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General
Information |
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| On the advertised day and time, but no later
than June 1st, the Tax Collector will sell a tax certificate on
each delinquent parcel of real property. Only pre-registered bidders
may participate in the tax certificate auction. Bidding begins at 18%
and the certificate is sold to the person bidding the LOWEST annual interest
rate. |
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County Held Certificates
available to purchase now!
Click here for information. |
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If I purchase a tax
certificate, will I own the property? |
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 | NO. A tax certificate represents a lien on the property
only. The property owner still has full use of and right to the
property unless it is sold, foreclosed or a tax deed is issued. A
tax certificate is strictly an investment for the certificate holder.
After two years a certificate holder does have the right to bring the
land to a public auction where a tax deed may be issued. The tax
deed would be issued to the person bidding the highest at the auction -
it is not automatically issued to the certificate holder. Please
be advised that a tax deed is not the same as a warranty deed and may
require additional steps and fees before being a clear title to the
property. |
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When do real estate
taxes become delinquent? |
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| Real estate taxes become delinquent April 1st each year.
Example: 2011 taxes became delinquent April 1, 2012. At that
time, 3% interest is added to the gross amount. |
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Are delinquent taxes
advertised? |
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| Yes. A list of all real property with delinquent taxes is
advertised once a week for three consecutive weeks in a local newspaper
during the month of May. The 2012 Tax Certificate Sale will be
conducted on the internet. The 2012 advertising list (for
delinquent 2011 taxes) will also
be available online by mid-May, 2012. |
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What is a tax
certificate? |
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| A tax certificate represents a lien on real property and earns
interest at a maximum rate of 18% per year. The cost to purchase a
certificate is listed beside each parcel in the delinquent advertisement
and includes gross tax, interest, advertising cost and the cost of the tax
certificate sale. |
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What is a tax
certificate sale? |
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| On the advertised day and time no later than June 1st, the Tax
Collector auctions and sells a tax certificate on each delinquent parcel.
Since the taxes on some parcels will have been paid prior to sale, those
paid parcels that appeared in the newspaper advertisement will be skipped.
Bidding begins at 18% and the certificate is sold to the person bidding
the LOWEST annual interest rate. |
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| The Sarasota County Tax Certificate Sale will be conducted on the
Internet. Bidders will have 2-3 weeks to enter their bids prior to
the certificates being awarded on June 1st. |
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How do I become a
bidder? |
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| Bidder registrations will be handled online toward the end of April and
will require the name, address, phone number and taxpayer identification
or social security number for each bidder. New certificate holders will need to register.
If you purchased certificates in the 2011 Tax Sale, you will not need to
re-register. |
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| All bidders may be required to post a deposit prior to certificates
being awarded. |
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What if there are no
bids? |
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| If there is no bid for a tax certificate, it is issued to the County
at 18% interest. |
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Are the County
certificates available for purchase? |
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| Yes, those certificates are available for purchase on the internet
anytime. |
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| When someone buys a county tax certificate the
lien is transferred to the buyer. The purchase price is the amount
of the original certificate plus interest due to the date of purchase and
fees. The interest rate of the purchased certificate is 18%. |
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Can a tax
certificate be cancelled or changed? |
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| Yes. A tax certificate can be cancelled or changed if there
was an error in the original tax bill or in the issuance of the tax
certificate. The portion in error will be refunded to the tax
certificate holder with interest as bid, up to 8%, calculated monthly to
the date of cancellation/correction. |
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Is this a risk free
investment? |
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| No. Although it is a secure investment in most cases, there is
an element of risk. Some possible risks are: |
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| In the event of a correction to the original taxes, interest would be
paid as indicated above. |
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| If the property value drops significantly in subsequent tax
years, it may cost more to bring the property to sale than the value
gained by owning the property. |
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| If the landowner enters into bankruptcy, the certificate holder is
prevented from enforcing the lien until the bankruptcy is released.
The bankruptcy court can lower the interest rate and order payments to be
made over a period of years. |
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| If the County holds another year's certificate and applies for the tax
deed, no other certificate holders are paid off unless the property is
purchased. If the property is not purchased the land reverts to the
County and the certificate holders investment may be lost. |
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How are tax
certificates redeemed? |
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| In order to clear the property of the tax lien, the amount of the
tax certificate plus interest calculated from the month of the
certificate sale to the month of payment must be paid. The
interest cannot be less than 5%. All payments are made to the Tax
Collector. |
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After payment, how
does the tax certificate holder receive the money? |
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| After payment, the certificate holder receives the amount invested
plus interest. Through a Direct Deposit agreement monies are
electronically deposited by the Tax Collector into the certificate
holder's checking or savings account. |
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Is the interest
taxable? |
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| Yes. Interest earned is reported to the IRS and in January a
form 1099-INT is sent to each certificate holder for earnings in the
previous year. |
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What if the taxes
are not paid? |
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| If the taxes are not paid within two years from the date the tax
became delinquent, the certificate holder may apply for a tax deed and
bring the land to sale at a public auction. Example: 2011
taxes are delinquent April 1, 2012; therefore, a tax deed
application may be made after April 1, 2014. A certificate holder
who wishes to apply for a tax deed must redeem all other certificates and
pay other fees as mandated by state law. |
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What is the life of
a tax certificate? |
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| The life of a tax certificate is seven years from the date of
issuance. If the certificate holder does not apply for a tax deed
within seven years, the certificate is null and void. |
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| If the property is included in a
bankruptcy proceeding, the 7 year period will be extended by the amount
of time that the property was in bankruptcy. |
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What happens at the
public auction? |
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| If the land goes to a public sale, the starting bid is the total
amount of the tax deed application. When the property is assessed on
the latest tax roll as homestead property, the starting bid also includes
one half of the assessed value of the property as listed on the current
year's tax roll. The highest bidder will receive a tax deed from the
Clerk of the Circuit Court. This is not the same as a Warranty Deed
and more steps may be necessary to obtain a clear title. If the
applicant is not the highest bidder, she/he will be reimbursed for the
total amount paid at the time of the application plus 1 1/2% interest per
month. If the highest bid is greater than the amount paid in the
application, all parties with a recorded interest are notified.
After all claims have been satisfied, any additional money is sent to the
property owner. |
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| A lien of record held by a municipal or county governmental unit
survives the issuance of a tax deed if not satisfied from sale proceeds. |
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Can a property owner
stop a land sale? |
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| Yes. The owner of the property can prevent the loss of the land
by paying all accrued costs and interest at any time before the tax deed
is issued. |
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What is the "List of
Lands Available"? |
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| County-held certificates: When property is
offered at the public sale and there is no bidder, the land is placed on a List of
Lands Available. The property can be purchased any time during the
next 3 years by paying the original opening bid, any additional years taxes and
the Clerk's fees. If no one purchases the property, the County
becomes the owner. To obtain information on the List of Lands
Available, contact the Clerk of the Circuit Court (941) 861-7400.
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| Individual-held certificates: In certain circumstances when an
individual brings their certificate up for public auction and there is
no other bidder, the certificate holder is required to pay additional
fees to acquire the tax deed. If the certificate holder chooses
not to pay the fees, they do not acquire title to the property and the
land is placed on the List of Lands Available. The property can be
purchased any time during the next three years by paying the original
opening bid, any additional years taxes and the Clerk's fees. If
no one purchases the property, the tax liens expire and the County
becomes the owner. To obtain information on the List of Lands
Available, contact the Clerk of the Circuit Court (941) 861-7400.
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