The property taxes will be paid at the sale (even a short sale) of your home. So, in a sense, you will not be liable for them. Since a shaort sale requires the bank to suffer a loss, while at the same time will not require you to come up with any money at the closing, the bank is actually absorbing this cost.
Whether or not you will receive a 1099 may or may not be negotiable with the bank. If the bank releases you from liability for the deficiency, then you will likely receive a 1099. However, there are exceptions which may apply that allow you to exclude the income from the foregiveness of the debt. You should consult an experienced CPA in your community to answer that question.