Anne M. Gannon, the Constitutional Tax Collector serving Palm Beach County recovered $122 Million in delinquent property tax revenue in the tax certificate sale held Tuesday, June 1, 2010. The successful sale recovered 99.94% of all 2009 unpaid real estate tax dollars, at the low interest rate of 3.59%. The low interest rate means that property owners pay less to recover the tax certificate held on their property.
A tax certificate is a statutory lien on property created when a third party pays the delinquent taxes and associated fees on a property. The Tax Collector is required by law to conduct a sale of tax certificates to collect the preceding year’s unpaid real estate property taxes. A third party who holds a tax certificate on a property doesn’t own the property.
The interest rate on the certificates begins at 18%. Certificate buyers bid down the interest rate and the certificate is awarded to the lowest bidder. Palm Beach County’s interest rate of 3.59% is one of the lowest rates produced over 26 Florida counties auctions conducted by Realauction this year. The low interest rate is the product of more bidders which means that when a person pays back their property taxes, they will pay the lowest interest rate established by statute of 5%. Tax Collector Gannon said, “I am pleased that this year’s tax certificate sale attracted a large number of bidders, driving down the interest rates, and ultimately making it easier for property owners to pay back their delinquent taxes. In these economic times, everyone deserves a little break.”
