Non-taxpayers actually have more appeal rights than taxpayers. A "taxpayer" may still appeal the taxes even though that taxpayer has not paid taxes (non-taxpayer) and is delinquent for as long as the governments will let it go (sometimes years).

Our attorneys tell us that this occurs because the non-taxpayer may at any time pay the taxes under protest, even though the taxes are very delinquent and long past appeal dates. The non-taxpayer will then have six months to file an appeal to the courts in the case of county taxes and thirty days to file suit in the case of municipal taxes.

The issue must be a legal issue, but these issues arise and the taxpayer who paid the taxes on time cannot appeal to the courts on these issues at such a late date. Of course, the timely taxpayer could pay the taxes under protest and would then be able to appeal to the courts. However, the timely taxpayer would still be limited to a time limits from the payment date and the timely taxpayer may not be aware that the taxes were illegal until later. Too late, because if not paid under protest, no way to go to court.

Another instance arises where a taxpayer, who has not paid all the taxes, has the same appeal rights as those taxpayers who have paid all their taxes. I suppose technically such a taxpayer is not a non-taxpayer but at least that taxpayer qualifies in part.

This arises because there are provisions which permit a taxpayer to withhold payment on the disputed portion of the taxes until an appeal to the boards of equalization is finally settled. This could take years, and has on many occasions. If the taxpayer loses the appeal, the money owed the government earns only two points below prime rate. This use of the money owed the government at such a cheap interest rate is a perk not enjoyed by timely taxpayers.

Two points below prime rate (as of March 1 equals 4%) is a greatly reduced interest rate from the 18% per year that is required of other taxpayers to pay who did not pay all the taxes and did not file an appeal. If the partial taxpayer loses the appeal, it actually amounts to a loan from the local government at a very low interest rate.

This partial payment provision places a loophole out there for a taxpayer to file an appeal and only pay the portion not disputed. The balance would be due at some point in the future, but at very little cost for interest.