General Information

On the advertised day and time, but no later than June 1st, the Tax Collector auctions and sells a tax certificate on each delinquent parcel of real property. Only registered bidders may participate in the tax certificate sale. Bidding begins at 18% and is bid downward. The certificate is sold to the person bidding the LOWEST annual interest rate.

	When do real estate taxes become delinquent?
	Are delinquent taxes advertised?
	What is a tax certificate?
	What is a tax certificate sale?
	How do I become a bidder?
	Is a deposit required of bidders?
	If I am a successful bidder, how do I pay for my certificates?
	What if there are no bids?
	Are the county certificates available for purchase?
	Can a tax certificate be cancelled or changed?
	Is this a risk free investment?
	How are tax certificates redeemed?
	After the tax certificate is redeemed, how does the tax certificate holder receive their money?
	Is the interest taxable?
	What if the tax certificate is not redeemed?
	What is the life of a tax certificate?
	What happens at the tax deed sale?
	Can a property owner stop a tax deed sale?
	What is the "List of Lands Available"?

Real estate taxes become delinquent April 1st each year. (Example: 2007 taxes became delinquent April 1, 2008.) At that time, 3% interest was added to the gross tax.

Yes. A list of all real estate property with delinquent taxes is advertised once a week for three consecutive weeks in a local newspaper during the month of May. The advertisement specifies the place, date and time of the Tax Certificate Sale. The advertising list is available as a download, see Delinquent Real Estate Taxes Advertising List.

A tax certificate represents a lien against real property and earns interest at a maximum rate of 18% per year. The amount due to purchase a tax certificate is listed beside each parcel in the delinquent advertisement. This amount includes the gross tax, interest, advertising cost and the cost of the Tax Certificate Sale.

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. At a tax certificate sale, you are bidding on an interest rate, you are not buying property.

How do I become a bidder?

New bidders must complete a W-9 form in order to purchase tax certificates. You may contact our office any time after May 1st at (772) 226-1343 to obtain the form or you may print it directly from the IRS site. Once you have completed the form, please return it to our office . If you choose to complete the W-9 form in advance, it will still be necessary for you to sign in at the tax sale before you are able to bid. Our office staff will be available beginning at 7:30 a.m. at 1801 27th Street - Building A, Vero Beach, FL , which is where the tax certificate sale will be held.

If you are a returning bidder, it is still necessary for you to stop by the registration room prior to the beginning of the sale to obtain your bidder card and make the required deposit.

The tax certificates will be issued in the name that appears on the W-9 form. Any requests after the certificate sale for the tax certificate to be issued in a different name is considered a transfer and there is a fee of $2.25 for each certificate that is transferred.

If there is no bid for a tax certificate, it is issued to the County at 18% interest.

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 certificate holder with interest at the bid rate or 8% whichever is lower, calculated monthly through the month of cancellation/correction. On tax certificates sold prior to 10/1/98, interest on cancellation/corrections will be calculated at 8% annually.

No. Although it is a secure investment in most cases, there is an element of risk in purchasing tax certificates. Some examples would be:

• In the event of a correction to the original taxes, interest would be paid as indicated above.

• 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.

• If the landowner enters into bankruptcy, the certificate holder is prevented from enforcing the lien (apply for a tax deed) until the bankruptcy is released. In addition, the bankruptcy court has the authority to lower the interest rate and/or order payments to be made over a period of years.

• If the County holds a tax certificate and applies for the tax deed, no other certificate holders are paid off unless the property is purchased at the tax deed sale or redeemed prior to the tax deed sale. By law, the County does not redeem any other outstanding tax certificates when making tax deed application. If the property is not purchased or redeemed, the land will eventually escheat to the County and the certificate holders investment would be lost.

In order to clear the property of the tax lien, the property owner must pay the amount of the tax certificate plus interest calculated from the month of the certificate sale to the month of payment. When a tax certificate is redeemed and the interest earned is less than 5%, a mandatory charge of 5% interest is due. Payments to redeem tax certificates must be made with certified funds, i.e., cashier’s check, money order or cash. All payments for the redemption of a tax certificate are made to the Tax Collector.

After the certificate is redeemed, the certificate holder receives the amount invested plus interest. Checks are issued to the certificate holder once a week for the redemptions processed in the prior week.

Yes. Interest earned is reported to the IRS and in January a form 1099-INT is sent to each certificate holder for interest earned in the previous year.

If the taxes are not paid within two years from the date the tax became delinquent, (April 1st) the certificate holder may apply for a tax deed and bring the land to sale at a public auction, which is commonly referred to as a tax deed sale. Example: 2007 taxes are delinquent April 1, 2008; therefore, a tax deed application may be made after April 1, 2010. A certificate holder who wishes to apply for a tax deed must redeem all other outstanding certificates and pay other fees as mandated by state law.

What is the life of a tax certificate?

If the property goes to a tax deed sale, the starting bid is the total amount the certificate holder has paid to initiate the tax deed application plus interest. If 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 property is sold to the highest bidder who 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 to initiate the tax deed application plus 1 1/2% interest per month beginning the 1st day of the month following the month of application. The tax deed sale is conducted by the Clerk of Circuit Court. Any questions regarding the sale or disbursement of proceeds should be directed to the Clerk’s Office.

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.

Can a property owner stop a tax deed sale?

Yes. The owner of the property can prevent the loss of the property by paying all accrued costs and interest (base bid at the tax deed sale) at any time before the tax deed is issued by the Clerk of the Circuit Court.

If the County is the holder of a certificate and begins a tax deed application 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 7 years (or 3 years if all the certificates were issued after July 1, 1999) by paying the original opening bid, any additional years taxes, accrued interest 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 (772) 226-3184.