Florida Tax Sales

Florida recently held their tax sales to auction off tax certificates on delinquent properties. Most counties will identify the property owner, parcel number, legal description and the amount due. In some cases, the tax sale list may include the tax collectors assessed value of the property.

The county tax collector has the authority and obligation to collect all taxes as shown on the tax roll by the date of delinquency or to collect delinquent taxes, interest, and costs, by sale of tax certificates on real property and by seizure and sale of personal property. The tax collector shall be allowed to collect reasonable attorney's fees and court costs in actions on proceedings to recover delinquent taxes, interest, and costs (Sec. 197.332).

The way this works is that the buyer of the tax certificate bids down the interest starting at a maximum of 18 per annum from the date of delinquency until a tax lien certificate is sold (Sec. 197.172). Each certificate shall be sold off to the person who will pay the taxes, interest, costs, and charges and will demand the lowest rate of interest, not in excess of the maximum rate of interest allowed by this chapter. The tax collector shall accept bids in even increments and in fractional interest rate bids of one-quarter of 1 percent only. If there is no buyer, the certificate shall be issued to the county at the maximum rate of interest allowed by this chapter. (Sec. 197.432).

When a tax certificate is redeemed and the interest earned on the tax certificate is less than 5 percent of the face amount of the certificate, a mandatory charge of 5 percent shall be levied upon the tax certificate. The person redeeming the tax certificate shall pay the interest rate due on the certificate or the 5-percent mandatory charge, whichever is greater. This subsection applies to all county-held tax certificates and all individual tax certificates except those with an interest rate bid of zero percent. (Sec. 197.432 (2) ).

Any person may redeem a tax certificate at any time before the tax deed is issued or the property is placed on the list of lands available for sale (Sec. 197.472). The certificate holder is entitled to initiate a judicial foreclosure proceeding any time after two years from April 1 of the year the certificate was purchased; however, the proceeding must be commenced within seven years of the certificates date of issuance (Sec. 197.502).

The deed is assigned at foreclosure to the holder/owner of the Tax Lien Certificate. (1) The holder of any tax certificate, other than the county, at any time after 2 years have elapsed since April 1 of the year of issuance of the tax certificate and before the expiration of 7 years from the date of issuance, may file the certificate and an application for a tax deed with the tax collector of the county where the lands described in the certificate are located. The application may be made on the entire parcel of property or any part thereof which is capable of being readily separated from the whole. The tax collector shall be allowed a tax deed application fee of $75 (Sec. 197.502).

Each county holds their own tax certificate sale, so if you are interested in bidding next year, please see the county website for more information. For example Volusia County would be www.volusia.org.

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