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Volusia County Delinquent Real Estate Taxes & Tax Certificate Sale

2008 Sale Information
Advertising Dates: May 11, 18, 25, 2009
Dates Bids Can Be Submitted: May 11, 2009, 9:00 AM EDT - Closing of Batch on May 30, 2009
Date of Sale: May 30, 2009
Batch Closing Times: First Batch - 9:00 AM EDT Last Batch - 5:00 PM EDT

Frequently Asked Questions

This information has been compiled to answer the most frequently asked questions about delinquent real estate taxes and the sale of tax certificates on the internet.

The facts and procedures provided in the answers are based on Florida Law. The administration of delinquent real estate taxes by the office of the Volusia County Tax Collector has two basic objectives:

1. To collect the maximum amount of delinquent taxes for the taxing bodies, while
2. protecting the interest of the property owner.

When are property taxes due in Florida?
What happens when property taxes become delinquent?
Are delinquent taxes publicized?
What information does the newspaper ad contain?

What is a tax certificate?
How does someone acquire a tax certificate?
Who may participate in the tax certificate sale?
What do I do if I forget my password?
What is an Internet auction?
How is it different from a traditional tax sale?
What are the advantages of an Internet tax sale?
What equipment/software do I need to participate?
Who will show me how to use the Internet system?
Will it cost me anything to participate?
Will the Tax Collector be requiring a deposit?
How do I get started?

When are my bids due?
How does the bidding proceed?
What is a Batch?
What is Proxy bidding?
What if the taxes are paid before the first batch closes?
When do bidders have to pay for their purchases?
How do I submit a security deposit or pay for purchases?
What is an ACH Debit?
What happens to my deposit if I don't win certificates?

What is the interest rate?
How does the certificate holder receive the interest?
Can interest rates change after the certificate is awarded?
Why would a certificate be cancelled or reduced?
Are tax sale certificates transferable?
What about certificates struck to the County?

What is the “life” of a tax certificate?
What is the Tax Deed process?
What happens if the County starts Tax Deed proceedings and no one bids on the property?

When are real estate taxes and Non-Ad Valorem assessments due in Florida?
Real Estate taxes and non-ad Valorem assessments are due each calendar year and are payable November 1 (or later if the tax roll is not certified by the Property Appraiser early enough to meet that date). Discounts for early payment shall be at the rate of 4 percent in the month of November or at any time within 30 days after the mailing of the original tax notice; 3 percent in the month of December; 2 percent in the month of January; 1 percent in the month of February; and zero percent in the month of March or within 30 days prior to the date of delinquency if the date of delinquency is after April 1 of the following year.

What happens when real estate taxes and Non-Ad Valorem assessments become delinquent?
3% interest (18% per annum for 2 months) plus advertising cost is added when payment is made in April or May. The Tax Collector is required to conduct a sale of tax certificates to collect the preceding year's unpaid real estate taxes. The sale must start on or before June 1, unless a late tax roll makes this impossible.

Are delinquent taxes publicized?
The Tax Collector must advertise the delinquent taxes in a general circulation newspaper. The County Council chooses the newspaper. The advertisement is printed weekly, three times prior to the tax certificate sale. The advertisement is currently in the New Journal’s legal advertisement called the Volusia Review.

What information does the newspaper ad contain?
The place, date, and time of the tax certificate sale; a listing of each parcel showing the delinquent tax amount; the property owner's name; and the property control number. The parcels are consecutively numbered for reference during the sale. The delinquent tax amount (certificate's face amount) consists of the sum of the following: real estate tax and non-ad Valorem assessment amount, interest (3% for months of April and May), Tax Collector commission (5%), newspaper advertising charges, and a fee for the cost associated with the sale of tax certificates on the internet.

What is a tax certificate?
It is a first lien on the real estate. The face value of the certificate is the amount of taxes due, plus interest, costs and charges thereon. Purchase of a tax certificate does not permit the certificate holder to enter the property or harass the owner. The property owner has a period of two years from the date the tax became delinquent to redeem the tax certificate. Redemption is done through the County office only.

How does someone acquire a tax certificate?
On or before June 1 of the same year the taxes become delinquent, the County holds a sale of tax certificates on all parcels on which taxes have not been paid.

Who may participate in the tax certificate sale?
Anyone. To participate in the sale a bidder must register with the Tax Collector's office via the www.BidVolusia.com web site. A bidder number is assigned for identification purposes during the sale. Bidders are required to make a deposit via ACH Debit on the www.BidVolusia.com Payments Page that is 10% of the estimated amount they intend to purchase. The deposit may be increased any time prior to the close of the auction.

What do I do if I forget my password?
Please be careful to remember your password, as it is the key to your access to the www.BidVolusia.com web site. If, however, you forget your password, it may be recovered easily by clicking on the "Forgot your password?" link on the www.BidVolusia.com home page. When you provide your matching personal information, a new temporary password will be sent to your registered email address. The password will need to be changed after your next login.

What is an Internet auction?
An auction in which bids are transmitted and received through the Internet using a computer and a web browser.

How is it different from a traditional tax sale?
In a traditional sale, bidders congregate in a large room and call out their bids to the auctioneer. An Internet sale allows this process to be handled electronically. Each bidder will use a personal ID and Password to log on to the web site and enter bids for individual tax certificates prior to the sale date.

What are the advantages of an Internet tax sale?

To the bidders:

• Easy access to underlying property and tax information from multiple public sources.
• Bids can be submitted in the comfort and privacy of the users home or office.
• An extended time frame during which the bidder can submit and review bids. A bidder does not have to worry about being heard by an auctioneer.
• Unofficial results from an auction can be viewed immediately after the auction is over.

To the Tax Collector?

• Substantial savings of time and money.
• Internet platform allows users to bid from any location with an Internet connection, which can help to increase the number of bidders and the level of competition.

What equipment or software do I need to be able to participate?
A bidder must have Internet access and a web browser (recommended: Internet Explorer 5.0 or higher on Windows 98, Me, NT, 2000, or XP; Netscape 7.1 or higher; or Mozilla FireFox 0.8 or higher). If you do not have access to a computer, the tax collector will supply computers for training and/or bidding by appointment. You can reach the Tax Collectors office at (386-736-5938).

Who will show me how to use the Internet system?
Users are encouraged to participate in a Self Demo, Trial Auction or a Guided Demo prior to bidding.

• Self-Demo - Please click the Demo button on the Home page and follow the instructions. The instructions are designed to lead users through the auction process.
• Trial Auction Please click the Trial Auction button on the Home page. The Trial Auction is a simulation of a real auction, in which bidders practice bidding and, subsequently, viewing auction results.
• Guided Demo - Please contact Grant Street Group to receive a Guided Demo (which is available only after user completes the Self Demo). Grant Street Group will guide the user through the auction process on the website over the phone at (800-410-3445 x1).

Will it cost me anything to participate?
Bidders will be able to participate on the website at no cost.

Will the Tax Collector be requiring a deposit?
Yes, the Tax Collector will be requiring a ten percent deposit from anyone wishing to participate in the Tax Certificate Sale.

How do I get started?

• Register on the website to receive a personal ID and Password.
• Review the Self-Demo, Trial Auction, and/or Guided Demo.
• Complete and submit online IRS Form W-9.
• Submit security deposit, as required.

When are my bids due?
Bids can be submitted on the web site once the Advertised List is published. The advertised list will be divided into batches. Bids can be withdrawn or altered at any point up to the closing of the Batch on the day of the sale.

How does the bidding proceed?
Each item is auctioned in the order listed in the publication. The bidding begins at 18% (the maximum rate) and is bid down. The "winning" bidder's number and rate of interest are recorded. Any items not bid upon are “struck” to the County.

What is a Batch?
Batches are auction subgroups of the Advertised List that serve as a means of organizing tax certificates for the purpose of facilitating bid submission. Each tax certificate in each Batch is auctioned independently of every other tax certificate and arranged in sequential order with a unique auction closing time for each Batch.

What is Proxy bidding?
In a live auction, a bidder will lower his bid by quarter percent increments until he is the only bidder left or until the interest goes below his acceptable minimum level, at which point he would drop out. Proxy bidding is a form of competitive sale in which bidders enter the minimum interest rate that they are willing to accept for each certificate. The auction system acts as an electronic agent, submitting bids on behalf of each bidder. The result of the proxy system is that the electronic agent keeps lowering the bid to submit by quarter percent increments until you are either the only bidder left, (in which case you get the certificate at a quarter percent lower than the previous bid) or until you reach the floor you have set. Zero percent bids will not be treated as proxy bids. They will be awarded at zero.

• If you are the only bidder on a given certificate and your minimum rate is greater than zero percent, the electronic agent will submit a bid of 18% on your behalf.
• In the case of a tie at the winning bid rate, the system awards to one of the tie bidders through a random selection process using a random number generator.
• In no case will a bidder be awarded a certificate at a rate lower than his specified minimum acceptable rate.
• Certificates that receive no bids will be struck to the county at 18%.

What happens if the delinquent taxes are paid after my bid is submitted but before the first batch closes?
A certificate will not be issued on parcels that have been paid prior to the closing of the first batch. The winning bidder on a paid parcel will receive a credit to the unused portion of their budget. The web site will be updated daily to reflect the most recent payoffs.

When do the bidders have to pay the amount due for their purchases?
After the sale they are given a date certain that they must pay the balance due via ACH Debit on the Payments Page of the www.BidVolusia.com web site. Failure to pay by that date results in the forfeiture of the deposit and makes the certificates available for re-sale.

How do I submit my security deposit and pay for certificates purchased?
All security deposits and certificate purchases will be paid via ACH (Automated Clearinghouse) Debit.

What is an ACH Debit?

• An ACH debit is an electronic funds transfer from your bank account, initiated by the Tax Collector with your prior authorization for a specified amount. Debits entered on the Payments Page of the web site will be submitted immediately for processing.
• Funds must be drawn from a US financial institution. Some types of money market, brokerage, and/or trust accounts cannot accept ACH debits. Please check with your financial institution prior to initiating payment on the web site.
• For more information on ACH, please visit the NACHA, the Electronic Payments Association at www.nacha.org.

What happens to my security deposit if I don't win any certificates?
The Tax Collector will issue refunds for unused portions of the deposit via ACH debit to your bank account.

What is the interest rate?
The maximum interest the law allows on a tax certificate is 18 percent per annum, simple interest. The minimum interest received by the purchaser is 5% unless bid at zero (Florida Statutes 197.472(2)). On certificates issued at zero percent, no interest will be paid on the face amount. Certificates purchased at .25% will only earn the 5% minimum over the life of the certificate.

Example: Bid of 18 percent

How does the holder of the certificate receive the interest income?
The Tax Collector remits the principal (face amount of certificate) and the interest earnings when the property taxes are eventually paid or when a Tax Deed is executed.

Can interest rates be changed after the certificate has been awarded?
When a certificate is redeemed and the interest earned is less than 5%, a mandatory charge of 5% is due. This applies to all certificates except those with an interest rate bid of 0%. If a certificate should be cancelled or reduced, the interest earned will be 8% per year, simple interest or the rate of interest bid at the tax certificate sale, whichever is less on the cancelled or reduced amount. Bankruptcy rulings may also affect the interest rate.

Why would a certificate be cancelled or reduced?
To correct errors, omissions, or double assessments and when ordered by a court. In the event an error is discovered, a tax certificate may be cancelled or corrected by authority of the Department of Revenue. In this case, eight percent interest per annum will be paid, except as revised by law or court order.
For all certificates sold on and after October 1, 1998, if the rate bid is less than eight percent, the amount refunded shall earn interest at the rate bid.

Are tax sale certificates transferable?
Tax certificates may be sold and/or transferred to another party. Transfer forms are available upon request from the Volusia County Tax Collector’s Offices. All tax certificate transfers MUST be recorded in the Volusia County Tax Collector’s Office in DeLand. There is a $2.25 fee for recording each assignment in the official records. In addition, the new owner must complete a W-9 form for reporting interest collected and subsequently disbursed to the certificate holder. When an assigned certificate is redeemed, the total accumulated interest from the original date of issuance is reported to the IRS under the certificate holder’s Social Security/Federal Tax ID number, regardless of the date of transfer.

What about certificates struck to the County?
Individuals may acquire county-held tax certificates, other than those on homestead real estate under $100.00, after the close of the tax sale. The Volusia County Tax Collector will announce to all bidders, via e-mail, the date these certificates will become available.

What is the “life” of a tax certificate?
The life of the tax certificate is seven years from the date of issuance. After seven years, if tax deed proceedings have not been initiated, and if there is no litigation in process, the certificate is cancelled per Florida statutes 197.482.

What is the Tax Deed process?

• Certificates, which have not been redeemed within two year’s period from April 1 of the year of issuance, are eligible for a tax deed application.
• An application to start Tax Deed Auction proceedings must be made to the Volusia County Tax Collector’s Office in DeLand. The holder is given a statement showing monies needed to proceed to tax deed sale. Any certificate holder, other than the County, who makes application for a tax deed shall pay the Volusia County Tax Collector’s Office at the time of application all amounts required for redemption or purchase of all other outstanding tax certificates, plus interest, any omitted taxes, plus interest, any delinquent taxes, plus interest, and current taxes if due, covering the land. In addition to outstanding taxes the applicant must pay an Ownership and Encumbrance Report fee, Tax Deed application fee, and at a later date the Clerk of the Circuit Court will request the Clerk’s fee, advertising fee, Sheriff’s fee and other additional fees. These amounts, plus the value of the holder’s certificate and accrued interest, make up the opening bid at the tax deed sale.
• Where property is homestead, one half of the assessed value will be added to the opening bid per Florida Statute 197.502.
• A tax deed sale is a public auction held at the DeLand Courthouse and conducted by the Clerk of the Circuit Court located at 101 N. Alabama Ave. Room 119C, DeLand, Florida.
• Property is sold to the highest bidder and a tax deed is issued. If an applicant wants title to the property, they (or their agent) must be at the tax deed sale to bid. The Clerk of the Circuit Court handles all purchases of property.
• If the property is redeemed before the public auction sale, all monies will be refunded to the applicant. Interest of 1.5 percent per month is added from the date the applicant paid all fees to the date of redemption or sale.
• All redemption of certificates must be processed through the Tax Collector's Office.

What happens if the County starts tax deed proceedings and no one bids on the property?

• If the County made the tax deed application and there are no other bidders at the public auction, the Clerk shall enter the property on a “List of Lands Available.” The County will have 90 days after the sale date to purchase the land for the opening bid. After 90 days, any person or governmental unit may purchase the land for the opening bid.
• Subsequent years taxes will not be extended on the tax roll against parcels listed as Lands Available. However, when the property is purchased from the “List of Lands Available”, the non-extended taxes will be added to the minimum bid.
• Tax certificates sold against a parcel no longer will earn interest once the parcel is entered on the “List of Lands Available.”
• If the tax deed application was based on a certificate issued prior to October 1999, the parcel will remain on the “List of Lands Available” for seven years from the date the land was offered for public sale. After the seven years the land shall revert to the County and the tax liens against the property are cancelled. For certificates issued after October 1999, the parcel will remain on the “List of Lands Available” for three years.
• For information concerning parcels on the ”List of Lands Available”, please contact the Clerk of the Circuit Court at 101 N. Alabama Ave. Room 119C, DeLand, Florida or (386) 736-5913.

Peggy Flomerfelt
Revenue Director
Volusia County
123 West Indiana Avenue, Room 103
DeLand, Florida 32720

In accordance with the provisions of ADA, this document may be requested in an alternate format.

Contact the Tax Collector's Office at (386) 736-5938.

NOTICE
The offer or sale of vacant residential lots or parcels in a subdivision may be subject to the Land Sales Practices requirements of Chapter 498, Florida Statutes, and may require you to be registered with Florida Department of Business and Professional Regulation, Division of Florida Land Sales, Condominiums and Mobile Homes. As a point of information, an individual (who is not a developer is allowed to buy a tax deed for only one lot in a planned subdivision for the purpose of resale. Section 498.025(1), Florida Statutes states:” The provisions of this chapter do not apply to: (a) the offer or disposition of an interest in subdivided lands by a purchaser for his or her own account in a single isolated transaction.” The Bureau of Florida Land Sales has stated that its concerns are with providing disclosure to persons who are successful bidders; and who after two years apply for a tax deed, and who at the courthouse public auction obtain multiple tax deeds, for the purpose of resale to multiple purchasers. A seller of lots in property subdivided or proposed to be subdivided into 50 lots or more is required to be registered with the Department of Business and Professional Regulation, Division of Florida Land Sales, Condominiums, and Mobile Homes. Also, if a certificate holder purchases 5 certificates in subdivision that contains 25 or more lots, and eventually obtained 5 tax deeds, he would be subject to the provisions of section 498.022, Florida Statutes, regarding standards for transacting land sales. Therefore, it is recommended that, when purchasing certificates on lots or parcels in a subdivision, the Department of Business and Professional Regulation, Division of Florida Land Sales, condominiums, and Mobile Homes be contacted at (850) 488-1631 to ascertain your responsibility with regard to subsequent sales transactions of lots in that subdivision.

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