Rudy Giuliani's money woes mount; has not paid Palm Beach condo property taxes for two years

Rudy Giuliani’s financial woes go much further than non-payment of federal income taxes.

The former mayor of New York City and Trump confidante, who is struggling to cope with millions of dollars in legal bills stemming from civil lawsuits and criminal charges, has also failed to pay more than two years’ worth of real estate property taxes on his plush condo in Palm Beach, according to county records.

A spokesman for one of the investment firms that has been paying them, Miami-based Mikon Financial Services, says the firm is prepared in April to take the first step toward foreclosing on the three-bedroom unit at Southlake Condominium.

Giuliani has not paid property taxes in either 2021 or 2022. To bring his taxes current and pay off the holders of the two tax sale certificates, he would have to pay them more than $84,000.

“We plan on moving forward in April, which is the earliest we can move to purchase the tax deed,” said a spokesman for Mikon Financial Services.

Once the tax deed is purchased, it could take about a year for foreclosure proceedings to begin. The property would be auctioned off under the supervision of the courts.

After April 1, Giuliani will have to pay interest on what is owed at annual rate of 18%. The condo has a current market value of $3.1 million, according to the Palm Beach County Property Appraiser, but similar units are listed for sale for more than $4 million.

The spokesman for Mikon Financial Services said it is likely that either Giuliani or the holder of the mortgage will pay off the tax deed rather than let the condo go into a foreclosure. At that point, Mikon will receive all of the money it has expended along with interest and penalties.

Under Florida law, a property owner has two years to redeem the tax certificate and reimburse the entity that has paid the property taxes. If that does not happen, the tax certificate holder may auction off the property.

The Palm Beach Daily News recently reported that the Internal Revenue Service placed a federal tax lien on the condo because Giuliani owes more than $500,000 in unpaid income taxes, according to a court filing.

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Palm Beach County Tax Collector Anne Gannon said the tax certificate holders are always in a senior position, ahead of the federal tax lien. That means their liens must be paid first before the IRS lien.

The failure to pay real estate taxes on the Palm Beach condo and the filing of the IRS tax lien for $549,435.26 are the latest signs of Giuliani’s financial woes. Giuliani spokesman Ted Goodman said Giuliani has a formal agreement with the IRS to pay off the liability.

Property records reveal Giuliani and then-wife Judith Nathan bought the Palm Beach condo in 2010 for $1.4 million, and Giuliani assumed sole ownership in 2020, following their divorce.

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The multiple listing service shows the Giulianis listed their condo for sale in June 2019 for $3.3 million, dropping the price to $3 million a month later before removing it from the market in 2020. Were he to try to sell the condo, the IRS lien and property taxes would have to be paid for the buyer to obtain clear title.

Former President Donald Trump recently hosted a $100,000-per-person fundraiser at his Bedminster, N.J., club in September to help Giuliani defray some of his legal bills. The law firm of Davidoff Hutcher and Citron, which represented Giuliani during recent years of investigations and lawsuits, is suing him for more than $1.3 million in unpaid legal fees.

Giuliani faces criminal charges in Fulton County, Georgia, for his role in an alleged conspiracy to subvert the will of voters after Trump lost the state to Joe Biden in 2020, which could easily add millions more in legal bills to Giuliani’s tab.

Giuliani has also been sued over his comments and actions after the 2020 election, when he spread false claims of election fraud. In August, he lost a defamation lawsuit filed against him by two Georgia election workers after he failed to provide information sought in subpoenas.

Mike Diamond is a journalist at The Palm Beach Post, part of the USA TODAY Florida Network. He covers Palm Beach County government and transportation. You can reach him atmdiamond@pbpost.com. Help support local journalism.Subscribe today

This article originally appeared on Palm Beach Post: Rudy Giuliani could lose Palm Beach condo from unpaid property taxes