Test Map - Tax Lien Code

Investment Type:
Interest Rate:
Bid Method:
Redemption Period:
Sale Date:
Over-the-Counter Sales:
State Website:
State Statutes:

ALASKA

Investment Type: Tax Deeds
Interest Rate: N/A
Bid Method: Varies by Municipality
Redemption Period: 1 Year Minimum
Sale Date: Varies by Municipality
Over-the-Counter Sales: No
State Website: http://alaska.gov/
State Statutes: http://www.legis.state.ak.us/basis/statutes.asp

Alaska is classified as a tax deed state and handles tax sales through boroughs rather than counties. Every year the tax collector will issue tax lien certificates on delinquent properties and send them directly to the county for filing. One year from the time the tax lien was originally issued the tax lien is eligible for sale. The borough then may sell the property in accordance with the procedures set by the individual municipalities. Many boroughs use a premium bid or a sealed bid method to conduct sales. Prior to the auction the tax collector is required to send certified letters to the last recorded address of the owner and any other party with interest in the property. A list of properties available for the upcoming auction will be listed in the local newspaper prior to the sale. The property owners may redeem the property up to the day before the auction by paying all delinquent taxes, penalties and fees. The tax sale may be referred to as tax deed sales, land sales, or tax foreclosure sales, depending on the borough or city municipalities. Alaska uses different methods within the state to conduct tax sale auctions. To determine the bidding method used, you will need to contact the borough municipalities. Many boroughs will allow you to register the day of the sale. Upon registering you will be given a bidding number which you will use to bid. Tax deeds are awarded to the highest bidder. The two most commonly used methods of buying tax foreclosure deeds in the burroughs of Alaska are the “Premium Bid” and the “Sealed Bid”. The Premium Bid includes all delinquent taxes, penalties, interest, and administrative costs. Property will be bid up in price until a high bid is established. The highest bidder is awarded the deed to the property. To use the Sealed Bid method, you must download or pick up the required county form and submit you bid. It must be received before the day of the sale to be valid.

ALABAMA

Investment Type: Tax Liens
Interest Rate: 12 percent
Bid Method: Premium
Redemption Period: 3 Years
Sale Date: May
Over-the-Counter Sales: Yes
State Website: http://www.alabama.gov/
State Statutes: http://revenue.alabama.gov/advalorem/rulesandregs/code/landlaw.PDF

Alabama is a tax lien certificate state, but also offers tax deed properties in select counties. Tax sales are usually conducted in or in front of the county courthouse building or may be held in any other county owned building. Investors are required to register prior to the auction, although most counties will allow you to register the day of the auction. Upon registration investors will be given a bidder number which will be used during the tax lien auction.

Tax liens are purchased with a 3 year redemption period and a 12 percent annual rate of return or 1 percent per month. Some counties pay interest on both the minimum and premium bid amounts. The majority of the counties use a premium bidding system when auctioning the tax liens.

Alabama uses the premium bidding method at the tax sale. Bidders compete by the amount they are willing to pay above the minimum bid. The total of the delinquent taxes, interest, costs, and penalties determine the minimum bid.

The redemption period for Alabama is 3 years from the date of the sale. Following the 3 year redemption period the county judge of probate awards the deed to the property to the tax lien holder.

Over-the-counter sales in Alabama are handled on the state level it is called “sold to state,” and they offer both tax liens and tax deeds. You can also contact the Commissioner of Revenue for the state to see if there are any tax liens that did not sell on the county level: Alabama Department of Revenue Property Tax Division P.O. Box 327210 Montgomery, AL 36132-7210.

In Alabama the office responsible for collecting delinquent real property taxes is a state government office.

If the state has held a Certificate of Sale less than three years from the date of sale by the county tax collection official, the Certificate will be assigned to the purchaser. If the property is not redeemed by the three year anniversary of the sale to the State, the Certificate holder can surrender the original assigned Certificate to the county redemption official and receive a tax deed upon payment of a nominal issuance fee.

If the State has held a Certificate of Sale more than three years from the date of sale by the county tax collection official, a tax deed will be issued to the purchaser by the State. Tax deeds are given without warranty or covenant of any type; it is the purchaser’s responsibility to determine what, if any, interest in the property is actually being purchased. No refunds are made unless the State had no interest to sell, and then only within two years from the purchase date.

ARKANSAS

Investment Type: Tax Deeds
Interest Rate: N/A
Bid Method: Premium
Redemption Period: N/A
Sale Date: Year Round
Over-the-Counter Sales: Yes
State Website: http://www.arkansas.gov/
State Statutes: http://www.co.benton.ar.us/Media/Document/Assessor/ARCode-Feb2010.pdf

Arkansas is classified as a tax deed state. Tax sales are determined by the county and are held throughout the year. Investors will need to register before the auction, but in most counties you will be able to register the day of the auction. The starting bid on most tax deed properties is required by state law to be the assessed value given of the property based on the county’s assessment. The assessed value is approximately 20% of the property’s actual value. When the amount is combined with the delinquent taxes from the previous years, the beginning bid is usually 20% – 30% of the actual value. Tax deeds purchased may be redeemed by the previous owner up to 30 days after the sale. If a property has been redeemed, the investor will receive full refund of the purchased price. Property owners are given 2 years of tax delinquency before the county will foreclose on the property and take possession of the land.

Arkansas conducts tax sales through an oral auction. Investors will need to register before the auction to participate in the auction. They will be given a bidder number, which they will use for the auction. The starting bid on most tax deeds will be the assessed value given of the property based on the county’s assessment. The assessment value is approximately 20% of the properties actual value. Deeds are bid up in price until a high bid has been established. The highest bidder is awarded the deed to the property.

Arkansas holds a Premium Bid method. The starting bid includes all delinquent taxes, penalties and administrative cost. The property is bid up in price until a high bid is established. The top bidder receives the deed to the property. Investors can also place bids through the mail by a sealed bid. All bids must be mailed to the commissioner of state lands.

ARIZONA

Investment Type: Tax Liens
Interest Rate: 16 percent
Bid Method: Bid Down the Interest Rate
Redemption Period: 3 Years
Sale Date: February
Over-the-Counter Sales: Yes
State Website: http://www.az.gov/
State Statutes: http://www.azleg.state.az.us/ArizonaRevisedStatutes.asp?Title=42

Arizona utilizes tax lien certificates to collect delinquent property taxes. Investors are drawn to Arizona due to the 16 percent interest rate. Investing is made simple in Arizona because most of the counties make the lists available online and provide online resources for researching.

Tax lien sales are held annually in the month of February. It is required that investors register before the auction starts, and in most cases the counties will allow you to register the day of the auction. When registered, the investors will be given a bidder number, which will be used to identify the investor during the tax lien sale.

Arizona has a redemption period of 3 years. The bidding process is a Bid Down Interest, which allows bidders to compete by lowering the rate of return they are willing to accept.

Arizona rate of return is 16% on Tax Lien Certificates. Property owners have a 3 year period to repay the delinquent taxes and penalties. Any time after the redemption period, but not exceeding 10 years, the investor may initiate foreclosure with the superior court in the county that the property is located in.

Bid Down Interest – Bidders compete through lowering their acceptable interest rate of return. Bidders will pay the combined total of all delinquent property taxes, penalties and fees.

CALIFORNIA

Investment Type: Tax Deeds
Interest Rate: N/A
Bid Method: Premium
Redemption Period: N/A
Sale Date: Spring
Over-the-Counter Sales: No
State Website: http://www.ca.gov/
State Statutes: http://www.leginfo.ca.gov/cgi-bin/calawquery?codesection=rtc&codebody=&hits=20

California uses a tax deed auction method to collect delinquent real property taxes. Tax sales in California are typically held in the early spring months, but this may vary depending on the particular counties. Registration is required to attend auctions, and must be completed prior to participating in the auction.

Most counties require registration at least 2 weeks or more prior to the date of the auction- and a required deposit is also quite common. The minimum bids are subject to a minimum price requirement, which is determined by the county prior to the sales day.

Many of the counties in California are holding their tax deed auctions on the online bidding site bid4assets.com. This is good and bad news depending on how you look at tax delinquent real property investing. Some of the largest tax deed auctions occur in this state in Orange County, San Francisco County, and San Diego County. The L.A. County Tax Deed Sale is one of the most popular auctions in the world.

Most hold their sales in the Springtime, but can be held year round with sale dates being set by the individual county. Investors will need to register prior to the date of the sale. Auctions are conducted through an oral bidding process. The county determines the minimum bid on the properties.

Because of California code (CA GC6254.21), property owner names are usually not disclosed over the phone or on the internet. This may make research more difficult. Many California title companies are available and able to assist with this type of records and parcel data research.

California uses a Premium Bid method. The starting bid includes all delinquent taxes, penalties, and administrative cost and also may include the minimum selling price set by the county. The property is bid up until a high bid has been established. The top bidder receives the deed to the property. There are two other methods which are rarely used, the first is the “Sealed Bid” and second the “Agreement Sale”.

In California, the tax collector or treasurer will sell tax deeds to the winning bidder at the delinquent property tax sale.

Tax Sale Type: Tax Deed (Sec. 3708).
Contact: Tax collector or treasurer (Sec. 3371).
Bid Procedure: Premium bid/highest bidder (Sec. 3693 (a)).
Redemption Period: N/A (Sec. 3707).
Law: California Revenue and Taxation Code, Division 1, Part 6, “Tax Sales,” Part 7, “Redemption,” and Part 7.5, “Tax Certificates.”

COLORADO

Investment Type: Tax Liens
Interest Rate: 9 percent
Bid Method: Premium
Redemption Period: 3 Years
Sale Date: October – December
Over-the-Counter Sales: Yes
State Website: https://www.colorado.gov/
State Statutes: http://advisorfinancialservices.com/Colorado_Tax_Lien_Statutes.pdf

Colorado is classified as a tax lien certificate state. County tax sales are typically held each year between October and December. The county posts a list of all tax delinquent properties prior to September first of each year. The county sends out certified notification letters to the last recorded address of the property owners as well as all parties with a vested interest in the property being sold. The county also publishes a notice of the impending sale in local newspapers for a period of four consecutive weeks. All affected property owners have the right to redeem their property by making a full payment on their delinquent taxes, penalties, and related fees prior to the posted deadline. All properties that are not redeemed will be sold at a public auction held by the respective county. The county treasurer is responsible for conducting and officiating all tax liens sold. The starting bid is the combined total of all delinquent taxes, penalties, and fees.

Tax liens are purchased with a redemption period of three years. The original property owner can redeem their property ownership at any time during the three year redemption period by submitting a full payment of all delinquent taxes, penalties, and any related fees along with the designated interest rate. If the property owner does not redeem the property during the three year redemption period, the buyer may apply for a deed to the property by presenting the tax lien certificate and paying off the property’s unpaid tax balance.

Colorado has a rate of return at 9% above the federal discount rate. This means the interest rate can change from year to year. The federal discount rate is set by the federal government.

Colorado uses the “Premium Bid” method. Counties that use this method will have a starting bid that includes all delinquent taxes, penalties, and fees. Bidding starts at the set minimum and is bid up in price until the bidding stops. The highest bidder is awarded the tax lien to the property.

Many counties in Colorado, especially the larger ones (more population like Denver County, El Paso County- Colorado Springs, Adams County- Aurora, Jefferson County- Lakewood, and Larimer County- Fort Collins ) may use realauction.com for online bidding. They have some wonderful educational opportunities to get you familiar with bidding prior to the auction’s start. Be sure to take advantage of that!

NOTE: In Colorado, the bidder does NOT receive back any premium bid over the tax lien amount or any interest on that amount.

CONNECTICUT

Investment Type: Tax Liens
Interest Rate: 18 percent
Bid Method: Premium by RFP
Redemption Period: 1 Year
Sale Date: Varies
Over-the-Counter Sales: No
State Website: http://portal.ct.gov/
State Statutes: https://www.cga.ct.gov/2014/sup/title_12.htm

In Connecticut the local tax collector oversees the sale which is conducted through oral public auction. Tax sales are held throughout the year which is determined by the counties and municipalities. Tax sales are published in a local newspaper several weeks prior to the sale. Tax deeds sold in Connecticut are purchased with a one year right of redemption. Within a couple weeks after the sale, the investor will receive a deed to the property from the tax collector. The deed will be stored unrecorded for a period of one year from the date of the sale. if the property owner does not pay all delinquent taxes, interest, penalties, and fees by the end of the twelve month redemption period, all redemption rights are terminated and the purchaser takes possession.

Connecticut uses a Premium Bid type method. The counties bid will include the back taxes, penalties, interest, and ay administrative cost. the deed will be bid up in price until a high bid has been established. The investor with the highest bid, receives the deed to the property.

In Connecticut, the tax collector or treasurer will sell hybrid tax deeds to the winning bidders at the delinquent property tax sale.

Tax Sale Type: Hybrid Tax Deed (Sec. 12-157).
Contact: Tax collector or treasurer (Sec. 12-155).
Interest Rate and/or Penalty Rate: 18% per annum (Sec. 12-157 (f)).
Bid Procedure: Premium bid/highest bidder(Sec. 12-157 (c)).
Redemption Period: Six months or sixty days (Sec. 12-157 (f)).
Law: Title 12, Chapter 204 (Local Levy and Collection of Taxes) and Chapter 205 (Municipal Tax Liens).

WASHINGTON DC

Investment Type: Tax Liens
Interest Rate: 18 percent
Bid Method: Premium
Redemption Period: 6 months
Sale Date: July
Over-the-Counter Sales: Yes
State Website: http://dc.gov/
State Statutes: http://dccode.elaws.us/gateway/codepdf/title42/chapter42-11/1753-01-01/chapter42-11(1753-01-01).pdf

The District of Columbia has a tax lien auction each year around the month of July. Any liens left from the auction will be placed in an ongoing discount auction.

DELAWARE

Investment Type: Tax Deeds
Interest Rate: 15 percent penalty
Bid Method: Premium
Redemption Period: 60 Days
Sale Date: Year Round
Over-the-Counter Sales: No
State Website: http://delaware.gov/
State Statutes: http://delcode.delaware.gov/title9/c087/index.shtml#P-1_0

There are 3 counties in Delaware, which hold tax deed sales. Tax sales are conducted by the county sheriff. The minimum bid is the amount of past due taxes, interest, costs, and penalties. The finance department or the chief county financial officer approves or disapproves the final bid at a sale made by the Sheriff.

Delaware uses the Premium Bid Method. The counties bid will include the back taxes, penalties, interest, and any administrative costs. The deed will be bid up in price until a high bid has been established. The investor with the highest bid receives the deed to the property.

The redemption period in Delaware is 60 days from the time of the sale. If the property owners chooses to redeem the property, he must pay back the full amount of the bid plus the rate of return at 15%.

The state statutes in Delaware allow the counties more than one way to handle their tax sales. In some counties you will see a 20% interest and a one year redemption, and other will be the way you see above with a 15% interest and 60 day redemption. After the sale the county attorney has to approach the Supreme Court and petition for completion of the sale. The faster the owner pays the delinquent taxes, the greater the return of the investor.
Sussex County Treasury Division The Circle, P.O. Box 429, Georgetown, DE 19947 Phone: 302-855-7760 Fax: 302-854-5078

In Delaware, the taxing authority will sell hybrid tax deeds to the winning bidders at delinquent property tax sales.

Tax Sale Type: Hybrid Tax Deed (Sec. 8727).
Contact: Tax collecting authority (Sec. 8773).
Interest Rate and/or Penalty Rate: 15% penalty (Sec. 8758)
Bid Procedure: Premium bid/highest bidder (Sec. 8779).
Redemption Period: 60 days (Sec. 8729).
Law: Delaware Code, Title 9, Part V, Chapter 87, “Collection of Delinquent Taxes.”

FLORIDA

Investment Type: Tax Liens
Interest Rate: 18 percent
Bid Method: Bid Down the Interest Rate
Redemption Period: 2 Years
Sale Date: May
Over-the-Counter Sales: Yes
State Website: http://www.myflorida.com/
State Statutes: http://www.leg.state.fl.us/Statutes/index.cfm?mode=View%20Statutes&SubMenu=1&App_mode=Display_Statute&Search_String=Title+14+Chapter+197&URL=0100-0199/0197/Sections/0197.502.html

Florida is a hybrid state meaning that each county holds tax lien and tax deed auctions. All counties hold an annual tax lien sale, but the counties sell tax deeds once the unsold tax lien properties have met their two year redemption period. The tax collector generally oversees all delinquent property taxes, interests, penalties and property seizures. Public notices for upcoming auctions are usually advertised in local newspapers about 3 weeks prior to the upcoming sale. Tax lien auctions are an oral or online bidding system wherein the investors compete by bidding down the interest rate. The investor willing to pay all back taxes, penalties, and fees and then bids the lowest interest rate receives the certificate.

Tax lien investors receive up to an 18% rate of return annually with a guaranteed minimum return of 5% on liens that redeem early. Example, if an investor purchases a tax lien certificate and it is redeemed within 30 days, the rate of return would be the annual rate divided by 12 months. At an interest rate of 18%, a certificate redeemed within 30 days would only yield 1.5%. However, in Florida, if the rate of return of the face value of the certificate is less than 5%, a mandatory rate, or penalty of 5% is guaranteed to the investor if the tax lien is redeemed within 90 days.

The “Bid Down Interest” is the method used in Florida during tax lien auctions. The tax lien certificate amount is set by the combined total of all delinquent taxes, interests, penalties, and costs. Investors will bid down the interest rate of return they are willing to accept in return for paying the certificate cost. Due to Florida’s minimum 5% return, bidding can go as low as 1/4%, and still offer investors an above-average return.

Tax lien certificates may be redeemed at any time within 2 years after April 1st of the year of the issuance of the tax certificate. Following the two-year redemption period, the county is able to issue a deed to the property. The county will hold a tax deed sale to determine the new property owner. Bidding will begin with the amount the certificate holder has invested in the property, plus the interest accrued. If the certificate holder is outbid, or if he/she has no interest in gaining ownership of the property, the certificate holder will be reimbursed as if the original property owner had redeemed.

Each county in Florida does one annual tax lien certificate sale and multiple tax deed sales. The county tax collector usually handles the annual lien sale; the county clerk of the courts usually handles the deed sale. The foreclosure of the lien sale is not “self-executing” this is why all counties have annual lien sales and frequent tax deed sales. The smaller counties usually have deed sales every two or three months, while the larger counties might hold one or more each month.

GEORGIA

Investment Type: Redemption Deeds
Interest Rate: 20% Penalty First Year, 10% Penalty Subsequent Years
Bid Method: Premium
Redemption Period: 1 Year
Sale Date: Varies by County
Over-the-Counter Sales: No
State Website: http://www.georgia.gov/
State Statutes: http://dor.georgia.gov/liens

In Georgia, tax sales are very similar to those in a tax lien state. The county tax commissioner oversees the sale which is an oral public auction. Tax deeds that are sold in Georgia are purchased with a one year redemption period. A penalty rate of 20% is applied to the redemption of all tax deeds. The property owner has a twelve month period to pay all delinquent taxes, interest, penalties and fees without risk of losing their property. If they fail to pay the delinquent property taxes, fees, and penalty, the investor may begin the process of terminating redemption rights. This process is required to be performed by the investor. The investor is required to send out certified letters to the last recorded address of the owner and any other party with interest in the property. The foreclosure process can be completed judicially or administratively. Upon foreclosure the investor is required to run a foreclosure notification in the local newspaper for 4 consecutive weeks prior to the redemption deadline.

Georgia has a 20% penalty rate that is applied for the first year. Each subsequent year, assuming the investor does not complete the foreclosure to take full ownership, earns an additional penalty of 10% if the property owner redeems themself.

Georgia uses the Premium Bid method. The county’s starting bid will include all back taxes, penalties, interest, and administrative costs. The investor who bids the highest amount will receive the deed to the property.

In Georgia, the tax collector or treasurer will sell hybrid tax deeds to the winning bidders at the delinquent property tax sale.

Tax Sale Type: Hybrid Tax Deed (Sec. 48-4-1).
Contact: Tax collector or tax commissioner (Sec. 48-4-3).
Interest Rate and/or Penalty Rate: 20% penalty of the amount for the first year or fraction of a year and 10% penalty for each year or fraction of a year thereafter(Sec. 48-4-42)
Bid Procedure: Premium bid (Sec. 48-4-2 ).
Redemption Period: One year (Sec. 48-4-40).
Law: Official Code of Georgia, Title 48, Chapter 3, “Tax Executions,” and Chapter 4, “Tax Sales.”
NOTE: According to (Sec. 48-4-45) once the 12 month redemption has expired, the investor must take immediate action to terminate the owners right to redeem.

HAWAII

Investment Type: Redemption Deeds
Interest Rate: 12 percent
Bid Method: Premium
Redemption Period: 1 Year
Sale Date: Varies
Over-the-Counter Sales: No
State Website: www.ehawaii.gov
State Statutes: http://www.honolulu.gov/rep

Tax sales in Hawaii are very similar to those conducted in a tax lien state. The county tax collector or treasurer oversees the tax sales. Tax deeds sold in Hawaii are purchased with a one year right of redemption. Tax deeds must be recorded with the county within 60 days of the sale to maintain a 12 month redemption period. If the tax deed is recorded later than 60 days from the auction date the redemption period is one year from the recorded date. A penalty rate of 12% is applied to the redemption of all tax deeds. If the property owner does not pay all delinquent taxes, interest, penalties, and fees by the end of the 12 month period the tax collector or tax collector’s assistant shall execute the process of terminating redemption rights. Hawaii has a 12% penalty rate for the first year. The penalty rate is paid on the amount paid by the purchaser, plus an additional fee for recording the tax deed. If a deed is not recorded within 60 days of the sale, the interest shall not be added for the extended redemption period. Hawaii uses the Premium Bid method. The starting bid will include all back taxes, penalties, interest, and administrative costs. The deed will be bid up in price until a high bid has been established. The investor bidding the highest amount will receive the deed to the property. In Hawaii there are two main areas to invest in, the west and the east. According to local facts, the west area has more property that can be accessed. There are very few tax deed properties available in this state, but when there are auctions, they usually take place in June, November, and December.

IOWA

Investment Type: Tax Liens
Interest Rate: 24 percent
Bid Method: Rotational
Redemption Period: 1.75 Years
Sale Date: 3rd Monday of June
Over-the-Counter Sales: No
State Website: https://www.iowa.gov/
State Statutes: https://www.legis.iowa.gov/docs/iacode/2001/x.html

Iowa is classified as a tax lien state. On the third Monday in June of each year, the county treasurer will conduct a public sale of all the parcels that are delinquent on their property taxes. The tax sales are conducted as an oral public auction, although bids may also be mailed. Tax liens are purchased with a two year right of redemption. The rate of return is 24% annually, or 2% per month. Technically, liens are awarded based on the bidder willing to accept the lowest percentage of ownership of the property. However, most county treasurers don’t utilize this system due to its complicated nature. Most counties use either a random selection process, or a rotational bidding system. If the property owner does not pay all delinquent taxes, interest, penalties, and fees by one year and nine months into the redemption period, the investor may begin the process of terminating the right to redeem. The lien holder must file a “90 day notice of right of redemption affidavit.”

Iowa uses a few types of bidding methods. The “bid down ownership” method where investors compete by bidding down how much of the property will be security for the lien. Using this system, in order for a lien holder to prosecute the foreclosure, they would have to file a court action to sell the property, and then divide the process based on the percentage of ownership they hold. Because of this system’s obvious flaws, counties utilize a “Rotational Bidding System” or a “Random Selection” method. In rotational bidding the county treasurer offers tax liens to investors based on a list of all investors present. When an investor comes next on the list, they are given the opportunity to purchase the lien being offered. If they choose to decline, the lien is then offered to the next investor listed. In the process of random selection investors are randomly drawn and given the choice to purchase the line being offered.

Iowa has a two year right of redemption. If the property owner does not pay all delinquent taxes, interest, penalties, and fees by one year and nine months into the redemption period, the investor may begin the process of terminating the right to redeem. The lien holder must file a “90 day notice of right of redemption affidavit”. If a lien holder fails to file a 90 day notice on a certificate after a period of 3 years from the date of sale, the county treasurer may cancel the lien.

Tax Sale Type: Tax Lien Certificate (Sec. 446.1).
Contact: The county treasurer or tax collector (Sec. 446.7).
Interest Rate and/or Penalty Rate: 24% per annum (Sec. 447.1)
Bid Procedure: Bid down ownership interest (Sec. 446.16).
Redemption Period: 2 years (See “Notes”). (Sec. 447.9).
Law: Code of Iowa, Title X, Subtitle 2, Chapter 446, “Tax Sales,” Chapter 447, “Tax Redemption,” and Chapter 448, “Tax Deeds.”

In the statutes, Iowa law states that the bid method used it suppose to be bid down the ownership of a property (although almost every county does random selection and rotational bidding). What that means is that you are bidding down the amount that backs a lien. So, if the property owner does not redeem in the said time, the investor is able to foreclose and own only the percentage of the property that they won the bid on.

The redemption period in this state does not automatically terminate, the lien holder is able to file after 1 year, 9 months, and can become the owner at 2 years if not redeemed. If the lien holder does nothing after three years they can lose their claim to the property.

IDAHO

Investment Type: Tax Deeds
Interest Rate: N/A
Bid Method: Premium
Redemption Period: N/A
Sale Date: Summer
Over-the-Counter Sales: Yes
State Website: http://www.idaho.gov/
State Statutes: http://legislature.idaho.gov/idstat/TOC/IDStatutesTOC.htm

Idaho utilizes a tax deed system to collect delinquent property taxes. If the property taxes have not been paid by the property owner for a period of three years the county tax collector will create a tax deed. Idaho uses a premium bidding system with the board of county commissioners reserving the right to reject any and all bids. The minimum bid is determined by the county commissioners, but is based on a recommendation given by the county treasurer. The minimum bid consists of all delinquent taxes, penalties, interests, pending issue fees, recording fees, and publication costs for notice of the sale.

Idaho has oral bids at all tax sales. The bidding process is a Premium Bid method. Bidding begins at the set starting or minimal bid. The minimum bid is determined by the county commissioners, but is based on a recommendation given by the county treasurer. The minimum bid consists of the delinquent taxes with penalty and interest certification and special assessments, pending issue fees, recording fees, and publication costs for notice of sale. The property is bid up in price until a high bid is established. The highest bidder receives the deed to the property. In Idaho, the tax collector or treasurer will sell tax deeds to the winning bidders at the delinquent property tax sale.

Tax Sale Type: Tax Deed (Sec. 31-808).
Contact: Tax collector (Sec. 31-2102).
Interest Rate and/or Penalty Rate: Not applicable.
Bid Procedure: Premium bid / highest bid (Sec. 31-808 (1)).
Redemption Period: Not applicable.
Law: Idaho Code, Title 31, Chapter 8, “Powers and Duties of Board of Commissioners,” and Title 63, Chapter 10, “Collection of Delinquency on Real, Personal, and Operating Property.”

In Idaho most liens on the property are excused through the tax sale, except for any lien holders that were not noticed.

The county commissioner determines the minimum bid, which is most often the amount owed on the property and many more random fees associated with the sale and the property being delinquent.

ILLINOIS

Investment Type: Tax Liens
Interest Rate: 18 percent
Bid Method: Bid Down the Interest Rate
Redemption Period: 2 – 3 Years
Sale Date: Varies by County
Over-the-Counter Sales: Yes
State Website: http://www.illinois.gov/Pages/default.aspx
State Statutes: http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=003502000HTit%2E+7&ActID=596&ChapAct=35%26nbsp%3BILCS%26nbsp%3B200%2F&ChapterID=8&ChapterName=REVENUE&SectionID=9263&SeqStart=56900000&SeqEnd=77300000&ActName=Property+Tax+Code%2E

Illinois utilizes a tax lien certificate system to collect delinquent property taxes. The state rate of return is set at 18% interest; however, bidders compete through a process of bidding down the interest rate. Illinois also conducts what is called a Scavenger Sale. These tax sales are for delinquent properties that were not sold during the annual sale. Scavenger Sales are the state’s alternative to offering over-the-counter tax lien properties. Illinois is an oral bid state. Illinois requires a preregistration along with a deposit at least 10 days before the auction. Counties usually publicly announce the sale about a month prior to the sale.

Illinois uses a Premium Bid method. The county sets the tax lien amount, and bidders compete by lowering the interest rate of return. The investor willing to accept the lowest amount of interest is rewarded the lien.

A 2-year redemption period is typically the standard in Illinois. The owner of the tax lien certificate has the option to extend the redemption period to 3 years from the date of the sale.

Illinois is unique in that it holds two types of tax sales; Regular tax sales and Scavenger tax sales.

Regular Tax Sales consist of properties which were delinquent the previous year. Bidding begins at 18% and tax lien certificates are sold to the bidders willing to accept the lowest rate. The property owner has up to three years to exercise his or her right to redeem the property.

Scavenger Tax Sales consist of properties which were delinquent for two or more years. According to (Sec. 21-260) the ‘minimum bid for any property shall be $250 or one-half of the tax if the total liability is less than $500.‘

Penalty rate: The person at the sale offering to pay the amount due on each property for the least percentage shall be the purchaser of that property. No bid shall be accepted for a penalty exceeding the maximum of 18% (Sec. 21-215). For Regular Tax Sales, the penalty percentage is then computed through the date of redemption as a percentage of the certificate amount (Sec. 21-355)

Attaining a Tax Deed: At any time within 5 months but not less than 3 months prior to the expiration of the redemption period for property sold pursuant to judgment and order of sale under Sections 21-110 through 21-120 or 21-260, the purchaser or his or her assignee may file a petition in the circuit court in the same proceeding in which the judgment and order of sale were entered, asking that the court direct county clerk to issue a tax deed if the property is not redeemed from the sale. The petition shall be accompanied by the statutory filing fee.

Notice of filing the petition and the date on which the petitioner intends to apply for an order on the petition that a deed be issued if the property is not redeemed shall be given to occupants, owners and persons interested in the property as part of the notice provided in Sections 22-10 through 22-25, except that only one publication is required. The county clerk shall be notified of the filing of the petition and any person owning or interested in the property may, if he or she desires, appear in the proceeding.

You must record your Tax Deed: Unless the holder of the certificate purchased at any tax sale under this Code takes out the deed in the time provided by law, and records the same within one year from and after the time for redemption expires, the certificate or deed, and the sale on which it is based, shall, after the expiration of the one year period, be absolutely void with no right to reimbursement. If the holder of the certificate is prevented from obtaining a deed by injunction or order of any court, or by the refusal or inability of any court to act upon the application for a tax deed, or by the refusal of the clerk to execute the same deed, the time he or she is so prevented shall be excluded from computation of the one year period. Certificates of purchase and deeds executed by the clerk shall recite the qualifications required in this Section (Sec. 22-85).

INDIANA

Investment Type: Tax Liens
Interest Rate: 10% Penalty First 6 Months, 15% Penalty Second 6 Months
Bid Method: Premium
Redemption Period: 1 Year
Sale Date: August – October
Over-the-Counter Sales: No
State Website: http://www.in.gov/core/
State Statutes: https://iga.in.gov/legislative/laws/2015/ic/

Indiana is classified as a tax lien state. Prior to July 1st of each year the county treasurer will notify the county auditor of all delinquent properties eligible for the annual sale. Tax sales are usually conducted between August through November. The tax sale is conducted as an oral public auction. Tax liens are purchased with a one year right of redemption with an interest rate ranging from 5%-10%. If the property owner does not pay all delinquent taxes, interest, penalties, and fees by the end of the twelve month period, the investor may begin the process of obtaining a tax deed. The lien holder must begin the foreclosure process within nine months of the sale date. A tax deed may be obtained 1 year after the date of sale, but no later than 6 months after the expiration of the redemption period.

Indiana’s interest rate of return ranges from 5% -10% depending on when it is redeemed. This rate is a penalty which is a flat rate and does not accrue with time. A rate of 5% applies to properties redeemed within 6 months of the sale and 10% for properties redeemed after 6 months, but no more than 1 year.

Indiana uses the Premium Bid method. The counties starting bid will include all back taxes, penalties, interest, and administrative cost. The lien is bid up in price with the investor bidding the highest amount receiving the tax lien certificate. The difference between the minimum bid, and the successful bid price is known as the tax Sale Overbid. This money goes into a tax sale surplus fund and may be claimed by either the former property owner who lost ownership rights or the tax lien certificate holder if the property redeems.

The foreclosure process in Indiana is outlined as follows:

Uncontested Foreclosure: 4½ – 6 months minimum.

Filing of the Complaint
Service of process on the debtor: occurs in 5-10 days unless service by publication

Application for default judgment: can be sought 21-24 days after service of process

Entry of default judgment and decree of foreclosure: should occur within approximately 30 days after the Application is filed.

Praecipe for Sheriff’s sale, including notice of same: by statute, cannot be filed until 3 months after the Complaint.

Sheriff’s sale: happens about 45-90 days from Praecipe, depending on the county.

Contested Foreclosure: 6-9 months minimum.

Filing of the Complaint
Service of process on the debtor: occurs in 5-10 days unless service by publication.

Appearance of debtor’s attorney and motion for one or more 30-day extensions of time to respond to the complaint: filed 20-23 days after service of process.

Answer to Complaint: filed 30 days after filing of Appearance and expiration of last motion for extension.

Motion for summary judgment: can be filed immediately after the filing of the Answer.

Objection to motion for summary judgment: due 30 days after the filing of the motion for summary judgment.

Summary judgment hearing: usually held 75-120 days after the motion is filed.

Entry of judgment and decree of foreclosure: occurs on day of hearing, or soon thereafter, unless the motion is vigorously contested with viable defenses.

Praecipe for Sheriff’s sale: can be submitted immediately after the entry of judgment assuming more than 3 months have passed since the complaint was filed.

Sheriff’s sale: takes place 45-90 days from Praecipe, depending on the county.

In Indiana local County Treasurers sell tax liens to the bidder with the highest or greatest bid. Depending on when the owner exercises his/her right to redeem the certificate holder will receive 5% to 10% penalty on the minimum bid and 10% on the excess or overbid. The property owner has one (1) year to exercise his or her right to redeem the property. The certificate holder can apply for a tax deed once the one (1) year redemption has expired but not later than six (6) months after the one year redemption period has expired.

Tax Sale Type: Tax Lien Certificate (Sec. 6-1.1-24-9 ).

Contact: County Treasurer. (Sec. 6-1.1-24-5(e) ).

Interest Rate and/or Penalty Rate: 5% to 10% penalty. (Sec. 6-1.1-25-2 <). Bid Procedure: The highest or greatest bid. (Sec. 6-1.1-24-5 ). Redemption Period: One year. (Sec. 6-1.1-25-4 ). Law: Indiana Code, Title 6, Article 1.1, Chapter 24, “Sale of Real Property When Taxes or Special Assessments Become Delinquent,” and Chapter 25, “Redemption of and Tax Deeds for Real Property Sold for Delinquent Taxes and Special Assessments.” Additional Notes: Penalty interest rate paid upon redemption The tax lien certificate holder will receive a 5% to 10% penalty, depending on when the home owner exercises his or her right to redeem. According to (Sec. 6-1.1-25-2 ) when redeemed, the home owner will have to pay as follows: For the minimum bid (delinquent taxes, special assessments, etc.): (105%) of the minimum bid if redeemed ‘not more than six (6) months after the date of sale; or’ (110%) of the minimum bid if redeemed ‘more than six (6) months but not more than one (1) year after the date of the sale.’ For the overbid (the amount over and above the minimum): ‘plus ten percent (10%) per annum on the amount by which the purchase price exceeds the minimum bid on the property.’ Applying for a tax deed: According to (Sec. 6-1.1-25-4.6 ) the owner of the tax lien certificate must apply for the tax deed ‘not later than six (6) months after the one year redemption period has expired.’ Consequently, according to (Sec. 6-1.1-25-7 (a) ) if the purchaser ‘fails to file the petition within the period provided in section 4.6 of this chapter, that person’s lien against the real property terminates at the end of that period.’ In addition, according to (Sec. 6-1.1-25-7 (b) ): ‘If the notice under section 4.5 of this chapter is not given within the period specified in section 4.5(a)(3) or 4.5(c)(3) of this chapter, the lien of the: (1) purchaser of the property; or (2) purchaser of the certificate of sale under IC 6-1.1-24; against the real property terminates at the end of that period.‘ ‘Notice’ according to (Sec. 6-1.1-25-4.5 ) includes a notice ‘not later than ninety (90) days after the date of sale of the certificate’ and a second notice ‘ not later than nine (9) months after the date of the sale’.

KANSAS

Investment Type: Tax Deeds
Interest Rate: N/A
Bid Method: Premium
Redemption Period: N/A
Sale Date: Varies by County
Over-the-Counter Sales: Yes
State Website: http://www.kansas.gov/
State Statutes: http://www.ksrevisor.org/statutes/ksa_ch79.html

Kansas is classified as a tax deed state. Tax sales are usually between the months of August and October. The counties publicize the tax sales in local newspapers approximately 10 days prior the sale. Some counties require bidders to pre-register prior to the tax sale. The

Some counties even allow the starting bid to begin below the tax lien amount or set no minimum bid at all. Tax deeds are sold to the person bidding the highest amount above the minimum bid.

Kansas uses the ” Premium Bid” method. Counties determine the starting bid by the combined total of all delinquent taxes, penalties, interest, and costs.Tax deeds are bid up in price until a high bid is established. Tax deeds are sold to the highest bidder.

In Kansas, the County Sheriff or Tax Collector will auction and sell tax deeds to the winning bidders. The winning bidder is the one with the highest bid.

Tax Sale Type: Tax Deed (Sec. 79-2804).
Contact: The Sheriff or Tax Collector. (Sec. 79-2804).
Interest Rate and/or Penalty Rate: Not applicable.
Bid Procedure: Premium bid / highest bid. (Sec. 79-2804).

Redemption Period: Not applicable.

Law: Kansas Statutes, Chapter 79, Article 23, “Sale of Real Estate for Taxes,” Article 24, “Redemption of Real Estate,” and Article 28, “Judicial Foreclosure and Sale of Real Estate by County.”

In Kansas the bidding usually starts at the amount owed on the property, and sometimes even less. They occasionally have auctions where there is no minimum bid.

KENTUCKY

Investment Type: Tax Liens
Interest Rate: 12 percent
Bid Method: Premium
Redemption Period: 1 Year
Sale Date: April – May
Over-the-Counter Sales: No
State Website: http://www.kentucky.gov/
State Statutes: http://www.lrc.ky.gov/statutes/index.aspx

Kentucky is classified as a tax lien state. Tax sales re usually conducted in April of each year. The local county tax collector or local Sheriff will conduct a public sale of all parcels that are delinquent on their property taxes. The tax sales are conducted as an oral public auction and uses a premium bidding method. Tax Liens in Kentucky are purchased with a one year right of redemption. The rate of return is 12% annually, or 1% per month. The state also enforces a penalty of 10% of the total lien amount as compensation to the local tax collector. This amount is paid by the investor as part of the lien’s minimum bid, and is ultimately paid upon redemption by the property owner.

Kentucky uses a premium bid method. The counties starting bid will include the back taxes, penalties, interest and any administrative cost. The lien will be bid up in price until the bidding stops. The investor bidding the highest amount will receive the tax lien certificates to the property.

Tax liens in Kentucky are purchased with a one year right of redemption. If the property owner does not pay all delinquent taxes, interest, penalties, and fees within one year, the investor may begin the process of terminating the right of redemption. Within 50 days of purchasing a tax lien certificate the lien holder is responsible for sending a notice to the property owner. The notice must advise the owner of the penalty rate of 12%, as well as the impending consequences and legal actions if payment is not made.Tax deeds are obtainable through judicial foreclosure following the 1 year redemption period.

In Kentucky, the tax collector or treasurer will sell tax lien certificates to the winning bidders at the delinquent property tax sale.

Tax Sale Type: Tax Lien Certificate (Sec. 134.450).

Contact: The Sheriff or Tax Collector (Sec. 134.450).

Interest Rate and/or Penalty Rate: 12% per annum. (Sec. Sec. 134.490).

Bid Procedure: Premium / Highest Bid. (Sec. 134.450).

Redemption Period: One (1) year. (Sec. 134.470 and Sec. 134.480).

Law: Kentucky Revised Statutes, Title XI, Chapter 134, “Payment, Collection, and Refund of Taxes.”

Notification According to (Sec. 134.490) the purchaser must, within 50 days after the purchase of a certificate of delinquency (tax lien certificate) give ‘notice’ according to the stipulations outlined in Sec. 134.490 to the owner of the tax delinquent property.

LOUISIANA

Investment Type: Redemption Deeds
Interest Rate: 12% APR + 5% Penalty
Bid Method: Bid Down the Interest
Redemption Period: 3 Years
Sale Date: January – April
Over-the-Counter Sales: No
State Website: http://louisiana.gov/
State Statutes: http://senate.legis.state.la.us/Documents/Constitution/Article7.htm#%C2%A725.%20Tax%20Sales

Louisiana is classified as a Redemption Deed State. The municipal or parish tax collector oversees the sale which is an oral public auction. Tax deeds are sold with a 3 year right of redemption. Investors receive a rate of return of 1% per month, or 12% annually. Investors also receive a penalty rate of 5% upon redemption, making the annual rate a return of 17%. If the property owner does not pay all delinquent taxes, interest, penalties, and fees by the end of the 36 month period, the right to redeem the property will be forfeited.

Tax deeds are awarded to the investor who bids down to the lowest percentage of ownership in the property. Louisiana”s State statutes are based on a French law called the Napoleonic Code instead of the English common law used in almost every other state. Because of this difference, it can make the statutes difficult to understand and often confusing.

There is a 12% annual rate of return or a 1% per month return in Louisiana. The state also mandates a flat penalty rate of 5% due to the deed holder upon property redemption. The overall rate of return an investor receives is determined by the redemption date. A property redeemed after 1 month would yield an interest rate of 72% (1% + 5% penalty X 12 months), while a property that redeemed after 35 months would yield a return of 13.7%.

Louisiana uses a bid down ownership method. Investors compete by bidding down how much property ownership backs the redemption deed or tax lien. Using this system requires a lien holder to file a court action to prosecute the foreclosure in order to sell the property. The proceeds would then be divided based on the percentage of the ownership held.

Tax Sale Type: Hybrid Tax Deed (Sec. 47:2183).

Contact: (Sec. 47:2182).

Interest Rate and/or Penalty Rate: 12% per annum plus 5% penalty. (Sec 47:2224.).

Bid Procedure: Premium bid / highest bid.(Sec. 47:2183).

Redemption Period: Three (3) years. (Sec. 47:2183 (a)).

Law: Louisiana Constitution, Title 47, Subtitle III, Chapter 5, “Tax Sales and Redemptions.”
Record the Tax Deed. According to (Sec. 47:2183 (A)) the purchaser must file the deed ‘for record in the conveyance office in the parish in which the property is situated.‘ to begin the countdown of home owners three (3) year right to redeem.

Obtaining a writ of possession. Louisiana is unique in that the purchaser of the hybrid tax deed can request immediate possession of the property before the expiration of the home owners three (3) year right to redeem has expired.

Investment Type: Tax Deeds
Interest Rate: N/A
Bid Method: Premium
Redemption Period: N/A
Sale Date: June
Over-the-Counter Sales: Yes
State Website: http://www.michigan.gov/
State Statutes: http://www.legislature.mi.gov/(S(31thqnfiv3gn5gucwzcomuyp))/mileg.aspx?page=GetObject&objectname=mcl-chap211

In Michigan, the tax collector or treasurer will sell tax deeds to the winning bidders at the delinquent property tax sales.

Tax Sale Type: Tax Deed (Sec. 211.78m).
Contact: County Treasurer. (Sec. 211.78m).
Interest Rate and/or Penalty Rate: Not applicable.
Bid Procedure: Premium bid / highest bid. (Sec. 211.78m (2)).
Redemption Period: Not applicable.
Law: Michigan Compiled Laws, Chapter 211, Sec. 211.60 et seq., “Sale, Redemption, and Conveyance of Delinquent Tax Lands.”
Many of the counties in Michigan hold their tax deed sales through the company Title-Check, LLC. The website for information is http://www.tax-sale.info/, and the auctions actually happen on http://www.ebayliveauctions.com/
The counties that do not use Title-Check are the white, non-selectable counties on http://www.tax-sale.info/
The name of the Assessors office in MI is the “Equalization Office”, and the Assessed Value is referred to as the “State Equalized Value”
Generally the sales happen between July and November every year.
The county forecloses on the tax deed properties in March and April, so trying to purchase title from the previous owners cannot take place after that point, even though it may still be a few months before the auction.
Baraga County, Gogebic County, and Houghton County hold their auctions together each year in August.

Investment Type: Redeemable Tax Deed
Interest Rate: 16 percent
Bid Method: Varies by County
Redemption Period: 6 Months
Sale Date: http://www.mass.gov/legis/laws/mgl/gl-60-toc.htm
Over-the-Counter Sales: No
State Website: http://www.mass.gov/portal/
State Statutes: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter60

Summary: Tax sales in Massachusetts done via “taking” sales. The local tax collector oversees the tax sales. Tax deeds sold in Massachusetts are purchased with a six month right of redemption. A penalty rate of 16 percent is applied to the redemption of all tax deeds.

Detailed Description: If a tax bill or water/sewer bill is unpaid for more than 30 days, the collector mails a demand for payment to the last, best address for the taxpayer if the collector wants to enforce the lien or legal claim on the property. If payment is not made within 14 days, the collector can start the process for a tax taking.

If payment of real estate taxes or a water/sewer bill is not made within 14 days, the collector gives notice in a local newspaper of the intention either to (1) sell the tax title to the property by public auction or (2) take the tax title to the property. Notice is also posted in 2 or more public places (examples city or town hall, library, etc.). For a general example, see attached sample newspaper Notice of Assignment and sample pre-sale Notice of Assignment to owners. Outstanding bills gain interest at a rate of 14% annually. Notice has to be provided 14 days before the sale or taking.

If the city or town takes the property by way of a tax taking, the collector records an Instrument of Taking. If the collector sells the property by way of a tax sale to a private party, the collector records a Collector’s Deed.

Once the taking or Collector’s Deed is made, the account is transferred from the collector to the treasurer or held by a private party. Simple interest then builds up at a rate of 16% annually.

If a foreclosure case has been filed, but the court has not yet issued a finding stating the redemption amount, the taxpayer and the plaintiff might agree on the redemption amount themselves; or, the court will have set the redemption amount at the finding hearing. Either way, if a taxpayer redeems at any time after a foreclosure case was filed but before the court enters a judgment of foreclosure, the plaintiff must file a Motion to Withdraw Complaint to Foreclose Rights of Redemption with the court so that the case can be closed. The court then will allow this Motion and provide an attested (authenticated) copy of the Withdrawal to the plaintiff’s counsel for filing with the registry of deeds in the county where the land is located. A Certificate of Redemption from the municipal treasurer or a Deed of Release from the private party will also be issued to whoever paid the tax.

MARYLAND

Investment Type: Tax Liens
Interest Rate: 20% – 24% (Varies by County)
Bid Method: Premium
Redemption Period: 6 Months
Sale Date: Year Round
Over-the-Counter Sales: Yes
State Website: http://www.maryland.gov/Pages/default.aspx
State Statutes: http://law.justia.com/codes/maryland/2010/tax-property/title-14/subtitle-8/#http://law.justia.com/codes/maryland/2010/tax-property/title-14/subtitle-8/14-808/

Maryland utilizes a tax lien certificate system to collect delinquent property taxes. Tax sale dates are determined and vary by individual counties. Sales are published in the local newspaper and is circulated for 4 successive weeks. Registration rules vary per county, but most usually allow bidders to register on the day of the tax sale. Tax sales are conducted through an oral bid system. One advantage found in Maryland is the system used to collect payment from investors. The minimum bid amount which is all back taxes, penalties, and fees is due immediately, but the premium or overbid is only required when the investor files for foreclosure. This means if the property is redeemed, the investor never pays the overbid or surplus.

The rate of return in Maryland varies from 6% – 24% depending on the county. Many counties also have penalty rates included the return which positively affect the overall rate of return. Penalty rates are a flat percentage of the investment and do not accrue with time and dramatically change the overall rate of return in the investors favor.

Maryland uses the Premium Bid method. The starting or minimum bid includes all back taxes, penalties, interest, and administrative costs. The lien will then be bid up in price until a high bid has been established. The highest bidder will receive the tax lien certificate to the property.

Maryland has no specific redemption period which investors can begin the pursue foreclosure anytime after 6 months from the auction date. However, if a foreclosure proceeding are not filed within 2 years of the sales date the certificate becomes void.

Tax Sale Type: Tax Lien Certificates (Sec. 14-820).

Contact: Tax Collector. (Sec. 14-808).

Interest Rate and/or Penalty Rate: 6% to 24% per annum. (Sec. 14-820).

Bid Procedure: Premium bid / highest bid. (Sec. 14-817 (a) (2)).

Redemption Period: 6 months. (Sec. 14-833).

Law: Annotated Code of Maryland, Tax-Property Article, Title 14, Subtitle 8, Part III, “Tax Sales.”

Property owner retains possession during redemption: According to (Sec. 14-830) the ‘owner of any property sold under the provisions of this subtitle shall have the right, during the period of redemption, to continue in possession of, and to exercise all rights of ownership over the property until the right of redemption has been finally foreclosed…‘

Attaining a Tax Deed: According to (Sec. 14-833) the owner of a tax lien certificate can file for a tax deed six (6) months after the purchase of the tax lien but no later than two (2) years from the date the tax lien certificate was purchased.

MAINE

Investment Type: Tax Deeds
Interest Rate: N/A
Bid Method: Premium
Redemption Period: N/A
Sale Date: Year Round
Over-the-Counter Sales: No
State Website: http://www.maine.gov/portal/index.html
State Statutes: https://mainelegislature.org/legis/statutes/36/title36ch105sec0.html#36%20%C2%A71071.%20Collector’s%20tax%20auction%20sale;%20notice;%20procedure

In Maine, the tax collector will sell tax deeds to the winning bidders at the delinquent property tax sales.

Tax Sale Type: Tax Deed. (Sec. 1071).
Contact: Municipal Tax Collector. (Sec. 1074).
Interest Rate and/or Penalty Rate: Not applicable.
Bid Procedure: Premium bid / highest bid. (Sec. 1074).
Redemption Period: Not applicable.
Law: Maine Revised Statutes, Title 36, Part 2, Chapter 105, Subchapter IX, “Delinquent Taxes.”

Investment Type: Tax Deed
Interest Rate: N/A
Redemption Period: N/A
Sale Date: Varies
Over-the-Counter Sales: No
State Website: https://mn.gov/portal/
State Statutes: https://www.revisor.mn.gov/statutes/cite/282.01

In Minnesota, any unpaid property taxes and penalties become delinquent on the first business day in January after the year when the taxes and penalties are due. Also on this date, the county treasurer returns to the county auditor the county property tax lists for all real property taxes payable in the previous year. (Minn. Stat. § 279.02). Then, on or before February 15th, the county auditor will file a delinquent tax list with the district court. (Minn. Stat. § 279.05).

The court will enter a tax judgment against the parcels on the list for the delinquent amounts due, so long as no objections are made. (Minn. Stat. § 279.16, § 279.15).

Next, on the second Monday in May, the auditor will “bid in for the state” the amount of all delinquent taxes, penalties, costs, and interest due, which basically sells the property to the state in a tax judgment sale. (Minn. Stat. § 280.01, § 280.43). The state then gets an interest in each tax-delinquent property, subject to the redemption period.

If the property owner doesn’t pay the delinquent amounts during the redemption period, the property is forfeited to the state. (Minn. Stat. § 280.41). After the forfeiture, the state may, among other options, sell the property at a public auction to the highest bidder. (Minn. Stat. § 282.01).

MISSOURI

Investment Type: Tax Liens
Interest Rate: 10 percent
Bid Method: Premium
Redemption Period: 2 Years
Sale Date: Year Round
Over-the-Counter Sales: Yes
State Website: http://www.mo.gov/
State Statutes: http://www.moga.mo.gov/mostatutes/chapters/chapText140.html

In Missouri, county treasurer’s and tax collector’s sell tax lien certificates to the winning bidder at the delinquent property tax lien sales.

Tax Sale Type: Tax Lien Certificate (Sec. 140.290).
Contact: Tax Collector. (Sec. 140.010).
Interest Rate and/or Penalty Rate: 10% per annum (8% on subsequent taxes). (Sec. 140.340).
Bid Procedure: Premium bid / highest bid. (Sec. 140.190 Sec. 140.250).
Redemption Period: One (1) year. (Sec. 140.330).
Law: Missouri Revised Statutes, Chapter 140, “Collection of Delinquent Taxes Generally,” and Chapter 141, “Delinquent Taxes — First Class Counties and St. Louis City.”
Charter Counties. According to (Sec. 18 (a)) of the Missouri Constitution any ‘county having more than 85,000 inhabitants, according to the census of the United States, may frame and adopt and amend a charter for its own government’.

In addition, counties ‘which adopt or which have adopted a charter or constitutional form of government shall be a separate class of counties outside of the classification system established under section 8 of this article’.

In conclusion, any county with a population of 85,000 or more may adopt a different process for the collection of delinquent property taxes. Therefore, prior to purchase, contact county officials for the specifics on how delinquent property taxes are handled in that specific county.

Sale to Non-Residents According to (Sec. 140.190) no ‘bid shall be received from any person not a resident of the state of Missouri until such person shall file with said collector an agreement in writing consenting to the jurisdiction of the circuit court of the county in which such sale shall be made, and also filing with such collector an appointment of some citizen of said county as agent of said purchaser, and consenting that service of process on such agent shall give such court jurisdiction to try and determine any suit growing out of or connected with such sale for taxes’.

Subsequent Taxes. According to (Sec. 140.440) the purchaser of the tax lien certificate must pay all subsequent taxes ‘that have accrued thereon since the issuance of said certificate’ before ‘being entitled to apply for deed’.

Furthermore, ‘any purchaser that shall suffer a subsequent tax to become delinquent, such first purchaser shall forfeit all liens on such lands so purchased.’

A purchaser that permits ‘a subsequent certificate to issue on the same property’ will receive a notice instructing the investor to ‘surrender said certificate’ to the county tax collector. At that point the investor will receive what he or she paid to purchase ‘shall be paid without interest to such holder of the certificate’.

Applying for Tax Deed. According to (Sec. 140.410) the purchaser must apply for a tax deed ‘within two years from the date of said sale’ of the tax lien certificate. Failure by the purchaser to apply for a tax deed within the time specified in Sec. 140.410 ‘the amount due such purchaser shall cease to be a lien on said lands so purchased so purchased as herein provided’.

Investment Type: Tax Liens
Interest Rate: 18 percent
Bid Method: Premium Bid
Redemption Period: 2 years
Sale Date: Last Monday of August
Over-the-Counter Sales: Yes
State Website: https://www.sos.ms.gov/
State Statutes: https://advance.lexis.com/container?config=00JAAzNzhjOTYxNC0wZjRkLTQzNzAtYjJlYS1jNjExZWYxZGFhMGYKAFBvZENhdGFsb2cMlW40w5iIH7toHnTBIEP0&crid=02dd25d5-cad5-4082-8282-60875ec94d89&prid=6c37a773-5f78-42f2-9a8e-d6ded7f5097e

Mississippi Tax Deed Sales

Mississippi also conducts tax deed sales through its over-the-counter process.

Bidding Process

All tax lien auctions are by competitive bid using an overbid system. The amount of the overbid is not reimbursed and interest is not earned on the overbid amount.

MONTANA

Investment Type: Tax Liens
Interest Rate: 10 percent
Bid Method: Premium
Redemption Period: 3 Years
Sale Date: July
Over-the-Counter Sales: No
State Website: http://mt.gov/
State Statutes: http://leg.mt.gov/bills/mca_toc/15_17.htm

In Montana, county treasurer’s and tax collector’s sell tax lien certificates to the winning bidder at the delinquent property tax lien sales.

Tax Sale Type: Tax Lien Certificate (Sec. 15-17-212).
Contact: County Treasurer. (Sec. 15-17-211).
Interest Rate and/or Penalty Rate: 10% per annum. (Sec. 15-16-102).
Bid Procedure: Premium bid / highest bid. (Sec. 15-17-214).
Redemption Period: Two (2) or three (3) years. (Sec. 15-18-111).
Law: Montana Code Annotated, Title 15, Chapter 17, “Tax Sales,” and Chapter 18, “Ownership Interests in Land Sold for Taxes.”
Proof of Notice: According to (Sec. 15-18-212) ‘not more than 60 days prior to and not more than 60 days following the expiration of the redemption period…’ the purchaser or assignee ‘shall notify all persons considered interested parties in the property, if any, that a tax deed will be issued to the purchaser or assignee unless the property tax lien is redeemed prior to the expiration date of the redemption period…’.

If the purchaser or assignee fails to notify all persons considered interested parties in the property as defined in Sec. 15-18-212 ‘the county treasurer shall cancel the property tax lien evidenced by the tax lien sale certificate…’.

NORTH CAROLINA

Investment Type: Tax Deeds
Interest Rate: N/A
Bid Method: Premium
Redemption Period: N/A
Sale Date: Year Round
Over-the-Counter Sales: Yes
State Website: http://www.ncgov.com/
State Statutes: http://www.ncga.state.nc.us/EnactedLegislation/Statutes/HTML/ByArticle/Chapter_105/Article_26.html

100 County Tax Departments/Tax Department Offices/Tax Offices/Tax Collections Offices and Tax Collectors and 267 municipal (City or Town) Tax Collectors.

In North Carolina, the tax collector or treasurer will sell tax deeds to the winning bidders at the delinquent property tax sales.

Tax Sale Type: Tax Deed (Sec. 105-374 (p)).
Contact: Tax Collectors (Sec. 105-350).
Interest Rate and/or Penalty Rate: Not applicable
Bid Procedure: Premium bid / highest bid. (Sec. 105-374 (m)).
Redemption Period: Not applicable.
Law: General Statutes of North Carolina, Chapter 105, Subchapter II, Article 26, “Collection and Foreclosure of Taxes.”

Upset bids: According to (Sec. 1-339.64) a bidder may ‘increase the bid‘ by increasing the bid by ‘(5%)‘ and ‘with a minimum increase of seven hundred fifty dollars ($750.00).‘. Once the upset bid has been recorded, the clerk of the superior court will release the prior sale.

Auctions through Ruff, Bond, Cobb, Wade & Bethune, L.L.P.: http://rbcwb.com/
Auctions through The Kania Law Firm: http://kanialawfirm.com/

NORTH DAKOTA

*Not currently selling

NEBRASKA

Investment Type: Tax Liens
Interest Rate: Rotational
Bid Method: Rotational
Redemption Period: 3 Years
Sale Date: 1st Monday of March
Over-the-Counter Sales: Yes
State Website: http://www.nebraska.gov/
State Statutes: http://nebraskalegislature.gov/laws/browse-chapters.php?chapter=77

Nebraska counties hold their tax lien auctions annually on the first Monday of March. These tax sales are usually directed by the treasurer at the county courthouse or similar facility. Nebraska counties also work similarly to Iowa counties when it comes to the bid method. According to state law they have a “bid down the ownership” method; however, many of the counties choose to do a random selection or rotational method.

In Nebraska, county treasurer’s and tax collector’s sell tax lien certificates to the winning bidder at the delinquent property tax sale.

Tax Sale Type: Tax Lien Certificate. (Sec. 77-1818).
Contact: The County Treasurer. (Sec. 77-1802).
Interest Rate and/or Penalty Rate: 14% per annum. (Sec. 77-1824 and Sec. 45-104.01 ).
Bid Procedure: Bid down ownership interest. (Sec. 77-1807).
Redemption Period: Three (3) years. (Sec. 77-1837).
Law: Nebraska Revised Statutes, Chapter 77, Article 18, “Collection of Delinquent Real Estate Taxes by Sale of Real Estate,” and Article 19 “Collection of Delinquent Real Estate Taxes Through Court Proceedings.”
Life of a lien for this state is 3 years and 9 months.

NEW HAMPSHIRE

*Currently not selling

NEW JERSEY

Investment Type: Tax Liens
Interest Rate: 18 percent
Bid Method: Bid Down the Interest Rate
Redemption Period: 2 Years
Sale Date: Varies by County
Over-the-Counter Sales: No
State Website: http://www.state.nj.us/
State Statutes: http://lis.njleg.state.nj.us/cgi-bin/om_isapi.dll?clientID=100346210&Depth=2&depth=2&expandheadings=on&headingswithhits=on&hitsperheading=on&infobase=statutes.nfo&record=&softpage=Doc_Frame_PG42

New Jersey law requires all 566 municipalities to hold at least one tax sale per year if the municipality has delinquent property taxes and/or municipal charges. You can obtain information on upcoming tax sales by contacting the tax collector in the municipality in question, or from the web site of the Tax Collectors & Treasurers Association of New Jersey: www.tctanj.org/taxsale.html.

In New Jersey, county treasurer’s and tax collector’s sell tax lien certificates to the winning bidder at the delinquent property tax sale.

Tax Sale Type: Tax Lien Certificates (Sec. 54:5-46).
Contact: Tax Collector. (Sec. 54:5-19).
Interest Rate and/or Penalty Rate: 18% per annum and 4% – 6% penalty. (Sec. 54:5-61 and (Sec. 54:5-32 ).
Bid Procedure: Bid down interest rate or premium bid / highest bid. (Sec. 54:5-32).
Redemption Period: Two (2) years. (Sec. 54:5-86).
Law: New Jersey Revised Statutes, Title 54, Subtitle 2, Chapter 5, “Tax Sale Law.”
Amount to Redeem: According to (Sec. 54:5-32) the ‘sale shall be made in fee to such person as will purchase the property, subject to redemption at the lowest rate of interest, but in no case in excess of 18% per annum. If at the sale a person shall offer to purchase subject to redemption at a rate of interest less than 1%, he may, in lieu of any rate of interest to redeem, offer a premium over and above the amount of taxes, assessments or other charges, as in this chapter specified, due the municipality, and the property shall be struck off and sold to the bidder who offers to pay the amount of such taxes, assessments or charges, plus the highest amount of premium…’.

In addition, according to (Sec. 54:5-32) When the tax title certificate amount shall exceed the sum of $5,000, such additional sum shall be equal to 4% of such amount paid; and when the tax title certificate amount exceeds $10,000, such additional sum shall be equal to 6% of such amount paid. This section shall also apply to all existing tax title certificates held by municipalities on the effective date of P.L.1991, c.75.

NEW MEXICO

Investment Type: Tax Deeds
Interest Rate: N/A
Bid Method: Premium
Redemption Period: N/A
Sale Date: Year Round
Over-the-Counter Sales: No
State Website: http://www.newmexico.gov/
State Statutes: http://law.justia.com/codes/new-mexico/2011/chapter7/article38/

Tax Sales are handled by the state in New Mexico. After three years of delinquency, the county treasurer passes the property account over to the state for delinquent real property tax collection.

With the state being the one handling the sale, very few county treasurers have tax sale data available online. Use the link above to check the State Property Tax Division first and foremost.
In New Mexico, the tax collector or treasurer will sell tax deeds to the winning bidders at the delinquent property tax sale.

Tax Sale Type: Tax Deed. (Sec. 7-38-70a ).

Contact: County Assessor-Collector. (Sec. 7-38-62 ).

Interest Rate and/or Penalty Rate: Not applicable.

Bid Procedure: Premium bid / highest bid. (Sec. 7-38-67 ).

Redemption Period: Not applicable.

Law: New Mexico Statutes, Chapter 7, Article 38, “Administration and Enforcement of Property Taxes.”

Additional Notes:
Important According to (Sec. 7-1-49 ) when an investor purchase a property at a New Mexico Tax Deed Sale the investor takes it ‘subject to all outstanding prior interests and encumbrances (i.e., mortgages) of record‘.

NEVADA

Investment Type: Tax Deeds
Interest Rate: N/A
Bid Method: Premium
Redemption Period: N/A
Sale Date: Year Round
Over-the-Counter Sales: No
State Website: http://nv.gov/
State Statutes: http://www.leg.state.nv.us/NRS/NRS-361.html

In Nevada, county treasurers sell tax deeds to the winning bidders at the delinquent tax deed sales.

Tax Sale Type: Tax Deed (Sec. 361.595 (4)).
Contact: County Treasurer. (Sec. 361.595).
Interest Rate and/or Penalty Rate: Not applicable.
Bid Procedure: Premium bid / highest bid. (Sec. 361.595 (2)).
Redemption Period: Not applicable.
Law: Nevada Revised Statutes, Chapter 361, “Property Tax.”
Clark County is an exception to the state’s rules. Tax lien certificates are offered in Clark County at 12% APR (Las Vegas).

NEW YORK

Investment Type: Tax Deeds
Interest Rate: N/A
Bid Method: Premium
Redemption Period: N/A
Sale Date: Year Round
Over-the-Counter Sales: Yes
State Website: http://www.ny.gov/
State Statutes: http://codes.findlaw.com/ny/real-property-tax-law/rpt-sect-1190.html

GIS and mapping data – This state site is a very good resource to find state, county, and other municipal GIS systems.

The five counties of New York City were incorporated together as boroughs in 1898, as follows:
– Manhattan, New York County
– Queens, Queens County
– Brooklyn, Kings County
– Bronx, Bronx County
– Staton Island, Richmond County

Obtaining county records has been made easier because of “FOIL”, a Freedom of Information Law that requires all of the government agencies to disclose and provide records free of hassle and real cost. This means parcel maps, title history, relevant property data is available through a quick email.
This Allegany County deed recording page is a great resource for instructions on recording deeds in New York.

In the state of New York, each deed must be accompanied by a Real Property Transfer Report.
In New York, the tax collector or treasurer will sell tax deeds to the winning bidders at the delinquent property tax sale.

Tax Sale Type: Tax Deed (Sec. 1166 (1)).
Contact: Tax Collector. (Sec. 1102).
Interest Rate and/or Penalty Rate: Not applicable.
Bid Procedure: Premium bid / highest bid. (Sec. 1102 (3)).
Redemption Period: Not applicable.
Law: New York Real Property Tax Law, Chapter 50-a, Article 11, “PROCEDURES FOR ENFORCEMENT OF COLLECTION OF DELINQUENT TAXES”

New York City’s Tax Lien Certificates Sale: The city of New York holds an annual tax lien sale, the winning bidder will receive a tax lien certificate.

The New York City Department of Finance (DOF) holds a tax lien sale, through which the tax liens on properties for unpaid property taxes and water bills are sold off in an auction. The terms imposed by the tax lien sale on New Yorkers are a mandatory five percent surcharge, legal fees, and a nine or 18 percent interest rate that compounds daily.

OHIO

Investment Type: Tax Liens
Interest Rate: 18 percent
Bid Method: Premium by RFP
Redemption Period: 1 Year
Sale Date: Year Round
Over-the-Counter Sales: No
State Website: http://www.ohio.gov/
State Statutes: http://codes.ohio.gov/orc/5721

Ohio is a hybrid state because some counties hold tax lien sales, and many others hold tax deed foreclosure auctions. Counties with a high enough population are ‘allowed’ to sell tax lien certificates, while the remainder of counties are limited to tax deeds. Bulk tax lien certificate auctions in Ohio happen once a year.

Starting bid of tax deed properties will be at least two thirds of the property value. Still a great deal, of course with tax sales we can be picky when we want to, right?

The tax deed foreclosure auctions in Ohio counties are lumped in with the sheriff sales. It is not uncommon to see sheriff sales happening every week in many of the deed counties of Ohio. Many of these sheriff sales will include at least a few tax foreclosure properties mingled in with all the other mortgage foreclosure properties. Some lists specify which properties belong to which group, some lists don’t.

Look for lien certificate auctions in Franklin County (Columbus), Cuyahoga County (Cleveland), and Hamilton County (Cincinnati).

Ohio is unique in that it offers both tax lien certificates and tax deeds. For tax lien certificates, investors can get yields as high as 18% per annum with a one year right of redemption. Tax Deeds are sold to the bidder with the highest bid.

Tax Sale Type: Tax Deed Sale (Sec. 5721.19) and Tax Lien Certificates (see notes) (Sec. 5721.31).
Contact: The County Treasurer. (Sec. 5721.31).
Interest Rate and/or Penalty Rate: 18% per annum (for tax lien certificates). (Sec. 5721.32 (C)).
Bid Procedure: Premium bid / highest bid (tax deeds). (Sec. 5721.19). Bid down interest rate (tax lien certificates). (Sec. 5721.32 (C)).
Redemption Period: One (1) year. (Sec. 5721.37 (A)(1)).
Law: Ohio Revised Code, Title 57, Chapter 5721, “Delinquent Lands,” and Chapter 5723, “Forfeited Lands.”
Tax Lien Certificate Sales: According to (Sec. 5721.31) ‘Counties having a population of at least 200,000, may collect delinquent taxes by selling tax lien certificates at public auction‘.

OKLAHOMA

Investment Type: Tax Deeds
Interest Rate: N/A
Bid Method: Premium
Redemption Period: N/A
Sale Date: June
Over-the-Counter Sales: Yes
State Website: https://www.ok.gov/
State Statutes: http://www.oscn.net/applications/OCISWeb/index.asp?level=1&ftdb=STOKST68#Article31-CollectionofDelinquentTaxes

Oklahoma county treasurer’s and tax collector’s sell tax lien certificates to the winning bidder at the delinquent property tax sale. In addition, Oklahoma sells tax deeds.

Tax Sale Type: Tax Lien Certificate (68-3111) and Tax Deed (68-3135).
Contact: The County Treasurer. (Sec. 68-3108 (A)).
Interest Rate and/or Penalty Rate: 8% per annum. (Sec. 68-3113).
Bid Procedure: Random selection or ‘impartial drawing’. (Sec. 68-3108 (A)).
Redemption Period: Two (2) years. (Sec. 68-3117 (b)).
Law: Title 68, Article 31, “Delinquent Taxes and Collection.”

Multiple Tax Sales: As far as Oklahoma is concerned, at 8% per annum it doesn’t provide the biggest rate of return. However, it does keep the competition down.

The Oklahoma tax sale process can be a bit confusing. First you should know that Oklahoma has three tax sales; tax sales, resales, and county commissioner’s sales.

The “Tax Sale” is held each year on the first Monday in October (Sec. 68-3107). The winning bidder receives a tax lien certificate which draws interest at 8% per annum subject to a 2 year redemption period.

Any tax lien not sold at the “Tax Sale” is assigned to the county and can be purchased over the counter anytime prior to the expiration of the 2 year redemption period (Sec. 68-3108).

The “Resale” or second buying opportunity includes properties which remain unredeemed for a period of two years from the date of the sale…” (Sec. 68-3125) and occurs the second Monday of June each year. The winning bidder will receive a treasurers or tax deed. Any property not sold at the “Resale” will be struck off to the county.

The “County Commissioners Sale” or third buying opportunity includes properties not sold at either the “tax sale” or the “resale”. At the county commissioner sale “Properties are sold by the treasurer at a price approved by the county commissioners” (Sec. 68-3135).

OREGON

Investment Type: Tax Deeds
Interest Rate: N/A
Bid Method: Premium by Lottery
Redemption Period: Varies by County
Sale Date: Year Round
Over-the-Counter Sales: Yes
State Website: http://oregon.gov/
State Statutes: http://www.oregonlaws.org/ors/volume/3

Oregon has a strong GIS presence. If the state interactive map doesn’t have a parcels layer for the county, it will provide a link to the county’s GIS.
Click here to read the policies governing real property tax foreclosure in Oregon.

In Oregon, the tax collector or treasurer will sell tax deeds to the winning bidders at the delinquent property tax sale. The bidder willing to pay the most wins the bidding contest. Oregon is unique in that state statues have provisions for financing purchasers.

Tax Sale Type: Tax Deed (Sec. 29-312.270).
Contact: (Sec. 29-311.005).
Interest Rate and/or Penalty Rate: Not applicable.
Bid Procedure: (Sec. 25-275.190).
Redemption Period: Not applicable.
Law: Oregon Revised Statutes, Title 25, Chapter 275 – “County Lands”,Title 29, Chapter 311 – “Collection of Property Taxes” and Title 29, Chapter 312 – “Foreclosure of Property Tax Liens”.

PENNSYLVANIA

Investment Type: Tax Deeds
Interest Rate: N/A
Bid Method: Premium
Redemption Period: N/A
Sale Date: Varies by County
Over-the-Counter Sales: Yes
State Website: http://www.pa.gov/
State Statutes: http://www.legis.state.pa.us/cfdocs/legis/CH/PUBLIC/cons_view_affecting.cfm?ttl_id=72

Delinquent tax foreclosure properties are typically handled by the Tax Claim Bureau department within each Pennsylvania county. The county will hold two tax sales to try and sell tax delinquent real property. First, at the Upset Sale, then at the Judicial Sale where tax liens are wiped out. If a property goes unsold at both tax sales, it will go onto the ‘Repository’ list and will be available during much of the year for over-the-counter purchase via mail-in offer process. Some counties will also hold a third auction; a repository sale consisting of previously unsold properties.

In Pennsylvania, the tax collector or treasurer will sell tax deeds to the winning bidders at the delinquent property tax sale. The bidder willing to pay the most wins the bidding contest.

Tax Sale Type: Tax Deed (see notes).
Contact: County Tax Claim Bureau
Interest Rate and/or Penalty Rate: Not applicable.
Bid Procedure: Premium bid / highest bid.
Redemption Period: Not applicable.
Law: Pennsylvania “Real Estate Tax Sale Law” Act 542 of 1947, P.L. 1368; 72 P.S. 5860.101
In accordance with the Tax Sale law, the municipal Tax Claim Bureau is able to sell parcels in one of four ways (Article VI. Sale of Property.); (a) Upset Sale (Sec 601 – 609), (b) Judicial Sale (Sec 610 – 612.2), (c) Private Sale (Sec 613 – 615), and (f) Repository for Unsold Property (Sec 625 – 630).

The Upset Sale is scheduled each September and includes those parcels whose taxes, from two years earlier, remain unpaid or other specified conditions exist.

A Private Sale can occur after a property has been exposed but not sold at an Upset Sale. An interested buyer submits a written bid to the Tax Claim Bureau. The Bureau decides whether to accept the bid. If accepted, the bid is advertised in a newspaper. Any one objecting to the sale must petition the court within 45 days to disprove the sale.

A Judicial Sale is held at least once each year and can include only those properties that have been exposed but not sold at an Upset Sale. After advertisement, notice to owners and lien holders, etc., the parcels are presented free and clear of all liens.

A Repository Sale consists of properties that are exposed but not sold at a Judicial Sale. Any bid on a repository property must be approved by all taxing districts where the property is located (i.e. township borough, county, school).

Special sales and redemption provisions apply in Philadelphia, Pittsburgh, and Scranton and in Allegheny County.

RHODE ISLAND

Investment Type: Redemption Deeds
Interest Rate: 1% per Month + 10% Penalty
Bid Method: Premium
Redemption Period: 1 Year
Sale Date: Year Round
Over-the-Counter Sales: No
State Website: https://www.ri.gov/
State Statutes: http://webserver.rilin.state.ri.us/Statutes/TITLE44/44-9/INDEX.HTM

In Rhode Island, tax collector’s sell tax deeds (hybrid tax deed) with a 1 year right of redemption. The original owner may redeem by paying the purchase price plus a 10% penalty plus 1% per month after 6 months.

Tax Sale Type: Hybrid Tax Deed. (Sec. 44-9-12).
Contact: Tax Collector. (Sec. 44-9-7).
Interest Rate and/or Penalty Rate: Ten (10%) penalty if redeemed within six (6) months of the date of sale, and an additional one (1%) percent penalty for each succeeding month. (Sec. 44-9-19) and (Sec. 44-9-21).
Bid Procedure: Premium bid / highest bid. (Sec. 44-9-8).
Redemption Period: One (1) year. (Sec. 44-9-25).
Law: General Laws of Rhode Island, Title 44, Chapter 9 – “Tax Sales”.

SOUTH CAROLINA

Investment Type: Tax Liens
Interest Rate: 3% – 12% APR
Bid Method: Premium
Redemption Period: 12 – 18 Months
Sale Date: Fall
Over-the-Counter Sales: No
State Website: http://www.sc.gov/
State Statutes: http://www.scstatehouse.gov/code/title12.php

There are 46 County Delinquent Tax Collectors (often referred to as simply the Tax Collector) or, if there is no such office, refer to the County Treasurer.
Note: In most Counties, the Treasurer collects only current real property taxes and the County Delinquent Tax Collector (or Tax Collector) collects only delinquent real property taxes and conducts the annual tax sales.
In South Carolina, tax collector’s sell tax lien certificates to the winning bidders at the delinquent property tax sales. The winning bidder is the one willing to pay the most for the tax lien certificate.

The homeowner has approximately one (1) year from the date the tax lien certificate was purchased to redeem. Depending on when the homeowner redeems he or she will be charged a 3% to 12% penalty. Upon the expiration of the one (1) year redemption the investor may apply for the tax deed.

Tax Sale Type: Tax Lien Certificates. (Sec. 12-51-130).

Contact: Tax Collector. (Sec. 12-51-60).

Interest Rate and/or Penalty Rate: Depending on the month of redemption 3% to 12% penalty (see “Additional Notes”). (Sec. 12-51-90).

Bid Procedure: Premium bid / highest bid. (Sec. 12-51-55).

Redemption Period: One (1) year. (Sec. 12-51-90).

Law: Code of Laws of South Carolina, Title 12, Chapter 51 – “Alternate Procedure for Collection of Property Taxes”.

Additional Notes:
Penalty due at Redemption: According to (Sec. 12-51-90) ‘the defaulting taxpayer, …may within twelve months from the date of the delinquent tax sale redeem each item of real estate by paying to the person officially charged with the collection of delinquent taxes, assessments, penalties, and costs, together with interest…‘

According to (Sec. 12-51-90 (B)) the amount charged to redeem is based on the month during the redemption period that the property is redeemed;

First three months (3%) percent of the bid amount
Months four, five, and six (6%) percent of the bid amount
Months seven, eight, and nine (9%) percent of the bid amount
Last three months (12%) percent of the bid amount
According to (Sec. 12-51-100) ‘Upon the real estate being redeemed,…The successful purchaser, at the delinquent tax sale, shall promptly be notified by mail to return the tax sale receipt to the person officially charged with the collection of delinquent taxes in order to be expeditiously refunded the purchase price plus the interest provided in Section 12-51-90‘.

According to (Sec. 12-51-130) upon ‘failure of the defaulting taxpayer,… to redeem realty within the time period allowed for redemption, the person officially charged with the collection of delinquent taxes, within thirty days or as soon after that as possible, shall make a tax title to the purchaser or the purchaser’s assignee‘.

SOUTH DAKOTA

*Currently not selling

TENNESSEE

Investment Type: Redemption Deeds
Interest Rate: 10 percent
Bid Method: Premium
Redemption Period: 1 Year
Sale Date: Varies by County
Over-the-Counter Sales: Yes
State Website: http://www.tennessee.gov/
State Statutes: http://law.justia.com/codes/tennessee/2010/title-67

Tennessee is a state that is a little different than most deed states because it is a redeemable deed state. One thing that an investor can do once he has won the Tennessee tax deed is to apply for an immediate writ of possession. If the writ is approved, the tax deed purchaser can collect rent on the property for the first year or until the deed is redeemed. This has been proven to be a very lucrative action. There is a one year redemption period for the State of Tennesee.

This annual 10 percent interest rate is simple interest. The 10 percent interest rate is added to any surplus or overbid along with the full amount of the tax deed price paid by the investor.

The highest bidder is the one that is willing to pay the most for each of the tax deeds. All fees, penalties, and administrative costs are included with the opening bid.

The tax deed buyer can take possession to the tax deed one year after the winning bid.

TEXAS

Investment Type: Redemption Deeds
Interest Rate: 25% Penalty each Year
Bid Method: Premium
Redemption Period: 6 – 18 Months
Sale Date: 1st Tuesday of Each Month
Over-the-Counter Sales: Yes
State Website: http://www.texas.gov/en/Pages/default.aspx
State Statutes: http://law.onecle.com/texas/tax/chapter34.html

Texas is a popular state because as they say “everything is bigger in Texas.” Texas offers one of the highest, if not the highest, interest rates available of all 50 states. After the first year you may make a total of 50% penalty interest on your investment (25% the first year and another 25% penalty the second year). Many of the counties in Texas use law firms to handle their back taxes and sale of redeemable tax deeds. You can find the main law firms that handle Texas here:

Perdue Brandon Fielder Collins & Mott LLP, Attorneys at Law www.pbfcm.com
Linebarger Goggan Blair & Sampson, LLP, Attorneys at Law www.publicans.com
McCreary, Veselka, Bragg & Allen, P.C., Attorneys at Law www.mvbalaw.com
Linebarger Attorneys at Law www.lgbs.com
For any county that does not use a law firm, check with the tax collector department for that county.

UTAH

Investment Type: Tax Deeds
Interest Rate: N/A
Bid Method: Premium
Redemption Period: N/A
Sale Date: May
Over-the-Counter Sales: Yes
State Website: http://www.utah.gov/index.html
State Statutes: https://le.utah.gov/xcode/Title59/Chapter2/59-2-P13.html?v=C59-2-P13_1800010118000101

All of the counties in Utah have their tax deed sales on the same day at the same time. Therefore it is a good idea to decide which county you want to work in or have some assistants to help you with more than one sale. Once a deed is purchased from the sale, it takes approximately 30 days for the county to send you the tax deed. All tax deed properties must be paid for at time of purchase. Some counties will allow you enough time to go to your bank if it is within an hour’s time. Only cash, cashier’s check or certified funds are accepted. Once a property has gone through the tax deed sale and did not sell, an investor can contact the county to purchase a property for the opening bid price. The county will sell a property after it has been delinquent for five years. The property owner has up until the auction starts to pay off his or her back taxes, penalties, and fees. The county will also list the tax deed properties in a local newspaper about four weeks prior to the sale. Auctions are conducted at the county courthouse.

Utah is an “Oral Bid,” and all participants must register prior to the sale. This can be done on the day of the sale. The most common method is the Premium Bid. The starting bid will include the back taxes, penalties, interest and any administrative costs. The property will go to the highest bidder. The second type of bidding is is the “Bid Down % of Ownership” method. The opening bid will include the back taxes, penalties, interest, and any administrative costs. The investors will bid down the ownership of the property starting at 100% of the property value. This then becomes a partnership with the previous property owner. The person willing to take the lowest percentage of ownership on that particular tax deed will be the winning bidder. http://www.utahlegalnotices.com/ is a great website to find listings of Utah tax deed properties. However, all of the sales will be announced at least three weeks prior to the sale in the local newspaper and on the county website. All Utah lists can be found on noriskinvestor.com in the Download Center at the start of May. The county Auditor conducts the sale. You can have someone bid in your stead with a notarized statement authorizing that person to bid for you.

VIRGINIA

Investment Type: Tax Deeds
Interest Rate: N/A
Bid Method: Premium
Redemption Period: N/A
Sale Date: Varies by County
Over-the-Counter Sales: No
State Website: https://www.virginia.gov/
State Statutes: http://law.lis.virginia.gov/vacodefull/title58.1/chapter32/article11/

On December 31st of each year, the county treasurer will begin the foreclosure proceedings on any property in which taxes are not paid by the end of two years after the property first becomes delinquent. The county treasurer will then take this list and send out certified letters to the last recorded address of the owner, and any other party that has financial interest in the property, letting them know that their property is delinquent. The county will then publish the delinquent list about three weeks prior to the tax deed sales in the local newspaper. The tax deed will be issued to the highest bidder winning the property at the auction.

Virginia is an oral bid state which uses the Premium Bid method. The starting minimum bid will begin with the amount owed in back taxes, along with penalties and any administrative cost incurred. Participants will need to register before the auction begins. The payment methods accepted are cash or certified checks. The property deed will be sent in the mail approximately one month after the auction is over.

VERMONT

Investment Type: Tax Liens
Interest Rate: 12 percent
Bid Method: Premium
Redemption Period: 2 Years
Sale Date: Varies by County
Over-the-Counter Sales: No
State Website: http://www.vermont.gov/portal/
State Statutes: http://legislature.vermont.gov/statutes/chapter/32/133

In Vermont, tax collector’s sell tax lien certificates to the winning bidders at the delinquent property tax sales. The winning bidder is the one willing to pay the most for the tax lien. Depending on when the homeowner redeems he or she will be charged a 12% penalty. Upon the expiration of the redemption period, which is 2 years, the investor may apply for the tax deed. The tax lien will remain in full force and effect for up to 15 years.

WASHINGTON

Investment Type: Tax Deeds
Interest Rate: N/A
Bid Method: Premium
Redemption Period: N/A
Sale Date: Winter
Over-the-Counter Sales: Yes
State Website: http://access.wa.gov/
State Statutes: http://apps.leg.wa.gov/rcw/default.aspx?Cite=84

After the counties have held onto tax lien certificates that have been delinquent for three years, they will hold a sale offering the tax deed at auction. The county will publish the list of tax deed properties in the local newspaper approximately three weeks prior to the sale. The property owner has until 5:00 pm the day before the auction to pay his or her back taxes, fees, and any penalties. This is what the starting bid will begin at also including any administrative costs. Some counties in Washington do have tax deed properties that are available after the tax sale. They are called “tax-title” properties and will be found under the real property division. Most of the tax-title properties are land. Washington does provide some funding in some of the counties. It will start at a 9.25% interest rate and can carry a contract for up to ten years for a $50,000 tax deed. Here are a few of the counties that have funding: Coos, Clackamus, and Deschutes. Quit claim deed forms can be found on www.vuwriter.co.

Washington is an oral bid state that uses the “Premium Bid” method. The tax deed will be bid up in price until a high bidder has been established. The starting bid will include all taxes, fees, administrative costs, and any penalties. Each bidder is required to register before the tax deed auction begins. It is possible for one to stand in another’s stead for bidding.You must contact the county and get a notarized statement giving permission for that person to represent you.

WISCONSIN

Investment Type: Tax Deeds
Interest Rate: N/A
Bid Method: Premium
Redemption Period: N/A
Sale Date: Year Round
Over-the-Counter Sales: Yes
State Website: http://www.wisconsin.gov/Pages/home.aspx
State Statutes: http://docs.legis.wisconsin.gov/statutes/statutes/75/521

Every year, in the first part of September, the county treasurer will issue tax lien certificates to the county on all over delinquent taxes. The county then keeps these tax liens for two years. After August 31st of the second year, any properties that the county is still holding will be foreclosed on by the county holding the tax lien. The county then becomes the new property owner. The county then holds a tax deed sale where the tax deeds are sold and transfer ownership to the highest bidder. The county then issues the winning bidder the tax deed to the property. This sale is usually known as the tax delinquent real estate sale. About six weeks prior to the sale the counties will publish the list of delinquent tax deed properties in the local newspaper. The property owner has up until 5:00 pm the day before the auction to pay all delinquent taxes, penalties, and fees.

The highest bidder will be awarded the tax deed. Some counties in Wisconsin also accept sealed bids. These bids are opened prior to the sale and will be bid appropriately (you will have to talk to the county to see if they are one that does if this is your preferred method of bidding). Prior to bidding, an investor is required to register. Some counties require a certain amount of time for pre-registration, so check with the county for details and time frames. You will then be issued a bidder’s number, which you will use during the tax deed auction. The county’s starting bid includes back taxes, penalties, interest, and any administrative costs incurred. This is called a “premium bid”. A sealed bid will be considered and must be submitted to the county the day prior to the sale. The investor must pick up the bidder’s form from the county along with their amount of the sealed bid and include it in an envelope. When submitted it then becomes a “sealed bid”.

WEST VIRGINIA

Investment Type: Tax Liens
Interest Rate: 12 percent
Bid Method: Premium
Redemption Period: 18 Months
Sale Date: July – September
Over-the-Counter Sales: Yes
State Website: http://www.wv.gov/Pages/default.aspx#home
State Statutes: http://www.legis.state.wv.us/WVCODE/Code.cfm?chap=11a&art=1

In West Virginia the Sheriff is responsible for the collection of back taxes. The Sheriff prepares a list of delinquent properties in the first two weeks of September. His responsibilities include conducting and overseeing the tax lien auction. All of the tax liens are sold to the highest bidder. All counties will publish their list in their local newspapers three to six weeks prior to the date of the auction. The starting bid begins with the back taxes, any penalties, and administrative fees included. The property owner has up to 5:00 pm the day before the sale to pay off all of his taxes, penalties, and fees. The highest bidder gets the tax lien certificate, but the amount of money that anyone bids past the amount that is owed does not accrue interest. So anything that is overbid does not accrue interest for the investor.

WYOMING

Investment Type: Tax Liens
Interest Rate: 15% APR + 3% Penalty
Bid Method: Random Selection
Redemption Period: 4 Years
Sale Date: Summer
Over-the-Counter Sales: No
State Website: http://wyoming.gov/
State Statutes: http://legisweb.state.wy.us/LSOWEB/SearchResults.aspx?cx=017715011151602216554:5hjhyhx9vlm&cof=FORID%3A11&ie=UTF-8&q=Title+39%2C+CH+13&sa=Search

The county sheriff prepares a list of tax delinquent properties for that year, and will then conduct the county auction. The purchaser will receive an interest rate of 15% annually, with a 3% penalty added to the original redemption amount for the first year. The sheriff will then send a certified letter to the last recorded address of the owner, and any other financially interested parties. They then have the right to come forth and pay off the taxes insuring you of your initial investment plus interest in return. The county publishes the tax sale list in a local newspaper (different newspapers for each county) three to six weeks prior to the tax lien sales. The property owner has up to the day before the auction to pay the delinquent taxes along with any penalties and fees that have been incurred. If the taxes go unpaid, the county will sell the tax lien certificate at the auction. If the property owner does not pay the next year’s taxes and you are the certificate owner, the county will send you a bill offering subsequent taxes to you; this allows you to be the owner of the next years tax lien also. The property owner has up to four years to redeem his or her property with each year accruing 15% interest. If it is not redeemed within the four years time allowed then the tax lien holders takes ownership of the property. This is done by filing for the deed which must be done no later than six years after the purchase of the tax lien. If there are more than one tax lien holder for the same piece of property, then the one filing for the deed must satisfy all other tax lien holders’ tax lien certificates. Wyoming has a smaller population than most places which makes it a good place to invest because there tends to be less competition.

Wyoming offers a 15% rate of return on Tax Lien Certificates. Investors are also guaranteed a 3% minimum return on properties that are redeemed within the first year. The primary bidding method used at Wyoming Tax Sales is rotational bidding. Each investor’s name is place in a pot; after which all names are randomly chosen. When an investor’s name is chosen he or she can purchase the tax lien certificate or pass.