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Tax sales often are confused with sheriff's sales.
But they are different, according to Kosciusko County Auditor Sue Ann Mitchell.
Tax sales are property tax driven. Sheriff's sales are creditor driven. Tax sales are handled by the county auditor and treasurer. Sheriff's sales are handled by the county sheriff.
Kosciusko County will hold a tax sale Oct. 13 at 10 a.m. in the old courtroom of the courthouse, 100 W. Center St., Warsaw. Interested bidders should arrive by 9:30 a.m. to register. Anyone with outstanding taxes can't purchase properties at the tax sale, according to state law.
Each county in Indiana has the duty to hold an annual tax sale. The county treasurer is required to certify properties annually that are three payments in arrears on July 1. Properties offered for tax sale this year have outstanding taxes from spring 2003. This means the delinquent property owners have received at least three bills they failed to pay.
Traditionally, according to Mitchell, Kosciusko County has sent tax bills one time each year, but because of the delays in the 2003 reassessment, a provisional bill was issued in the spring in addition to the reconciling bill sent in the fall.
In 2004, because of other counties having delays in their reassessment, a provisional tax bill also was sent this spring with a reconciling bill to follow this fall.
Once the tax sale list is certified by the treasurer, a $75 fee is added to the amount due to cover the tax sale expenses to the county. Certified letters are mailed to each delinquent property owner to notify them of the taxes due and the deadline to make payments to avoid their property being included in the tax sale. Property owners must pay with cash or certified funds only. Legal notices are printed in the local newspaper three times before the tax sale.
Once the tax sale list is ready, the auditor's office prints copies of the property information for public viewing. The list, as well as more information, also is online at www.kcgov.com. For researching properties, public terminals and printed lists are at the auditor's office.
The tax sale is held like any other auction. At the end of the tax sale, the successful bidder must pay the bid amount in full with cash or certified funds the day of the sale at the county treasurer's office. The bidder will be issued a tax sale certificate. Failure to pay the bid amount by the close of the business day can result in the bidder being required to pay 25 percent of the bid price and not be recognized as the successful bidder.
The delinquent property owner has the ability to redeem the property within one year. In that year, the bidder has no legal authority to enter the property but has more obligations and requirements to meet.
Mitchell said if the delinquent property tax owner decides to redeem the property, they are required to pay taxes due, tax sale charges and an additional 10 percent of the minimum amount bid if paid in the first six months. The rate increases to 15 percent after the first six months. Taxpayers redeeming properties also are required to pay 10 percent interest compounded daily on the bid in excess of the minimum bid. Costs for a title search and attorney fees incurred by the tax sale purchaser also can be added to the amount due.
The successful tax sale buyer must send by certified mail the delinquent property taxpayers notice of their intent to apply for a tax title deed no later than nine months after the date of sale. Tax sale buyers also must conduct a title search and publish of legal notice to provide more notification to the delinquent property owner that they are about to lose their property. Because legal notification is required by law, charges for the title search and notification are legitimate costs the bidder can expect to collect should the delinquent property owner redeem their taxes.
When delinquent property tax owners want to redeem their property, they must contact the auditor's office for a pay-off amount since interest is calculated daily.
For more information, call the auditor's office at 574-372-2322.
