadvertedly not removed. The $4,384 listed as owed by Kristen Perry has been received by the county.

• The list includes property owners and others who may have a lien on the property. Consequently, the identical amount owed for the same property may appear under more than one name. For this story, the Enterprise included values listed for property and lien holders.

• Turns out the tax man is not exempt from … the tax man. One property appearing on the list is owned by the "Internal Revenue Service," which ironically owes $966.26 in back taxes.

No word on if the IRS's people are getting with the county's people to facilitate a solution.