TAX CERTIFICATE SALES

Real estate taxes in the State of Florida are for the calendar year and are payable November 1st.  Florida law requires that all real estate taxes be paid by March 31st of each year.  The taxes become delinquent April 1st.  If those taxes are not paid, Florida Statute requires Tax Collectors to conduct a sale of delinquent taxes on or before June 1st. A tax certificate sale is not a sale of land but rather a lien against the property.  Delinquent taxes are listed online with a notice of the date and online sale advertised in the local newspaper prior to the tax certificate sale. The tax certificate sale is open to the public and participants in the sale purchase the certificates as investments. 

The tax certificate sale is conducted electronically on the internet on or before June 1 every year. To participate in a tax certification sale, all bidders must register. The bidder who is willing to accept the lowest rate of interest is awarded the certificate. He or she will then pay the Tax Collector the delinquent taxes, penalties, costs of the sale, and advertising charges. All payments will be paid via ACH within 48 hours of the conclusion of the sale. The total amount paid for each certificate becomes the face value of the certificate. The bidder will earn interest on the face of the certificate at the interest rate he or she was awarded at the tax sale, from June 1st to the date the certificate is redeemed by the property owner. Interest is calculated using the simple interest method. Regardless of when the certificate is redeemed, the certificate holder will earn a minimum of five percent unless the interest bid was zero percent.

Bidders who plan to participate in the tax certificate sale should research the properties on which they plan to bid. Some of the parcels may be easements, landlocked property, alleyways, or other property that has little or no value. There are no guarantees that tax certificates will turn out to be a good investment. Per Florida Statute, certificates are canceled after seven years from the date of the sale unless extended by some administrative action such as bankruptcy. Certificates can be canceled due to certain statutory errors, in which case the bidder will receive 8 percent interest or the bid amount, whichever is lower.

All tax sale certificates issued (except those applicable to certain homestead, bankruptcy and litigation properties) are transferable by endorsement at any time prior to redemption or a tax deed application. Bidders may request transfer of their certificates at a fee of $2.25 per certificate.

Property owners who eventually redeem their tax certificates are required to pay to the Tax Collector the face of the certificate, all accrued interest, and a redemption fee.  All fees are set per Florida Statute 197.

Property owners who still have not paid their delinquent real estate taxes within two years after the taxes became delinquent are risking forfeiture of their property via a tax deed sale. The holder of any tax certificate may at any time after two years has elapsed since taxes became delinquent on April 1 of the year of issuance of the tax certificate and before the expiration of the seven years from the date of issue, may submit a tax deed application to the tax collector of the county where the real estate described in the tax certificate is located. A tax deed sale takes place with the Clerk of Court, is open to the general public and is issued to the highest bidder.

Taxpayers desiring to pay off their delinquent property taxes must pay with CERTIFIED FUNDS ONLY.  No personal or business checks nor credit or debit cards will be accepted.