Graham County prepares for tax lien sale
February 23, 2009
Graham County prepares for tax lien sale
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Property owners who are behind on their property tax payments still have time to pay their tax debt before the annual Graham County tax lien sale Feb. 25.
“We’re auctioning taxes, not property,” said County Treasurer Jean Reynolds.
Those who owe back taxes on their home or land have until Feb. 24 to pay their back taxes.
As of Jan. 29, almost 600 parcels in Graham County were eligible for the tax lien sale. Last year, tax liens valued at $147,000 were sold, while this year, the amount of taxes owed is $177,000, Reynolds said. The expectation is that the amount of back taxes and the number of parcels will be reduced before the tax lien sale.
“If the owner can, it’s best to pay before the sale,” Reynolds said.
Even if property owners pay nothing before the tax lien sale, they will not automatically lose their property. Instead, they will have to pay their tax debt — plus interest — to the holder of the tax lien.
Reynolds explained that back taxes on parcels throughout Graham County will be auctioned to the lowest bidder.
Investors — those interested in buying a tax lien — begin bidding at 16-percent interest.
The bidding continues until no one offers a lower bid. The low bidder then pays the delinquent property taxes plus fees.
Property owners who have tax liens must pay the lien holder the property taxes plus the amount of interest agreed upon at the tax lien sale, Reynolds said.
If property owners have not paid back taxes plus interest after three years the lien holder has the right to begin legal proceedings to foreclose on the property.
Reynolds said there are two reasons to purchase tax liens — as an investment to make money from the interest or in the hope to eventually gain title to the property.
“In either case, the property acts as collateral,” Reynolds said.
She said property owners who cannot pay the whole amount due should try to make payments to the treasurer’s office. Sometimes, reducing the tax debt makes the property less desirable to an investor, who is seeking to make a profit from the interest on the tax lien.
A list of the tax lien properties and the amount owed for 2007 is available on the county’s Web site, http:// www.gra-ham.az.gov. Click on county offices, then county treasurer and finally tax lien information.
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