Nebraska Tax Liens

Sale Type:	Tax Lien
Interest Rate:	14% per year
Bid Method:	Rotational
Redemption Period:	3 Years
Sale Date(s):	First Monday in March
State Statute(s):	Chapter 77
Over-the-Counter:	Yes
State Website:	http://www.nebraska.gov/

Nebraska State Overview

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.

Montana Tax Liens

Sale Type:	Tax Lien
Interest Rate:	10%
Bid Method:	Highest Bidder
Redemption Period:	3 Years
Sale Date(s):	July
State Statute(s):	15-17-911
Over-the-Counter:	No
State Website:	http://mt.gov//

Montana State Overview

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…’.

New Jersey Tax Liens

Sale Type:	Tax Liens
Interest Rate:	18% per annum
Bid Method:	Bid down the interest or premium
Redemption Period:	2 Years
Sale Date(s):	Varies by county
State Statute(s):	Title 54, Subtitle 2 CH 5
Over-the-Counter:	No
State Website:	nj.gov

New Jersey State Overview

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.

Rhode Island Tax Liens

Sale Type:	Tax Lien Certificates/Tax Deeds
Interest Rate:	10%+1%
Bid Method:	Highest Bidder
Redemption Period:	1 Year
Sale Date(s):	Year Round
State Statute(s):	Title 44, CH 9
Over-the-Counter:	No
State Website:	www.ri.gov

Rhode Island State Overview

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 Tax Liens and Deeds

Sale Type:	Tax Lien Certificates
Interest Rate:	3%-12%
Bid Method:	Highest Bidder
Redemption Period:	12 – 18 Months
Sale Date(s):	Fall
Statute Section(s):	Code of Laws Of SC – Title 12, CH 51
Over-the-Counter:	No
State Website:	www.sc.gov

• 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‘.

Wyoming Tax Liens

Sale Type:	Tax Lien Certificates
Interest Rate:	15% + 3% Penalty
Bidding Method:	Random Selection
Redemption Period:	4 Years
Typical Sale Period:	Summer
State Statute(s):	Title 39, Ch 13
State Website:	wyoming.gov
Wyoming Resource:	http://www.wyo-wcca.org

Wyoming State Overview:

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.

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Alaska Tax Deeds

Sale Type:	Tax Deed
Interest Rate:	N/A
Bid Method:	Varies by Municipality
Redemption Period:	1 year minimum
Sale Date(s):	Varies by Municipality
Statute Section(s):	Title 29, CH 45, Article 2
Over-the-Counter:	County – NO State –YES
State Website:	http://www.state.ak.us/

Alaska State Overview

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.

Arkansas Tax Deeds

Sale Type:	Tax Deed
Interest Rate:	N/A
Bid Method:	Premium Bid
Redemption Period:	N/A
Sale Date(s):	Year Round
State Statute(s):	Title 26, Sub Title 4, CH 37
Over-the-Counter:	Yes
State Website:	arkansas.gov

Arkansas State Overview

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.

California Tax Deeds

Sale Type:	Tax Deed Certificates
Interest Rate:	N/A
Bid Method:	Premium Bid
Redemption Period:	N/A
Sale Date(s):	Spring (Varies by County)
State Statute(s):	Div 1, Part 6,7,7.5
Over-the-Counter:	No
State Website:	http://www.ca.gov/

California State Overview

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.”

Delaware Tax Deeds

Sale Type:	Hybrid – Tax Deed w/ Redemption Period
Interest Rate:	15% Penalty
Bid Method:	Premium Bid
Redemption Period:	60 Days
Sale Date(s):	Year Round (Varies by county)
State Statute(s):	Title 9, CH 87
Over-the-Counter:	No
State Website:	http://delaware.gov/

Delaware State Overview

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.”