Property taxes are levied by local governments on the owners of real property within their jurisdiction. These taxes are essential for funding various public services and amenities such as schools, infrastructure, emergency services, and more. In many cases, especially for homeowners with mortgages, property taxes are collected and paid through an escrow account managed by the mortgage servicer. This means that a portion of the monthly mortgage payment goes into this escrow account, which the servicer then uses to pay property taxes on behalf of the homeowner when they become due. However, not all homeowners have their property taxes collected through escrow. In such cases, it becomes the responsibility of the homeowner to pay the property taxes directly to the local government entity. Failure to pay property taxes can result in penalties, interest, and even the possibility of losing the property through tax liens or foreclosure. It’s essential for homeowners to understand their property tax obligations and ensure they are paid on time, whether through an escrow account or directly to the taxing authority.

Taxes are due and payable on November 1 of each year or as soon after that as the tax collector receives the certified tax roll. Taxes are delinquent on the later of April 1 following the year in which they’re assessed or 60 days after the mailing of the original tax notice, whichever is later. (Fla. Stat. § 197.333).

If property taxes in Florida are not paid, the delinquent amount can result in a tax lien being placed on the property. This process is governed by Florida Statute § 197.122. Once a tax lien is placed on the property, the tax collector may opt to sell that lien at a public auction, known as a “tax lien sale.” In Florida, if the property owner still doesn’t pay off the tax lien, the tax collector may proceed with a “tax deed sale.” During this sale, the tax collector auctions off the property itself to the highest bidder. The winning bidder obtains ownership of the property, subject to any existing liens or encumbrances, and the previous owner loses all rights to the property.

In Florida, if property taxes aren’t paid by April 30, the tax collector must send a notice to the owner describing the property and warning of potential tax lien sales. Additionally, the tax collector must publish a notice of delinquent taxes, providing information to the public about properties at risk of tax lien sales.

After purchasing a tax lien at auction, the buyer receives a certificate, often called a “tax lien certificate.” This certificate grants them the right to collect the unpaid tax debt from the property owner, along with accrued interest.

Indeed, according to Florida Statute § 197.432, the winning bidder at a tax lien sale is typically the individual or entity who offers to pay the delinquent taxes, interest, and associated costs and charges, while proposing the lowest interest rate on the debt. This interest rate cannot exceed the maximum rate of interest allowed by law.

According to Florida Statute § 197.432, if a property owner owes less than $250 in delinquent taxes and their home has been granted a homestead exemption, the tax lien cannot be sold at a public auction. Instead, the tax collector will issue the certificate to the county. This provision aims to protect homeowners with lower tax debts and those who have qualified for homestead exemptions from the potential consequences of tax lien sales.

According to Florida Statutes §§ 197.502 and 197.482, the purchaser of a tax lien certificate can apply for a tax deed from the tax collector between two and seven years after April 1 of the year in which the tax collector issued the certificate. This application marks the beginning of the tax deed sale process.

According to Florida Statutes § 197.522, the tax collector is required to send a notice by certified mail to the property owner at least 20 days before the tax deed sale. Additionally, the county sheriff must personally serve notice to the legal titleholder 20 days before the sale. If personal service isn’t possible, the notice must be posted conspicuously on the property. Furthermore, as per Florida Statute § 197.512, notice of the tax deed sale must also be published in a newspaper or, if no newspaper is available, posted publicly. These notice requirements ensure that property owners are informed about the impending tax deed sale and have an opportunity to address any issues or concerns regarding the sale of their property.

According to Florida Statute § 197.542, the clerk of the circuit court conducts the tax deed sale, which is essentially a public auction. During this sale, the property is sold to the highest bidder. It’s common for the tax certificate holder, who is essentially the individual or entity that purchased the tax lien, to bid the amount of the debt owed to them rather than cash. If no other bids are made on the property, the tax certificate holder would acquire the property. This process provides an opportunity for the tax certificate holder to obtain the property by satisfying the outstanding tax debt, interest, and associated costs.

In many states, including Florida, delinquent taxpayers typically have a redemption period during which they can reclaim their property after a tax sale by paying the buyer the amount paid at the sale, or by paying the overdue taxes along with interest, penalties, and costs. In Florida, the redemption period occurs before the tax deed sale, providing property owners with an opportunity to settle their tax debts and retain ownership of their property. However, if the property owner fails to redeem the property within the specified redemption period, the purchaser of the tax lien or tax deed can acquire title to the property free and clear of any liens that existed before the sale. This highlights the importance for property owners to address delinquent taxes promptly to avoid the risk of losing their property through tax sales and to take advantage of redemption opportunities when available.

According to Florida Statute § 197.502, property owners typically have at least two years after a tax lien sale to redeem their property before it can be sold at a tax deed sale. This two-year period begins from April 1 of the year that the tax certificate is issued. Furthermore, if seven years pass after the issuance of the tax certificate, and the purchaser of the tax lien does not apply for a tax deed, and no other administrative or legal proceeding, including bankruptcy, is on record, the tax certificate expires and becomes null and void, as outlined in Florida Statute § 197.482. These provisions provide property owners with specific timeframes and opportunities for redemption before the tax lien expires or the property is sold at a tax deed sale.

Yes, According to Florida Statute § 197.502, if the purchaser of the tax lien applies for a tax deed before the certificate expires, the clerk of the circuit court will hold a tax deed sale. During this sale, the property is auctioned to the highest bidder. After a tax sale, property owners still have the opportunity to redeem their property, but they must act quickly. Redemption can occur until the court clerk receives full payment for the tax deed, or until the county clerk issues the tax deed, as specified in Florida Statutes § 197.472 and § 197.552. Given the limited timeframe for redemption, it’s advisable for property owners who intend to redeem their property to pay off the tax debt well before the tax deed sale occurs to avoid the risk of losing their property to a new owner.

According to Florida Statute § 197.472, to redeem the property, the property owner must pay the face amount of the tax certificate, along with accrued interest and costs. Additionally, there might be a mandatory minimum charge of 5% if the lien purchaser bid less than 5% interest on the debt when acquiring the lien. However, if the purchaser bid an interest rate of 0% when buying the lien, then this charge does not apply.

Taking proactive steps to address property tax issues before they escalate can be beneficial for homeowners in Florida. Here are some actions homeowners can consider: Exemptions: Homeowners can explore whether they meet the criteria for a property tax exemption. Certain circumstances, such as financial hardship or property damage, may qualify homeowners for a reduction or exemption from property taxes for a specific period. Challenge Taxable Value: Homeowners have the right to challenge the taxable value of their home if they believe it is incorrect. This process involves submitting evidence to the local tax assessor’s office to support a lower assessed value, which can result in reduced property taxes. By taking these proactive measures, homeowners can potentially make their property taxes more manageable and avoid falling behind on payments, ultimately reducing the risk of facing tax lien sales or tax deed auctions. It’s essential for homeowners to stay informed about their rights and options regarding property taxes in Florida.