9-114.000 - Third Party Interests
|State and Local Real Property Taxes in Civil and Criminal Forfeiture Cases
|Payment of Interest and Penalties on State and Local Real Property Taxes
|Waiver of Costs to Owner Victims in Remission Cases
9-114.100 - State and Local Real Property Taxes in Civil and Criminal Forfeiture Cases
In civil and criminal forfeiture cases, the United States will pay standard ad valorem property taxes up to the date of entry of an order of forfeiture. For additional information on this topic see Chapter 4 of the Asset Forfeiture Policy Manual ("State and Local Real Property Taxes").
9-114.110 - Payment of Interest and Penalties on State and Local Real Property Taxes
The following policy is meant to ensure consistent national treatment of the payment of interest and penalties on state and local taxes on forfeited real property:
- The United States will pay interest but not penalties on overdue taxes;
- The formula for the rate of interest is set forth in 28 U.S.C. § 1961(a);
- Higher rates of interest may be paid where the taxing authority has incurred out-of-pocket interest expenses in excess of the rate specified by 28 U.S.C. § 1961(a), e.g., where tax certificates have been sold to private investors;
- United States Attorneys, with the concurrence of the Money Laundering and Asset Recovery Section (MLARS), Criminal Division, may agree to a higher rate of interest provided that such higher rate is not punitive; and
- Taxes and interest thereon may only be paid up to the amount realized from the sale of the property. See Chapter 4 of the Asset Forfeiture Policy Manual ("Payment of Interest and Penalties on State and Local Real Property Taxes").
9-114.200 - Waiver of Costs to Owner Victims in Remission Cases
It is the policy of the Department of Justice to waive the payment of certain costs and expenses incident to the seizure and forfeiture of property that is being restored through remission to an owner victim of the underlying offense when the owner victim is a natural person. This policy does not apply to non-owner victims. The costs and expenses subject to waiver are property management and case-related expenses incurred in connection with the forfeiture and include storage, maintenance, and security costs, as well as those costs incurred in connection with the requirement that the government provide notice of the action to potential claimants. It is preferable to restore forfeited property to owner victims, thus avoiding disposition costs. In the event property must be sold to restore property to one or more victim owners, the costs of sale will not be waived. Nor should costs be waived where the petitioner seeking remission as an owner victim is an agency of a state or the federal government. See Chapter 4 of the Asset Forfeiture Policy Manual ("Waiver of Costs to Owner Victims in Remission Cases" and "Guidelines and Procedures for Restoration of Forfeited Property to Crime Victims via Restitution in lieu of Remission").
[updated May 2010]