Connecticut Tax Deeds

Connecticut State Overview

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).

Florida Tax Liens & Deeds

Florida State Overview

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 backtaxes, 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 ususally 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.

Idaho Tax Deeds

Idaho State Overview

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 ont he property and many more random fees associated with the sale and the property being delinquent.

Kansas Tax Deeds

Kansas State Overview

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 minimum bid normally consists of all back taxes, penalties, interest and any costs. 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.

Michigan Tax Deeds

Michigan State Overview

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.

Maine Tax Deeds

Maine State Overview

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.”

Minnesota Tax Deeds

Minnesota State Overview

In Minnesota, county tax collectors or treasurers sell tax deeds to the winning bidders at the delinquent property tax sales.

• Tax Sale Type: Tax Deed. (Sec. 282.301).
• Contact: Tax Collector. (Sec. 282.01).
• Interest Rate and/or Penalty Rate: Not applicable.
• Bid Procedure: Premium bid / highest bid. (Sec. 282.01).
• Redemption Period: Not applicable.
• Law: Minnesota Statutes, Chapter 281 “Real Estate Tax Sales, Redemption,” and Chapter 282 “Tax-Forfeited Land Sales.”

Mississippi Tax Deeds

Mississippi State Overview

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

• Tax Sale Type: Tax Lien Certificate. (Sec. 27-41-55).
• Contact: Tax Colector. (Sec. 27-41-47).
• Interest Rate and/or Penalty Rate: 18% per annum and 5% penalty. (Sec. 27-45-3).
• Bid Procedure: Premium bid / highest bid. (Sec. 27-41-59).
• Redemption Period: Two (2) years. (Sec. 27-45-3).
• Law: Mississippi Code, Title 27, Chapter 41, “Ad Valorem Taxes — Collection”, Chapter 45, “Ad Valorem Taxes — Redemption of Land Sold for Taxes,” and Chapter 47, “Ad Valorem Taxes — Assignment of Tax Liens.”
• Important. According to (Sec. 27-41-77) the overbid does not draw interest. Furthermore, the overbid will not be returned upon redemption and “shall be credited to the county general fund”.

Missouri Tax Deeds

Missouri State Overview

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’.

Nevada Tax Deeds

Nevada State Overview

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 (Las Vegas).