The Annual Tax Sale in Iowa is administered by the County Treasurer, designed to collect unpaid property taxes. Property Taxes fund vital community services such as hospitals, schools, law enforcement, and road construction. The Annual Tax Sale guarantees that these budgets are funded, and any unpaid taxes by the sale date are made available to bidders.
Pre-registration and Participation
To participate in the Tax Sale, interested parties must pre-register at the County Office, pay the registration fee, and provide the County with a W-9 form. Additionally, it is important to note that individuals with an interest in a parcel are not allowed to bid on it. This includes the following:
- spouse of the title holder
- the title holder’s heir
- a lessee
- a renter
- mortgagor
- mortgagee
- a previous certificate holder
- any other interest of record
The Iowa Tax Sale and Successful Bidding
The County’s Annual Tax Sale is held on the third Monday in June, in accordance to Iowa Code §446.7. The sale offers each parcel for the amount of taxes, interest, and costs due, plus a certificate fee. The bidder that offers to pay that price is the successful bidder. They will then be required to pay subsequent taxes on time and no later than 14 days after they become delinquent. Failure to pay the subsequent taxes may result in the parcel being sold again at the next tax sale.
Certificates and Tax Sale Deeds
It is important to note that a certificate is only a tax lien, it does not give the bidder any rights or responsibilities until they obtain a tax sale deed and record it with the County Recorder.
Once the traditional twenty-one month redemption period expires, the bidder must serve a notice to the property owner. In doing so, they are informing them of the expiration of the redemption period. If the property owner does not redeem the property within 90 days, the bidder can move forward with the process of obtaining a Tax Sale Deed from the County Treasurer. The Treasurer will then issue the bidder a tax sale deed to the property.
Conclusion
In conclusion, the Annual Tax Sale is a significant event that enables Iowa to collect unpaid property taxes. The Tax Sale pre-registration process requires paying a fee and submitting a W-9 form. Successful bidders are responsible for paying subsequent taxes on time. A certificate is only a tax lien, and a notice will need to be served after the redemption period expires.
Danilson Law can answer any questions regarding your County’s Annual Tax sale, bidding on a property, or obtaining a tax sale deed.
