Sale of Tax Defaulted Property
On July1, when
five or more years have elapsed since a property became
tax-defaulted, the tax collector is empowered to sell all
or any portion of that tax-defaulted property that has not
been redeemed. A “Notice of Power to Sell Tax-Defaulted
Property” is recorded. Property that has been tax-defaulted
for five or more years and is subject to the tax collector’s
power to sell may be sold. The tax collector has the authority
to sell tax-defaulted property that is subject to the power
of sale. This means your property will be sold, after approval
from the Board of Supervisors, at a public auction or by
sealed bid to the highest bidder at the time and place fixed
for the sale.
Defaulted Taxes
Annually, at 12:01 a.m. on July 1, the taxes, assessments,
penalties and costs on real property which have not been
paid by the close of business on the last day of the preceding
June are, by operation of law, declared in default. The
property on which the taxes, assessments, penalties and
costs are in default becomes “tax-defaulted”
property.
Redemption of Defaulted Taxes
Redemption of property that is tax defaulted may be
redeemed until the right of redemption is terminated. An
owner, or any interested party may redeem tax defaulted
property by paying the total amount of all prior year defaulted
taxes. The amount of defaulted taxes is, in part, defined
as the amount of taxes that were a lien on the real estate
at the time of the declaration of default. Redemption of
property can only occur after the date that property was
declared to be tax defaulted.
If you are unable to pay the full redemption
amount you may open an installment plan of redemption. This
plan allows you to make payments on your defaulted taxes
over a five-year period. To open an installment plan you
must pay any current year's taxes and penalties that may
be due, pay a $15 set up fee and make an initial payment
of at least 20% of the redemption amount.
Under the 5 year installment plan you are
required, by each April 10th to make one payment of 20%
or more of the redemption amount, plus 1.5% interest accrued
per month on the unpaid balance. If you fail to make any
installment payment or fail to pay your current year's taxes
or any supplemental taxes on or before April 10th of each
year, then your account will default. You can, however,
pay the total unpaid balance plus accrued interest at any
time before the fifth and final payment is due.
Also See:
Tax Assistance &
Postponement
