You do not say whether your niece lives in the home with you, or whether she is paying on a mortgage. If you are occupying the property alone and she is not, she may feel that you are getting more benefits from the property than she is and that it would be unfair for you to expect such payments. If she lives there with you, the situation would be different.
Bottom line, if neither of you is getting materially more benefit from the property than the other, and you are paying more than half, then she should pay her share of the taxes. But maybe she has no financial capacity to do so.
If you feel she has the capacity, and you are enjoying no more benefits from the ownership than she is, then you should consider selling the property and settling up such accounts as part of the sale. If she refuses to do so, you should see a good real estate lawyer in your area and inquire about a "Sale for Division". Most, if not all, States have a procedure in the law whereby the owner of a partial interest in realty can petition the court to sell the land and divide the proceeds if all the owners cannot agree to do so on their own. The sale will almost certainly be by public auction. There will be nothing to prevent you from bidding on the property. Since you already own a half interest, you would have to produce only half the bid price. It's basically a procedure that allows you to purchase her interest if she will not agree to convey it to you herself.
Answered on Feb 28th, 2012 at 7:05 PM