What is tax certificate sale
The 2015 tax certificate sale will take place on June 1, 2015. Bidders can review the list of properties and begin to submit bids starting on May 7, 2015. Anyone wishing to access the tax certificate sale web site, whether or not you are going to bid, must have a bidder number and password. To access the internet tax certificate sale click HERE*. First time users may familiarize themselves with the internet tax certificate sale process by using the PRACTICE* module. *Not accessible until May 7, 2015.
The delinquent tax sale list will be advertised in the Tallahassee Advertiser and placed in various newspaper racks throughout the city on May 14, May 21 and May 28, 2015. Copies of the Delinquent Tax Sale List will be available at each of the Tax Collector's Customer Service Centers or download it from this website.
Tax certificates will be sold in the order advertised. Each item will be bid separately, as it is unlawful for certificates to be sold in any form of rotation.
CAUTION: This is NOT a sale of land. Rather, what is being sold is a lien for the amount of delinquent taxes plus interest and cost.
SALE PARTICIPANTS BEWARE: The purchase of a priority lien tax certificate offered for sale by any Florida County Tax Collector is not a guaranteed investment.
Prior history indicates that occurrences may arise, or be in effect, that could reduce or eliminate the dollar value attributed to any given tax certificate. The following possibilities, though not inclusive, are some of the non-cost recoverable circumstances that may surface:
- The property owner could file bankruptcy.
- The assessed value on the parcel by the Property Appraiser may be in error and not subject to retroactive correction when the problem is discovered.
- The legal parcel identity may be a condominium within a group of buildings that are later condemned or destroyed, leaving the tax certificate purchaser with a 1/4th to 1/8th ownership tax lien on a relatively small vacant property.
- The parcel may have had a mobile home on it at the time of tax certificate sale which is subsequently removed or destroyed, leaving the property vacant.
- The parcel may have had an assessed structure, or wood frame home that subsequently is burned down or condemned and destroyed.
Finally, there is absolutely no guarantee that by purchasing a tax certificate you will be successful in eventually acquiring the property. Generally, in the very few instances where a tax certificate holder applies for a tax deed application after at least two years have elapsed from the year the certificate was issued, and the taxes are not paid by the owner or an entity with a financial interest, another group of real estate investors participate in the noticed public tax deed auction that eventually is conducted
by the Clerk of Court.
Buyers of Tax Certificates do not bid on the property, but bid on the percentage of interest their money will earn, starting at 18% and bidding down. Bids are accepted in even increments and in fractional increments of 1/4 percentage points only. No interest is earned on "0" bids.
IMPORTANT: Certificate(s) will be issued in the name listed on the bidder's IRS Form W-9 or W-8 for foreign bidders. If changes are requested on bid items after the sale, a $2.25 transfer fee on each certificate is required. It is required that a Social Security Number or a Federal Identification Number be furnished on the IRS Form W-9 or W-8 for foreign bidders, as all interest earned is required to be reported to the Internal Revenue Service.
In accordance with Section 197.502(1), F.S. the holder of any tax certificate (other than the county), at any time after two years have elapsed since the year of issuance of the tax certificate and before the expiration of seven years from the date of issuance, may file the certificate and an application for a tax deed with the Tax Collector's Office. The property would then be offered at a public auction conducted by the Office of the Clerk of the Circuit Court. The holder of the Certificate may bid along with any other interested party if so desired.
No certificate will be sold at public auction on property that has been granted a homestead exemption and has less than $250.00 in delinquent taxes owing. When a tax deed application is made on property assessed on the latest tax roll as homestead property, the opening bid shall include an amount equal to one-half of the assessed value of the homestead property as listed on the current year's tax roll in addition to other taxes, interest and cost paid in connection with the tax deed application. According to Chapter 197.542, F.S. if a homestead property is brought to tax deed sale and no bids are received that are higher than the required opening bid explained above, then the land shall be struck off and sold to the certificate holder, who shall pay the documentary stamp and recording fees due to the Clerk of the Circuit Court. At that time, a tax deed shall be issued to the applicant and duly recorded in the official records of the County by the Clerk.
When a certificate has been redeemed, the holder is entitled to the face value plus whatever interest has been earned on the amount of the face value at the time of redemption. The redemption is handled in the Tax Collector's Office. Checks for the amount of the redemption monies are written weekly and remitted to the effected certificate holder(s). According to Section 197.172(2) F.S. tax certificates earn interest starting June 1, 2015.