Lazaro Aleman: Greene Publishing, Inc.
Notices have now begun appearing in this paper of properties that are delinquent in the payment of their property taxes. Individuals whose names appear on the list on the inside pages should be mindful that if delinquent taxes remain unpaid, it could ultimately result in their properties being auctioned on the courthouse steps.
Per Florida statutes, the Delinquent Tax List Notice must be published in the newspaper for three consecutive weeks, prior to the tax certificates sale. To wit: Properties with overdue taxes from the previous year are declared delinquent on April 1, at which point a three-percent penalty is applied.
Come May, the Tax Collector holds a public auction on the delinquent properties via a tax certificates sale, which gives the buyers a lien or legal claim on the subject property. Each certificate’s value is calculated as the sum of all unpaid taxes and assessments on the particular property, plus the three-percent penalty, the advertising costs and tax sale fees.
The way it works, interested parties bid interest rates rather than dollars, with the bidding starting at 18 percent and theoretically moving downward, until the bidder willing to accept the lowest interest rate gets the certificate. In actuality, however, most certificates go at the 18 percent rate.
At the auction’s conclusion, bidders pay the county the face value of each certificate they hold, which is the sum of the unpaid real estate and non ad-valorem taxes (including the fire and landfill assessment here), the three-percent penalty, the advertising costs and tax sale fees. Considering that some bidders acquire multiple certificates at a time, the amounts bidders pay can prove significant.
Beginning on June 1, the certificates begin earning simple interest, calculated monthly at the rate of the winning bid. Meaning that if a property owner wants to redeem his or her property, he or she must pay the face value of all certificates on the land, plus the accrued interest on each. This amount can be prohibitive, especially in cases where there are several years of unpaid taxes.
Ultimately, of course, the property may go on the auction block if the certificate holder calls for his or her money, which they can do after two years.
Traditionally, tax certificates sales occur in late May (the law simply requires that it be held on or before June 1). Delinquent properties can range in size from a fraction of an acre to hundreds of acres, and the owed taxes on them can range from a few dollars to hundreds of dollars.
Certificates not redeemed after seven years simply expire, at which point the holder loses his or her investment and the property reverts to the original owner, all taxes paid.