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Real Estate Tax

Tax Certificates

Property taxes become delinquent if not paid by April 1 of the following year.  During the month of May, the Tax Collector is required to advertise a listing of all delinquent property taxes in the newspaper and online.  On May 27, 2017, the tax collector's office will conduct an annual Tax Certificate Sale to collect the preceding year's unpaid taxes and associated fees.

A tax certificate is a first lien created when a third party (tax certificate holder or investor) pays the outstanding delinquent taxes on a property. A tax certificate is an interest bearing "lien" for unpaid real estate and non-ad valorem assessments. They are a first lien against property and supersede governmental liens.  Tax certificates convey no property rights.

The tax certificate’s face amount consists of the sum of the following: delinquent real estate tax (unpaid amount), interest (1.5% per month for April and May on the delinquent amount), Tax Collector’s commission (5% on the delinquent amount) and the newspaper’s advertising charge (& sale costs or other costs).

To pay off a tax certificate, the property owner must pay delinquent taxes, accrued interest and advertising costs. Upon redemption, the Tax Collector's office reimburses the tax certificate holder/investor all monies due.

If the property owner fails to pay delinquent taxes within two (2) years from the date tax certificate lien was issued, the tax certificate holder/ investor may file a tax deed application.  A tax deed application may result in a Tax Deed Foreclosure.

 

A tax certificate does not convey any property rights. Purchasing a tax certificate is simply an investment.