Understanding Volusia County Tax Certificates

• •Real estate taxes become delinquent on April 1 each year, at which point a 3% penalty is added.
• •The Tax Collector holds a public sale of tax certificates for unpaid parcels on or before June 1.
• •A tax certificate is a first-priority tax lien on property, not a deed or title to the land.
• •Certificate holders are prohibited from contacting property owners to demand payment until two years after April 1 of the issuance year.
• •The maximum interest rate on a tax certificate is 18% per annum; the minimum is 5% unless bid at 0%.
• •If no bidders purchase a certificate, it is issued to the County at 18% interest.
• •Property owners must pay the certificate amount plus accrued interest and a $6.25 redemption fee to clear the lien.
• •If a certificate is not redeemed within two years of the delinquency date, the holder may apply for a tax deed to auction the property.
• •Tax certificates expire and become void 7 years after the date of issuance.
• •There is a $2.25 fee for recording the transfer or assignment of a tax certificate.
• •Interest earned on tax certificates is taxable and reported to the IRS via form 1099-INT.

Property owners with delinquent taxes face the risk of a tax lien being sold to an investor, while investors may purchase these liens to earn interest or potentially apply for a tax deed after two years.

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.