V.C. Tax Collector Explains Property Tax Certificate Bids

DeLand, FL – Property Tax Certificate bidding in Florida is now open with a sale date of May 31. Volusia County Tax Collector Will Roberts says that homeowners behind on their property taxes actually benefit from the process. "Some parcel owners get worried that their property is going to be taken immediately. The state of Florida is actually very protective. It does take two years before it can go to tax deed sale, to auction, to the highest bidder."  Roberts said bidders also benefit by bidding on the interest rate to be charged on the Property Tax Certificate. "The bidders are going to get interest. They bid on their interest from 0 to 18 percent. What they’re bidding on is the interest they are going to receive after the parcel is paid by the property owner."  Registrations and bids for the online auction may be submitted at LienHub.com.  A list of real property with delinquent taxes is posted on the site. Per a press release from the Volusia County Tax Collector’s Office: On or before June 1 of the same year the taxes become delinquent, the tax collector holds a public sale of tax certificates for parcels on which taxes have not been paid. The cost to purchase a certificate is listed beside each parcel in the delinquent advertisement. This cost includes gross tax, a 3% fee, advertising costs, and the cost of the tax certificate sale. A tax certificate represents a first priority tax lien on real property. It does not convey title to the land. Tax certificates are investments and not a deed to the property. Certificate buyers should be aware that there are inherent risks involved with buying tax certificates. Those risks are borne solely by the certificate holder. Property owners who are delinquent on their property taxes may avoid the issuance of a tax certificate on their property by paying the taxes along with a 3% fee, advertising cost, and the cost of the tax certificate sale by May 31. Once a tax certificate is sold on the property, the additional cost to the property owner could be as high as 18 percent per year. Once a tax lien or certificate is recorded on the property and the taxes remain unpaid after the tax lien sale for two years, the tax certificate holder may start the tax deed sale process. The property could be sold at auction to the highest bidder. For more information on tax certificates, please visit vctaxcollector.org or call the Office of the Tax Collector at 386-736-5938.