What happens when property taxes become delinquent?
When current year taxes are unpaid, there is a 10% penalty applied to each installment not paid. When taxes are allowed to remain delinquent after June 30 of each fiscal year, interest will start to accrue at 1.5% per month, 18% per year, compounded. Delinquent reminder letters are sent to taxpayers each year, reminding them of the tax delinquency and options available. This office offers installment plans for those that are having a hard time keeping up with the tax liability. We encourage those that are having a difficult time to contact our office so that we can assist them in getting back on track.
In May of each year, by law, a publication is released that lists potential properties that are at risk of being sold at tax auction. These properties that are listed are those properties that have a tax delinquency expanding five years or in some cases more.
Once a property becomes subject to potential auction, the taxpayer has until the last business day in June. Once that deadline passes, the properties become tax-defaulted and will be subject to power to sell. The law does not allow for installment plans to be started after this occurs and in order to “redeem” the property all tax delinquencies must be paid in full before 5pm the day before the public auction begins and properties are sold at public auction.
We do our best to try to reach all homeowners and parties of interest. Any party that may have any interest in the property to be sold is contacted through media publications, both electronically and in print, certified letters, direct telephone calls, and in some cases, personnel contact. We ask that if you recognize a name on the published list to please inform that person of the delinquency. Although we do thorough research to give written notice to the owners of the properties, there are a few that do not have valid addresses on file and may not be notified as timely as we would like. Time is crucial in this process.
The date for taxpayers to start an installment plan for potential auction property is June 30 of each year. Once this deadline passes, properties can only be redeemed if paid in full by 5pm the day before the auction begins. Payment must be in the form of cash or cashier's check. All remaining properties with a defaulted tax year five years or more will go to auction. The tax auction is held online through www.Bid4Assets.com and all information on how to bid on a parcel is contained on this site.