Credit portal




What is a property tax certificate

what is a property tax certificate

Tax Certificate Sale

A tax certificate is an enforceable first lien against the property for unpaid real estate taxes. The certificate holder is actually paying the taxes for a property owner in exchange for a competitive bid rate of return on the investment. In order to remove the lien, payment must be submitted to the Tax Collector for the delinquent taxes including accrued interest, penalties, and advertising fees. The Tax Collector then notifies the certificate holder of any certificates redeemed and pays the certificate holder.

The tax certificate sale allows investors to purchase certificates by paying the tax debt. The sale is conducted in a reverse-auction style with participants bidding downward on interest rates starting at 18%; the certificate is awarded to the lowest bidder who will pay the taxes, interest and costs and accept the lowest rate of interest. A tax certificate earns a minimum of 5% interest for the investor until the interest has accrued to greater than 5%, with the exception of "zero" interest bids, which always earn "zero" interest.

A tax certificate is valid for seven years from the date of issuance. If the purchaser of the certificate holds that certificate for a period of two years from the date of delinquency and the property owner does not pay the tax, the certificate holder may file a tax deed application with the Tax Collector. The property owner is notified of this action and if the owner still does not pay the taxes, the property will be sold to the highest bidder in a public sale conducted by the Clerk of the Circuit Court. A list of the upcoming tax deed sales by the Clerk and the property that may be available to be purchased may be downloaded below:

Please note that if the taxes are paid prior to the sale, the property will not be sold.

The Tax

Certificate Sale is conducted online at and bidders must pre-register in order to participate in the sale. Bidder registration is available in early May. Bidders may place, edit and remove bids from the time of registration until the certificate is awarded on the day of sale.The certificates are grouped in batches which close hourly, giving bidders an opportunity for additional bidding. Bidders are not required to place a deposit. Bidders are responsible for all bids placed and are required to pay for all certificates awarded.

The life of a tax certificate is 7 years. In the event of a bankruptcy filing, the life of the certificate may be extended. If no action is taken by the tax certificate holder during the 7-year period and the taxes remain unpaid, the tax certificate is cancelled and the certificate holder will lose his or her investment.

To redeem the certificate, payment must be made to the Tax Collector for delinquent taxes plus accrued interest, advertising costs and collection fees. The amount due for delinquent taxes is determined by the date payment is received by the Tax Collector and not the postmark. After payment is received and validated, the certificate holder is reimbursed the cost of the certificate plus interest and the lien against the property is removed.

Certificates can be sold and transferred to another buyer by submitting a notarized, written request along with a transfer fee of $2.25 per certificate.

Unsold Certificates

Any certificate without a bid is struck to the County at 18% annual interest and is available for purchase at 18% on a first-come-first-serve basis at the online Tax Sale Website. Purchasers will need to register before buying certificates. Simply visit the website, select the area that says "Purchase County-held Certificates" and follow the instructions. If you are already registered, once you login, select “Go to Summary” then "Buy Certificates."

Category: Insurance

Similar articles: