"Man Wins Free Dream Home, Can't Afford Sales Tax"
I'm sorry. I thought sales tax meant sales tax.
Maryland may have "deed stamps" you must purchase based on the dollar amount of the real estate when the deed is transferred at the Register of Deeds' office. Sales tax with a different name. It's still sales tax.
Beginning the day that the title is transferred taxes will be due for the amount of time the "winner" owns the home until he sells it. That too could be a few more thousand it cost to win this "prize". Especially if it doesn't move in a very few weeks.
How much will he pay in fees? Accountant, lawyer, grass mowing, somebody to check for break-in, utilities, insurance, on and on. Really more taxes in themselves because you are pretty well forced into these expenses.
How much in penalties will he pay if he doesn't have the tax money now?
He may well have to reduce the price to remove this albatross from his neck. That cuts dollar for dollar from his taxed winnings. Depends on million dollar home market and luck in finding a sucker.
HGTV did sort of warn people who entered. But the only people who could afford to win the home were probably extremely small in the number of entrants. When it is all taken care of I'll bet this family won't even buy a volunteer fire department raffle ticket for fear of winning.
Not when some 20 yo journalism student writes the headline.
(No more Olmert! No more Kadima! No more Oslo! )